To create one (1) or more head contracts for a Procore project.
A Head Contract is a legal agreement between contracted parties. In a single, two-party contract, the party financing the construction project is called the client, owner, or principal. The party being paid to ensure completion of work is called the general, primary or main contractor. In Procore, you can either create a single contract for a single construction project or--if it is a larger contract or if you have multiple funding sources or clients--you might choose to divide the scope of work for a single project into multiple contracts.
If your company has purchased Procore to manage your construction projects, you can create one (1) or more contracts for each new construction project.
When to create a single head contract
Most customers who manage their construction projects in Procore create a single contract for a single project. For example, if you are a head contractor, creating a single contract is the simplest way to manage a construction project when it has a single project owner and a single funding source. If you are an owner/developer or an internal head contractor with an upstream approval requirement, you might choose to create a single head contract to handle the upstream contract and progress claims.
When to create multiple head contracts
If a project has multiple owners, clients, funding sources, and/or project delivery methods, you can also choose to create multiple contracts for a single project. If you choose to create multiple 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 to create multiple contracts include:
- Multiple Clients and Funding Sources. A project can have multiple funding sources or multiple clients. For example, a speciality contractor might choose to create a separate head contract for each client. Or your construction company might have been contracted to complete work on a project with more than one funding stream, such as a private donor, a public grant, a public authority, bonds, grants, loans or a combination of all these examples. See Configure Advanced Settings: Head Contracts.
- Multiple Stages. A project can be divided into stages. For example, you might require separate 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 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 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 contracts between an owner and various contractors.
Is the Schedule of Values on the contract similar to the line items on the project's budget? If so, Procore recommends creating the project's budget before the contract. To eliminate repetitive data entry, you can use the Head Contracts tool's import feature to Create the Head Contract Schedule of Values from the Project Budget.
Things to Consider
- Required User Permissions:
- 'Admin' level permissions on the project's Head Contracts tool.
- 'Read Only' or 'Standard' level permissions on the project's Head Contracts tool with the 'Create Head Contracts' granular permission enabled on your permissions template.
- 'Admin' level permissions on the project's Head Contracts tool.
- Before creating multiple contracts on a project, see Are there any system limitations when creating multiple head contracts?
- Because contract data is sensitive, Procore does NOT send automated email notifications to users or distribution lists. If you need to send a contract to another user by email, see Email a 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.
- 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.'
- Add the Head Contracts tool to Procore's Project Tools menu. See Add and Remove Project Tools.
- Configure the Head Contracts tool. See Configure Settings: Head Contracts.
- To use the Procore + DocuSign© integration to sign the contract, complete the steps to Enable the DocuSign© Integration on a Project.
With the required user permissions, you can create one (1) or multiple contracts on a Procore project.
ImportantBefore creating multiple contracts, read Are there any system limitations when projects have multiple head contracts?
- Navigate to the project's Head Contracts tool.
- Click Create.
- In the General tab, under General Information, do the following:
- There are no required fields when creating a new contract.
- If you click the Create button without completing any data entry, Procore saves the 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.
- If you plan to create multiple contracts, Procore 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. Procore assigns numbers in sequential order using your scheme. For example, enter PC-1, PC-01 or PC-001.
Enter a descriptive name for the contract.
Select the project owner or client from the drop-down list.
Select the lead architect for the project from the drop-down list.
Enter the company name of the primary contractor managing the construction project. If you are setting up the contract, this will typically be your company's name.
Select the current status of the contract. Options include Draft, Out for Tender, Out for Signature, Approved, Complete or Terminated.
Note: To create variations and progress claims, a contract's status must be set to Approved or Complete.
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 select one (1) or multiple users who have 'Read Only' or 'Standard' level permissions on the Head Contracts tool from the drop-down list.
- Default Retention
Enter a percentage amount to represent the retention amount for your contract's SOV line items. For example, enter: 10%
Enter a more detailed description of your contract.
Attach any relevant files to your contract. For example, you might want to attach a digital copy of your signed contract.
- Under Contract Dates, do the following:
NoteAn asterisk (*) below denotes a field that may be configured to show or hide in your project environment by an administrator on the Configure Settings page.
- 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.
TipIf the 'Substantial Completion Date' field is configured on your project, Procore automatically updates the value in the 'Substantial Completion Date' column to match the 'Revised Substantial Completion Date' from each Head Contract Variation (CCV) after 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 contract, which 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 contract was signed by all parties.
- Issued On Date*
Select the date from the calendar control. This date represents the date the contract 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 when all parties have met the contract's obligations and terms.
- Date Created
- Under Additional Information, do the following:
- Inclusions. Specify any agreed-upon inclusions in the contract.
- Exclusions. Specify any agreed-upon exclusions in the contract.
- Click Create or Create & Email.
NoteIf you clicked create earlier in this process, the Create and Create & Email button's labels are Save and Save & Email.
Repeat the steps above to create additional contracts.