Skip to main content
Procore Support (en-au)

Create Head Contracts

Objective

To create a single head contract or multiple head contracts for a Procore project. 

Background

A head contract is a formal, legal agreement between a construction project owner and a contractor. In this relationship, the project owner is typically the contracting authority who initiates the agreement, possesses the rights to develop a property and finances the project. The contractor (also called the head contractor, main contractor or head contractor) is hired by the project owner and accepts responsibility and liability for completing the construction project. The contractor also enters into other agreements with subcontractors, called commitments in Procore, in order to complete the project's work. 

If your company has purchased Procore to manage your construction projects, you can create one (1) or more head contracts for each new construction project. 

Examples

When to Create a Single Head Contract

Most Procore customers who manage their construction projects in Procore create a single head contract for a single construction project. If you are a head contractor, creating a single head contract is the simplest way to manage a construction project when it has a single project owner and a single funding source. 

When to Create Multiple Head Contracts

If a project has multiple owners, multiple funding sources and/or multiple project delivery methods, you can also choose to create multiple head contracts for a single project. If you choose to create multiple head contracts in a single Procore project, there are some limitations. For details, see Are there any system limitations when projects have multiple head contracts? Reasons for choosing to create multiple head contracts include: 

  • Multiple Funding Sources. A project can have multiple owners, each of whom provides an amount of the project funding. For example, a person, a company, a public authority or a combination of all these examples. See Configure Advanced Settings: Head Contracts
  • Multiple Stages. A project can be portioned into stages. For example, you might require separate head contracts for pre-construction, course of construction and aftercare/maintenance.
  • Multiple Phases. A project can be portioned into phases. For example, you might require separate head contracts for the foundation, plumbing, HVAC and so on.
  • Guaranteed Maximum Price (GMP) Contracts. A project can be fast-tracked or a phased GMP job. For example, you might require multiple head contracts for each established scope-of-work package.
  • Construction Manager as Advisor (CMa) Delivery Methods. A head contractor operating as a CMa might need to manage multiple head contracts between an owner and various contractors.

After you create a head contract, you can then update its Program of Values (SOV). For details, see Update the Program of Values (SOV) on a Head Contract.

 Tip

Is your project's head contract SOV similar to the line items on your project's budget? If so, Procore recommends creating the project's budget before the head contract. This allows you to use the Head Contracts tool's import features to quickly Create the Head Contract SOV from the Project Budget which eliminates repetitive data entry. 

Things to Consider

  • Required User Permissions:
    • To create head contracts:
      • 'Admin' level permissions on the project's Head Contracts tool.
        OR
      • 'Read Only' or 'Standard' level permissions on the project's Head Contracts tool with the 'Create Head Contracts' granular permission enabled on your permission template.
  • Limitations:
  • Before creating multiple head contracts on a project, see Are there any system limitations when creating multiple head contracts?
  • Because head contract data is sensitive, Procore does NOT send automated email notifications to users or distribution lists. If you need to send a head contract to another user by email, see Email Head Contract.
  • Additional Information:
    • Most general contractors use the project's Budget tool to manage costs and contracts with subcontractors. Access to the Budget tool is typically limited to restrict the client or owner financing the project from seeing the budget. 
    • If your project's budget and head contract are identical (or if the head contract is a division-level summary of the budget), you can use your budget to create your head contract. 
    • You can add multiple line items with the same cost code and cost type assignments. To distinguish between line items, enter a descriptive summary in the Description field.
    • If you do not want to enter a cost code for a line item, you can enter 'None.'

Prerequisites

Steps

In Procore, you have the option to create a single head contract or multiple head contracts as described below:

After you have created one or more head contracts, continue with Update the Program of Values on a Head Contract.

