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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

A Subcontractor is a legal agreement where a party on a head contract engages a third-party (the subcontractor) to perform all or part of the work defined in the head contract.

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.
  3. Under General Information, do the following:
    • 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 commitment with DocuSign®, remove the checkmark. 
    • #
      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 Co.).
      Notes:
    • Invoice Contacts
      Select one (1) or more employees of the 'Contract Company' to designate as the invoice 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 invoice contacts. 
    • Status
      Assign a status to the subcontract. The descriptions below describe how a subcontract's status displays in the project's budget. It is assumed you are using the Procore Standard Budget View. To learn more about budget views, see Set up a New Budget View.
      • Draft. This is the default status when you create a commitment. 
      • Out for Tender. Indicates the subcontractor is out for tender. 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. 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 'Schedule of Values' tab on the subcontract.
         Important
        When the 'Allow these users to see SOV items' is ON, the 'Schedule 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 to individual line items under the SOV tab. See Manage Permission Templates.
    • Default Retainage
      Specify the percentage amount of retainage to withhold on the first subcontractor invoice. For example, it is a common practice to enter 5 or 10% in this field. 
       Notes


      invoicecontacts.png
    • Description
      Provide additional information, as necessary.
  4. Under Contract Dates, do the following:
    • 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. Under Additional Information, do the following:
    • 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, and so on. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  6. 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.
    • If 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.

Step 2: Enter the Schedule of Values (SOV)

There are two ways to enter the Schedule 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.
  1. Navigate to the project's Commitments tool.
  2. Beta Under the Contracts tab, locate the purchase order or subcontract. Then click Edit.
  3. Click Schedule of Values.
  4. Click Add Line.
  5. Follow the appropriate steps depending on whether your accounting method is Amount Based or Unit/Quantity Based:
     Note
    To edit your accounting method before adding SOV line items, see Edit the Advanced Settings Tab on a Commitment. To learn more, see How do I set the accounting method for a contract?
    1. For contracts using the Amount Based accounting method:
      1. #
        Automatically enters a line item number in sequential order. 
      2. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      3. Budget Code
        Select a budget code from the or click Create Budget Code to create a new one. See What is a budget code?
      4. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      5. Amount
        Enter the amount of the cost.
      6. Billed to Date
        The system automatically calculates the amount billed on the commitment up to the current date.  
      7. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      8. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    2. For contracts using the Unit/Quantity Based accounting method:
      1. #
        Automatically enters a line item number in sequential order. 
      2. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      3. Budget Code
        Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code?
      4. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      5. Qty
        Enter the number of units.
      6. UOM
        Enter the Unit of Measure (UOM).
         Notes
      7. Unit Cost
        Enter the Unit Cost in the box provided.
      8. Amount
        The system automatically calculates the subtotal for you, based on the QtyUOM, and Unit Cost entries. 
      9. Billed to Date
        The system automatically calculates the amount billed on the commitment up to the current date. 
      10. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      11. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
  6. Choose one of these options:
    • Save. Click this button to save the SOV. 
      OR
    • Save & Email. Click this button to save the SOV and send the invoice to the invoice contact by email. 

 

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.