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Procore

Create a Subcontract

Objective

To create a subcontract using the project's Commitments tool. 

Background

In Procore, the term commitment refers to a subcontract or a purchase order. These commitments represent a legally enforceable financial agreement that must be fulfilled on a construction project. See Commitments (Project Level)

Things to Consider

  • Required User Permission:
    • To create a subcontract, 'Admin' level permission on the project's Commitments tool.
      OR
    • To create a subcontract as a user with 'Standard' or 'Read Only' level permission to the Commitments tool, the 'Create Subcontract' granular permission must be enabled on the permission template associated with your user account on the project. See Grant Granular Permissions in a Permission Template.
  • Additional Information:
    • An alternative way to create a subcontract is to award a winning bid and convert it into a subcontract. See Award a Winning Bid and Convert it into a Subcontract.
    • Subcontracts can be transitioned into a Change Order (for 1-tier Change Orders) or into a Potential Change Order (for 3-tier Change Orders). See What are the different change order tiers?
    • You can create a Potential Change Order for a subcontract only when it is in the 'Approved' status.
    • To learn how to set the accounting method, see How do I set the accounting method for a commitment or prime contract?
    • If your company has enabled the ERP Integrations tool:

      • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
        • Integration by Ryvit. The commitment must have at least one (1) SOV line item with a Integration by Ryvit phase code. In addition, the cost code must be assigned to at least one (1) category. See Assign Default Cost Types To Integration by Ryvit Cost Codes). Important! When a commitment is exported to Integration by Ryvit, it must have a unique commitment number. Procore recommends that the numbering convention you set up for the Commitments tool is preceded by the Project Number and then uses the default numbering system. For example, if your Project Number is 001, your numbering system would be 001-001, 001-002, 001-003, and so on. 
        • QuickBooks®. The commitment must have at least one (1) SOV line item with a QuickBooks® cost code. The cost code does not need to be assigned to a category, because QuickBooks® does not support the category concept.
        • Sage 100 Contractor®. A commitment must have one (1) SOV line item with a Sage 100 Contractor® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
        • Sage 300 CRE®. The commitment must have at least one (1) SOV line item with a Sage 300 CRE® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
        • Viewpoint® Spectrum®. The commitment must have at least one (1) Schedule of Values (SOV) line item with a cost code from the Viewpoint® Spectrum® project. The cost code must be assigned to at least one (1) category. Category assignments must always be updated in Viewpoint® Spectrum®. 

Steps

  1. Navigate to the project's Commitments tool.
  2. Click Create Subcontract.
  3. Under General Information, do the following:
    • #. Leave the system's default commitment number or type over the existing value to customize the numbering scheme for your project's subcontracts. See How are commitments numbered in Procore?
    • Title. Enter a descriptive title for the subcontract. 
      Notes:
    • Contract Company. Select the company responsible for completing the work on the subcontract (for example, American Construction Co.).
      Notes:
    • Invoice Contacts. Select one (1) or more employees of the 'Contract Company' to designate as the invoice contacts. 
      Notes:
      • After the new commitment is saved, these individuals names will appear in the 'Invoice Contacts' and 'Private' list under General Information in the subcontract. 
      • These names also appear on the Invoice section of the Advanced Settings tab as 'Invoice Contacts.'
      • Invoice contracts receive an Invoice Invitation email and Reminder email. 
    • Status. Specify the status of the commitment.
      Note: These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, Set up a New Budget View.
      • Draft. This is the default status when you create a commitment. 
      • Out for Bid. Indicates the subcontractor is out for bid. Subcontracts in this status are NOT reflected in the project's Budget tool. 
      • Out for Signature. Indicates the subcontractor is out for signing. Subcontracts in this status are NOT reflected in the project's Budget tool. 
      • Approved. Indicates the subcontract has been approved. Subcontracts in this status are reflected in the project's Budget tool. 
      • Complete. Indicates the subcontract has been approved. Subcontracts in this status are reflected in the project's Budget tool. 
      • Terminated. Indicates the subcontract and the agreement has been terminated. Subcontracts in this status are NOT reflected in the project's Budget tool. This status should only be applied when the subcontractor has NOT performed any work on the project. 
      • Void. Indicates the subcontract is no longer valid. Subcontracts in this status are NOT reflected in the project's Budget tool. 
    • Executed. Place a mark in this checkbox to denote that the subcontract was fully signed and executed.
      Notes:
      • Many Procore users choose to place a checkmark in the Executed box when placing the commitment into the  'Approved' or 'Complete' status.
      • The time at which your project team places a checkmark in the Executed box should always be aligned with your project's unique business process 
    • Private. By default, a mark appears in the Make This Visible Only to Administrators and the Following Users checkbox. This means the commitment is only visible to users with 'Admin' permissions on the Commitments tool and any users specified by the following privacy option: 
      • Select a Person. Select one (1) or more users from the list. The users listed here have been granted 'Read-Only' permissions or higher on the Commitments tool. See Manage Permission Templates
      • Allow These Users to See SOV Items. If you place a checkmark in this box, the selected users are also granted 'Read-Only' access to view the commitment's SOV line items. 
    • Default Retainage. Specify the percent of payment retainage that will be withheld (for example, 10).


