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Procore

Create a Commitment/Agreement (EYA)

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To create a commitment that is a subcontract between two parties.

Background

A commitment typically represents a contractual agreement between a an owner who is financing the construction project and the subcontractor who is being paid to manage the trades on the project. 

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:

Jump to creation steps for Standard and Multifamily Subcontract Commitments or Professional Services Agreements Commitments

EYA Standards & Practices

Subcontract Workflow Approval Diagram.pngStandard Subcontract Agreement Process:

The Procurement Manager accepts a bid from a contractor and creates the commitment in Procore. They will use one of the following EYA custom workflow to process the bid approval and contract review:

Subcontract Approval Workflow

Creator -> Director of Procurement (Award Approval) -> SVP of LD or Construction (Award Approval) -> Contracts Specialist to Create Schedule A -> Contract Specialist to Create Contract -> VP of Townhome Construction (Contract Approval) -> Contract Specialist to Send Contract for Signature via DocuSign, add vendor to EYAnet and Request COI -> Accounting to review COI -> Accounting to review SOV & Schedule A -> COO review

Bond Required Approval Workflow

Creator -> Director of Procurement (Award Approval) -> SVP of LD or Construction (Award Approval) -> Contracts Specialist to create Contract -> Director of Procurement (Contract Approval) -> Contracts Specialist to add Schedule A in Mark Systems -> Accounting to cross check both SOV & Schedule A -> VP of TH Construction (Contract Approval) -> COO review -> Procurement to confirm receipt of Bond and then send via DocuSign and add to EYAnet.

 

Multifamily Subcontract Agreement Process:Multifamily Commitment Workflow Process Map.png

The Multifamily Project Executive accepts a bid from a contractor and creates the commitment in Procore. They will use the following EYA custom workflow to process the bid approval and contract review:

Multifamily Approval Workflow

Creator -> SVP of Construction (Award Approval) -> Creator (Contract Creation)-> VP of Procurement or SVP of Construction (Contract Approval) -> Creator -> Accounting -> COO

 

 

 

 

 

 

 

Professional Services Agreement Contracting Process - Engineering:

The DOE/DM will initiate the creation of the Professional Services Agreement. They will receive a professional services proposal, review against the budget, create a cost comparison and confirm with SVP LD. Once scope and fee are approved, the DOE/DM will produce the PSA Checklist for the Procurement Lead and create a Commitment in Procore, including full Schedule of Values. The Commitment will route through the Commitment Approval Workflow. The DOE/DM will receive an automatic notification once the Schedule A has been entered into Mark Systems and the contract fully executed.

Engineering Professional Services Agreement Workflow

Creator -> SVP of Land Development (Award Approval) -> Development Lead (Award Approval) -> Procurement Manager to create Mark Systems Schedule A -> Accounting to cross check both SOV & Schedule A -> Procurement to Generate PSA -> VP of TH Construction to approve contract documents -> Procurement to send via DocuSign and add vendor to EYAnet.

 

 

 

 

 

 

 

 

 

Professional Services Agreement Contracting Process - Architecture

The DOA/DM will initiate the creation of the Professional Services Agreement. They will receive a professional services proposal, review against the budget, create a cost comparison and confirm with VP Architecture. Once scope and fee are approved, the DOA/DM will produce the Agreement and create a Commitment in Procore, including full Schedule of Values. The Commitment will route through the Commitment Approval Workflow. The DOA/DM will receive an automatic notification once the Schedule A has been entered into Mark Systems and when contract is fully executed.

Architecture Professional Services Agreement Workflow

Creator -> VP of Architecture (Award Approval) -> Development Lead (Award Approval) -> Procurement Manager to create Mark Systems Schedule A -> Accounting to cross check both SOV & Schedule A -> Procurement to send via DocuSign and add vendor to EYAnet.

 

 

 

 

Steps for Standard Subcontract Commitment (Jump to Professional Service Agreement Contracting instructions)

  1. Navigate to the project's Commitments tool.
  2. Click the Create Subcontract button in the right sidebar.
  3. Enter general information about the commitment.
    General Information:
    • Sign with DocuSign*: Check this box if you are going to use DocuSign to gather signatures.
    • #*: Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, Procore will automatically number the first subcontract. (e.g. SC-01-001) Subsequent commitments will automatically be prefilled with the next sequential number based on the format of the first commitment. (e.g. SC-01-002)
    • Title*: Provide a descriptive name for the commitment. 
    • Contract Company*: Select the vendor/company with responsibility for fulfilling the commitment (e.g. American Construction Co.). This vendor/company must exist in the Project Directory. See Add a Company to the Project Directory.
    • Invoice Contacts*:  After saving the commitment, any users added here will be added to the Private section as well as in the Invoice Contacts in the commitment's Advanced Settings. You must add a contract company to the commitment before you can add any invoice contacts. These users will also pull into the DocuSign integration automatically.
    • Status: This is determined by our custom workflows and will say draft. 
    • Private*: Specify who can view the subcontract. By default, the subcontract is "private" and is only visible to users with 'Admin' level permissions on the Commitments tool. You can also allow non-Admin level users to view the subcontract, if desired. Additionally, you can allow selected non-Admin users to have 'Read-Only' access to the individual line items on the SOV subtab. Users cannot receive RFQs if not added to this drop-down.
    • Default Retainage: Specify the percent of payment retainage that will be withheld. (e.g. 10)

invoicecontacts.png

  • Description*: Provide the description of the Commitment.
  • 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: This will auto-populate with the date the contract is signed via DocuSign.
  • Actual Completion Date: Select date when the scope of work was deemed complete.
  • 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.
  • Contract Type*: Select the Standard Subcontract type.
  • Display Alternate Company Name: Check this box if the entity name of the contract or PSA is different than EYA Construction, Inc.
  • Company Name to Display: Enter entity name to display on this Commitment and all associated Change Orders.

