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Procore Support (en-au)

Create a Subcontract

Objective

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

Background

Subcontracts can be awarded during both the preconstruction and construction phases of a project and are typically created and tracked in Procore by project management. After a head contract award, the project manager creates purchase orders and subcontracts for specific trades to secure materials and subcontractor services for a project. 

Things to Consider

Prerequisites

Steps

Step 1: Create a Subcontract

  1. Navigate to the project's Commitments tool.
  2. Click +Create and select Subcontract from the drop-down menu.
    create-commitment.png
  3. In the 'General' tab under 'General Information', do the following:
    subcontract-general-tab.png
    • Sign with DocuSign®
      If you have enabled the Procore + DocuSign® integration (see Enable or Disable the DocuSign® Integration on a Procore Project), a checkmark appears in this box by default. If you do NOT want to sign the subcontract with DocuSign®, remove the mark. To learn how to request signatures when the subcontract is ready, see Complete a Commitment Contract with DocuSign®.
    • #
      Enter or validate the unique identifier for the subcontract. If you are creating the first commitment of a project, Procore automatically numbers the commitment in sequential order. For example, SC-01-001, SC-01-002 and so on.
       Notes
    • 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 Var.).
      Notes:
    • Progress Claim Contacts
      Select one (1) or more employees of the 'Contract Company' to designate as the progress claim contact(s). After saving the subcontract, any users added here will be added to the 'Private' list. You must select a 'Contract Company' before you can select progress claim contacts. 
    • Status
      Assign a status to the subcontract. To learn about the available statuses and which commitment statuses reflect contract amounts in your project's budget, see What are the default commitment statuses in Procore? 
    • Executed. Mark 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
      Choose from these options:
      • Make this visible to only administrators and the following users
        Mark this checkbox to limit the visibility of the subcontract to users with 'Admin' on the Commitments tool and users specified in the Select a Person drop-down list. 
      • Allow these users to see SOV items
        Mark this checkbox to allow those users selected in the 'Select a Person' drop-down list to see the 'Program of Values' tab on the subcontract.
         Important
        When the 'Allow these users to see SOV items' is ON, the 'Program of Values' tab is only visible and available to users with 'Admin' level permissions on the project's Commitments tool and the people named in the 'Select a Person' drop-down list. 
      • Select a Person
        Select one or more people from the list. You can 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 under the SOV tab. See Manage Permission Templates.
    • Default Retention
      Specify the percentage amount of retention to withhold on the first subcontractor progress claim. For example, it is a common practice to enter 5 or 10% in this field. 
       Notes
    • Description
      Provide additional information, as necessary.
    • Attachments. Attach any related materials such as pricing quotes, receipts, signed purchase orders and so on. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  4. Scroll to the Contract Dates section and enter the following:
    subcontract-contract-dates.png
    • 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.
  5. Scroll to the Additional Information section and enter the following:
    subcontract-inclusions-exclusions.png
    • 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.
  6. Click one (1) of these buttons:
    • Create. Click this button to save the new subcontract and return to the 'General' tab in view mode. 
    • Create & Enter SOV. Click this button to save the new subcontract and jump to the 'Program of Values' tab in edit mode. Continue by entering the SOV.
    • Complete with DocuSign®. Click this button to complete the subcontract with the DocuSign® integration. See Complete a Commitment Contract with DocuSign®.

Step 2: Enter the Program of Values (SOV)

There are two ways to enter the Program of Values (SOV) on a subcontract:

Import SOV Line Items 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.

Add Line Items to the SOV

 Notes
  • If your company is using the Procore + Integration by Ryvit integration and your Integration by Ryvit system is configured to use the Calculated Method, Integration by Ryvit will NOT allow the use of Lump Sum (LS) as a unit of measurement.
  • If you are using the 'Override Subtotal', you must ONLY input the Subtotal Amount. The Integration by Ryvit integration will then create an 'LS' item in Integration by Ryvit.

 

If you would like to learn more about Procore’s commitments software and how it can help your business, please visit our construction financials tool product page here.