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Procore

Configure Settings: Prime Contract

Objective

To configure the Prime Contract tool's settings for a Procore project.

Background

When setting up a Procore project, a user with 'Admin' permission on the Prime Contract tool will first use the steps below to configure the tool's settings for users of the tool. Because users can create a single prime contract or multiple prime contracts on a single project (see Create Prime Contracts), the settings listed below are applied globally to all of the prime contracts in a project:

  • Contract Configuration. Define the number of prime change order tiers for the project, gives you the option to grant users with 'Standard' permission on the Prime Contract tool the privilege to create potential change orders, and lets you choose if you want to make the Schedule of Values (SOV) editable. 
  • Contract Dates. Enable or disable specific date fields in the prime contract.
  • Default Distributions. Specify the users to include by default on the Prime tool's email notification distributions. 
  • Funding Sources. Add any funding sources related to the prime contract.

You can also set up customized settings to apply to each prime contract that your users create in a single project. To learn how, see Edit the Advanced Settings Tab for a Prime Contract.

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Prime Contract tool.
  • Prerequisite:
    • Determine the number of change order tiers to apply to your project. To learn more, see "What are the different change order tiers?" in the See Also section below.
  • Additional Information:

Steps

  1. Navigate to the project's Prime Contract tool.
  2. Click the Configure Settings  icon.
  3. Under Contract Configuration, do the following:

    pc-contract-configuration.png
     
    1. Number of Prime Contract Change Order Tiers
      Select one option from the drop-down list to define how change orders will be managed on the project:
      Important! This setting cannot be changed after the first change order is created.
      • 1. A one (1) tier change order configuration requires users to create only prime contract change orders. See Create a Prime Contract Change Order (PCCO) or Create a Prime Contract Change Order (PCCO) with DocuSign.
      • 2. A two (2) tier change order configuration gives users the ability to create potential change order (see Create a Potential Change Order (PCO)) that can then be grouped into a single Prime Contract Change Order) and sent to a user for approval. This is the default setting for Procore projects. 
      • 3. A three (3) tier change order configuration gives users the ability to create a potential change order which can then be added individually or grouped into Change Order Requests. Once the requests are approved, Change Order Requests can be grouped into a single prime contract change order. 
    2. Allow Standard Level Users to Create PCOs
      Place a mark in this checkbox to grant users with 'Standard' permissions the privilege to create potential change orders.
      Note: If you clear the mark from the checkbox, only users with 'Admin' permission can create potential change orders. 
    3. Enable Always Editable Schedule of Values
      Place a mark in this box to give users the ability to edit the SOV at any time. Clear the mark from the checkbox to restrict users from editing the SOV once an invoice is created or a prime contract change order is in the Approved status.
      Note: Any update to this setting affects only new invoices and is NOT applied retroactively to existing Invoices
      Enabling this option provides users with the ability to:
      • Add new line items.
      • Update values in the Cost Code column of a line item, if the it has NOT been billed in an invoice.
      • Update entries in the Description column.
      • Update entries in the Type column, if the it has NOT been billed in an invoice.
      • Reduce the Contract Amount to the Billed to Date amount.
      • Rearrange line item rows.
      • Delete line item rows, if the line item has not been billed for in an invoice.
  4. Under Contract Dates, place a mark in these checkboxes to enable these date fields in the Prime Contract tool:

    pc-contract-dates.png
     
    • Enable Approval Letter Date. A mark in this checkbox lets users select the contract's approval letter date from a calendar control.
    • Enable Contract Date. A mark in this checkbox lets users select the date of the contract from a calendar control. The contract date is the effective date of the contractual agreement (i.e., the date the contract goes into force). 
    • Enable Issued On Date. A mark in this checkbox lets users select the date the contract was issued from a calendar control. The issued on date is the date the contractual agreement was issued to both parties.
    • Enable Execution Date. A mark in this checkbox lets users select the date the contract was executed from a calendar control. The execution date is the date the agreement was signed by both parties. 
    • Enable Returned Date. A mark in this checkbox lets users select the date the contract was returned from a calendar control. 
    • Enable Letter of Intent Date. A mark in this checkbox lets users select the date a letter of intent. A letter of intent is a document outlining the agreement between parties before the contract is finalized. 
    • Enable Substantial Completion Date. A mark in this checkbox lets users select the date that the project work was substantially completed. The substantial completion date refers to the date that work is considered sufficiently complete to satisfy contractual requirements. It also indicates the date that the project owner or client can assume occupancy of all or part of a project and the general contractor is entitled to receive contract balance payment (less retainage) until final completion.
      Note: If enabled, the prime contract's substantial completion date will be updated to each Prime Contract Change Order's Revised Substantial Completion Date once each Prime Contract Change Order has a status of Approved.
  5. Under Default Distributions, select a person from each drop-down list.

    pc-default-distributions.png
     
    • Prime Contract. Select default distributions to be included in communication regarding the prime contract. This can be people who need to review the prime contract before it is approved. 
    • Prime Contract Change Order. Select default distributions to be included in communication regarding PCCOs (Prime Contract Change Orders). 
    • Prime Contract Change Order Request. Select default distributions to be included in communication regarding CORs (Prime Contract Change Order Requests).
    • Prime Contract Potential Change Order. Select default distributions to be included in communication regarding Prime Contract Change Orders (Prime Contract Potential Change Orders). 
  6. Click Update.
  7. Under Funding Sources, add the sources for funding your project as follows. A funding source can include federal, state, and local funds, bonds, grants, tax revenue, loans, programs, and more. 

    pc-funding-sources.png
     
    1. Name. Enter the name of a funding source in the box.
    2. Description. Enter a description of the funding source in the box.
    3. Click the plus (+) sign to add the line item.
  8. Click Update.

See Also