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Create a Subcontract (Legacy)

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 Legacy Content

This tutorial details Procore's legacy experience for creating a subcontract. The information on this page will be replaced with updated content when the redesigned commitments beta experience is generally available. To learn about this release and its timeline, see Project Financials: Modernized Experience for Commitments.

Important! If you are using the commitments beta experience, please see the Create Subcontracts tutorial instead of the information below. 

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 collect signatures with DocuSign®, remove the mark.
    • Number #
      Accept the default number, enter a new number or create a custom numbering scheme.

      For companies using the icon-erp-synced2.png ERP Integrations tool: 

      • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
        • Your integrated ERP system may impose a maximum character limit.
        • Prerequisites, limitations, and considerations might apply depending on the ERP system your Procore account is integrated with. Visit Things to Know about your ERP Integration for details.
       Tip
      How are numbers assigned? To learn how Procore assigns numbers and to understand your custom numbering options, see Can I customise the numbering system for financial objects 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:
    • 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. 
       Note
      It is important to always add at least one  'Invoice Contact' on a purchase order or subcontract. This ensures that important email invitations and automatic email notifications are sent to the appropriate contact. To learn more about the importance of including progress claim contacts on your commitments, see What is a progress claim contact? 
    • 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
      Mark the checkboxes and choose any project users or collaborators from the 'Select a Person' list. To learn more about the privacy options, see Change the Privacy Settings for a Commitment.
      • Make this visible to only administrators and the following users
        Mark this checkbox to limit the visibility of the purchase order to users with 'Admin' on the project's Commitments tool and users specified in the 'Select a Person' drop-down list. 
      • Allow these users to see SOV items
        Mark this checkbox in this box to limit the visibility of the Schedule of Values (SOV) items on the purchase order to users with 'Admin' on the project's Commitments tool and users specified in the 'Select a Person' drop-down list. 
    • 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.
       In Beta
      Note to users participating in the Site-initiated Variations' limited release beta program. The information below details a configuration that is available to Procore users taking part in the Beta Participant Program for Site-initiated Variations. For more information about this release, see Commitments: Allow Collaborators to Submit Site-initiated Variations. 
    • 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 'Schedule 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 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. Under the Contracts tab, locate the commitment to update. Then click Edit.
  3. Click Schedule of Values.
  4. Click Add Line.
     Note
     If the 'Enable Always Editable Schedule of Values' setting is turned ON in the Commitments tool, users with the required user permission to Edit a Commitment can modify the Schedule of Values while a commitment is in any status. To learn more, see What is the 'Enable Always Editable Schedule of Values' setting?
  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 or funding?
    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 list or click Create Budget Code to create a new one. See What is a budget code in Procore's WBS? 
      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 in Procore's WBS? 
      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 Qty, UOM, 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 changes to the SOV. 
    • Save & Email. Click this button to save the change to the SOV and email the updates to the progress claim contact.