Create a Single Head Contract

  1. Navigate to the project's Head Contracts tool.
  2. Click the Create button.

    create-a-single-head-contract.png
     
  3. In the General tab, under General Information, do the following:
     Note
    • There are no required fields when creating a new head contract.
    • If you click the Create button without completing any data entry, Procore saves the head contract, lists you as its creator and places it in the Draft status.
    • Sign with DocuSign©
      If the Procore + DocuSign© integration is enabled, a checkmark appears by default. Clear the checkmark from the box if you do NOT want to collect signatures with DocuSign©
    • Contract #
      Accept the default contract number, enter a new number for this contract or create a custom numbering scheme for this contract and future contracts.
       Note
      • If you plan to create multiple head contracts, Procore automatically assigns new contract numbers in sequential order. For example; 1, 2, 3 and so on. 
      • To use a custom numbering scheme, enter any set of alphanumeric characters and Procore automatically assigns new contract numbers in sequential order using your custom scheme. For example, enter PC-1, PC-01 or PC-001. 
    • Title
      Enter a descriptive name for the head contract.
    • Owner/Client
      Select the project owner/client from the drop-down list.
    • Architect/Engineer
      Select the lead architect for the project from the drop-down list.
    • Contractor
      Enter the company name of the primary contractor managing the construction project. If you are setting up the head contract, this will typically be your company's name. 
    • Status
      Select the current status for the head contract. Options include Draft, Out for Tender, Out for Signature, Approved, Complete, or Terminated.
      Note: 
      To create variations and progress claims, a head contract's status must be set to Approved or Complete.
    • Executed
      Place a mark in this check box if the contract has been fully executed.
    • Make this Visible Only to Administrators and the Following Users
      Place a mark in this check box to limit visibility to users with 'Admin' permission and any users designated in the 'Allow These Users to See SOV Items' checkbox.
    • Allow These Users to See SOV Items
      Mark this check box and use the 'Select a Person' drop-down list to select any project users with 'Read Only' or 'Standard' level permissions on the Head Contracts tool.
    • Default Retention. Enter a percentage to represent the retention amount for your contract's SOV line items. For example, enter: 10%
    • Description
      Enter a more detailed description of your head contract.
    • Attachments
      Attach any relevant files to your head contract. For example, you might want to attach a digital copy of your signed head contract.
  4. Under Contract Dates, do the following:
     Note
    An asterisk (*) below denotes a field that may be configured to show or hide in your project environment. For instructions, see Configure Settings: Head Contracts.
    • Date Created
      Shows the date the contract was created. You cannot change this date.
    • Start Date
      Select the construction project's official start date.
    • Estimated Completion Date
      Select the construction project's estimated completion date from the calendar control. 
    • Substantial Completion Date*
      Select the construction project's substantial completion date from the calendar control. 
       Tip
      If the 'Substantial Completion Date' field is available on your project, keep in mind that Procore automatically updates the 'Substantial Completion Date' to match the 'Revised Substantial Completion Date' from each Head Contract Variation (HCV) when each variation is 'Approved'.
    • Actual Completion Date
      Select the construction project's actual completion date.
    • Contract Date*
      Select the date from the calendar control. This represents the effective date of the contractual agreement. This is the date the contract goes into force. 
    • Signed Contract Received Date
      Select the date from the calendar control. This represents the date that the executed contract was received.
    • Execution Date*
      Select the date from the calendar control. This represents the date the agreement was signed by all parties. 
    • Issued On Date*
      Select the date from the calendar control. This date represents the date the contractual agreement was issued to both parties.
    • Returned Date
      Select the date from the calendar control. 
    • Letter of Intent Date
      Select the Letter of Intent (LOI) date from the calendar control. 
    • Approval Letter Date*
      Select the Letter of Approval (LOA) date from the calendar control.
    • Contract Termination Date
      Select the date from the calendar control. A contract termination date is a date outlined in the head where all parties have met all contractual obligations and terms.
  5. Under Additional Information, do the following:
    • Inclusions. Specify any agreed-upon inclusions in the contract.
    • Exclusions. Specify any agreed-upon exclusions in the contract. 
  6. Choose from these options:
    • If you have not yet created the contract, click Create or Create & Email.
      OR
    • If you are updating an existing contract, click Save or Save & Email.

Create Multiple Head Contracts

 Important
If you want to create multiple head contracts on a project, see What are the limitations when creating multiple head contracts? 

You can repeat the steps above for each head contract that you want to create in the project's Head Contracts tool. See Create a Single Head Contract

 Note

Reasons to create multiple head contracts include:

  • There are multiple entities funding the job. Your project may have multiple owners or the head contractor might be partially funding the job themselves.
  • There are contracts established for each stage of construction: pre-construction, course of construction and aftercare/maintenance.
  • When operating a fast-tracked or phased GMP contract, a head contract can be created for each established scope-of-work package.
  • A contractor who is operating as a CMa and needs to manage the contracts that an owner has with various contractors on a project.