  1. Workflow Setup.
    • Select the workflow to use and edit the names of the users if different from the Project's defaults.
  2. Save your changes. Typically, you will use the Create option instead of the Create & Email option because you may still need to add items in the SOV.
  3. Click the Schedule of Values tab. 
  4. Click Edit
  5. Add all related line items. To import these fields from a CSV, see Import from a CSV below.
    • 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. (e.g. 02-200 - Earthwork)
    • Description: Enter a brief description about the line item.
    • Type: Select the appropriate item type from the drop-down menu. Use "Other".
    • Amount: Specify the cost of the line item.
  6. Click the add icon (+).
  7. Add additional line items, as necessary.
  8. Save your changes.
  9. When you are ready to forward the subcontract to the next person in the Workflow, click the Submit button in the actions box at the top of the page. 

Steps for Professional Service Agreement Contracting

Click here for step by step tutorial with screenshots.

  1. Navigate to the project's Commitments tool.
  2. Click the Create Subcontract button in the right sidebar.
  3. Enter general information about the commitment.
    General Information:
    • Sign with DocuSign*: Check this box if you are going to use DocuSign to gather signatures.
    • #*: Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, Procore will automatically number the first subcontract. (e.g. SC-01-001) Subsequent commitments will automatically be prefilled with the next sequential number based on the format of the first commitment. (e.g. SC-01-002)
    • Title*: Provide a descriptive name for the commitment. 
    • Contract Company*: Select the vendor/company with responsibility for fulfilling the commitment (e.g. American Construction Co.). This vendor/company must exist in the Project Directory. See Add a Company to the Project Directory.
    • Invoice Contacts:  After saving the commitment, any users added here will be added to the Private section as well as in the Invoice Contacts in the commitment's Advanced Settings. You must add a contract company to the commitment before you can add any invoice contacts. These users will also pull into the DocuSign integration automatically.
    • Status: This is determined by our custom workflows and will say draft. 
    • Private: Specify who can view the subcontract. By default, the subcontract is "private" and is only visible to users with 'Admin' level permissions on the Commitments tool. You can also allow non-Admin level users to view the subcontract, if desired. Additionally, you can allow selected non-Admin users to have 'Read-Only' access to the individual line items on the SOV subtab. Users cannot receive RFQs if not added to this drop-down, and with PSA commitments, you most likely will not send RFQs.
    • Default Retainage: Specify the percent of payment retainage that will be withheld. (e.g. 10)

invoicecontacts.png

  • Description*: Provide the description of the Commitment.
  • 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: This will auto-populate with the date the contract is signed via DocuSign.
  • Actual Completion Date: Select date when the scope of work was deemed complete.
  • 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. If you are using Procurement to generate the PSA for you, attach the PSA Checklist. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  • Contract Type*: Select the contract type.
    • Professional Services Agreement
    • Owner-Architect Agreement
  • Display Alternate Company Name*: Check this box.
  • Company Name to Display*: Enter the owner entity name to display on this Commitment and all associated Change Orders. (i.e. RTS Homes Associates LLC)

  1. Workflow Setup*.
    • Select the Professional Services workflow to use and edit the names of the users if different from the Project's defaults.
  2. Save your changes. Typically, you will use the Create option instead of the Create & Email option because you may still need to add items in the SOV.
  3. Click the Schedule of Values tab. 
  4. Click Edit
  5. Add all related line items. To import these fields from a CSV, see Import from a CSV below.
    • 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. (e.g. 02-200 - Earthwork)
    • Description: Enter a brief description about the line item.
    • Type: Select the appropriate item type from the drop-down menu. Use "Other".
    • Amount: Specify the cost of the line item.
  6. Click the add icon (+).
  7. Add additional line items, as necessary.
  8. Save your changes.
  9. When you are ready to forward the subcontract to the next person in the Workflow, download, edit and attach this budget analysis to the action required box at the top of the Commitment and be sure to include the agreement.*

  1. Click Submit.
  2. The next person in the workflow is also required to attach the same budget analysis to their action required box before submitting their approval. This is the only way the next person in the workflow can view a comprehensive budget analysis of the Agreement.*

Import from a CSV 

  • If you prefer to upload a CSV to import all line items, please download and populate the provided CSV template instead. Be sure to follow the instructions in the tutorial below to ensure that add your data to the CSV in the correct format because the uploader enforces very strict syntax requirements. Data must follow the prescribed format to ensure that your data can be successfully uploaded into Procore. For example, CSV rows that only contain a Cost Code Name and Cost Code Number will not produce a new line item.
    Notes:
    • The subcontract must be in 'Draft' status in order for the Import from CSV option to be available. 
      For more detailed instructions, see Import a Commitment CSV.
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