      invoicecontacts.png
    • Description. Provide additional information, as necessary.
    • Contract Dates:
      • Start Date. Select the date when the scope of work will begin on the job site.
      • Estimated Completion Date. Select the estimated date of when the scope of work will be finished.
      • Signed Contract Received Date. Select the date when the subcontract was officially signed.
      • Actual Completion Date. Select the date when the scope of work was deemed complete.
    • Additional Information:
      • Inclusions. Disclose any inclusions that may not be clearly stated in the related contract documents.
      • Exclusions. Disclose any exclusions that may not be clearly stated in the related contract documents.
      • Attachments. Attach any related materials such as pricing quotes, receipts, signed purchase orders, etc. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  4. Click Save.
    Notes:
    • Typically, you will use the Create option instead of the Create & Email option because you may still need to add items in the SOV.
    • f you want to create the subcontract and then go directly to the page where you will enter a schedule of values, click the Create & Enter SOV button.
  5. Click Schedule of Values
    Notes:
  6. Click Edit
  7. Add all related line items.
    Note: If you want to import these fields from a CSV, skip to the instructions for Import from a CSV below.
    • Prime Contract Line Item. If you do not have the Change Events tool enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non Budgeted" option.
    • Sub Jobs. Any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub jobs will appear in the following field. If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept?
    • Cost Code. Select the appropriate cost code for the item. (for example,  select 02-200 - Earthwork)
    • Tax Code. Enter a tax code to use for this line item.
      Note: This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    • Description. Enter a brief description about the line item.
    • Type. Select the appropriate item type from the drop-down menu. (for example, Labor or Subcontractor)
    • Amount. Specify the cost of the line item.
  8. Click the add icon (+). 
    Notes:
    • If the budget code consists of an unbudgeted cost code, cost type, sub job combination, a pop-up message appears to ask you if you want to add this line item to your project's budget.
    • If you click OK the line item is added to the Budget with a question mark (?) icon next to it, to indicate it is an unbudgeted cost code, cost type, sub job combination. See Add a Partial Budget Line Item.
  9. Add additional line items, as necessary.
  10. Click Save.
    Note: When you are ready to forward the subcontract to the subcontracting company, click Email Contract. Be sure to change the status of the commitment, as necessary, to keep it up-to-date.

Import from a CSV 

If you want to import multiple line items to an SOV, the Commitments tool provides users with a CSV template that you can download, complete, and then upload to Procore. For instructions, see Import Commitment SOV Line Items from a CSV File.

See Also 

The Integration by Ryvit is the product of a partnership between Procore and Ryvit, a third-party developer. Viewpoint, Inc. is not affiliated with this connector. All Viewpoint® Vista™ marks and logos are owned by Viewpoint, Inc.