Create Prime Contracts (Beta)

A Prime 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 agreements.

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

After you create an agreement, you can then update its Schedule of Values (SOV). For details, see Update the Schedule of Values on a Prime Contract.

• Required User Permissions:

  • 'Admin' level permissions on the project's Prime Contracts tool.
    OR

  • 'Read Only' or 'Standard' level permissions on the project'sPrime Contracts tool with the 'Create Prime Contracts' granular permission enabled on your permissions template.

• Limitations:

  • Before creating multiple contracts on a project, see Are there any system limitations when creating multiple prime contracts?

  • Because contract data is sensitive, Procore does NOT send automated email notifications to users or distribution lists. Instead, see Email a Prime Contract.

• Add the Prime Contracts tool to Procore's Project Tools menu. See Add and Remove Project Tools.

• Configure the Prime Contracts tool. See Configure Settings: Prime Contracts.

• To use the Procore + DocuSign© integration to sign the contract, complete the steps to Enable the DocuSign© Integration on a Project.

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

• Create a Single Prime Contract

• Create Multiple Prime Contracts

Create a Single Prime Contract

1. Navigate to the project's Prime Contracts tool.

2. Choose from these options:

   • If this is the first contract on the project, click Create Prime Contract on the 'Create a Prime Contract to Get Started' page.
     OR

   • If you have already created at least one (1) prime contract, click Create at the top-right of the page.

3. Continue with the next steps:

   • Add the Basic Contract Information

   • Update the General Information on the Prime Contract

   • Update the Contract Access for the Prime Contract

   • Update the Contract Dates for the Prime Contract

   • Add Inclusions and Exclusions to the Prime Contract

   • Set the Accounting Method for the Prime Contract

   • Update the Prime Contract Schedule of Values

   • Add Line Items to the Prime Contract SOV

   • Import Line Items to the Prime Contract SOV from a CSV File

   • Attach Files to the Prime Contract

Add the Basic Contract Information

Update the basic contract information as follows:

• Number
  To number your contract(s), choose from these options:

  1. If you number your contracts using a sequential numbering system, you can enter any combination of alpha-numeric characters in this box. For subsequent contracts, Procore automatically applies consecutive numbering in ascending order.

     Example

     The examples below show you how Procore's ascending consecutive numbering works:

     • If the previous contract was 1, the next contracts are 2, 3, and so on.

     • If the previous contract was PC-0001, the next contracts are PC-0002, PC-0003, and so on.

     • If the previous contract was DCA00010-12-G-0001, the next contracts are DCA00010-12-G-0002, DCA00010-12-G-0003, and so on.

  2. If you do NOT number your contracts using sequential numbering, you can manually enter a unique number for each prime contract. To do this, type over the existing entry in the Number box. Duplicate contract numbers are NOT permitted.

• Contract Company
  Select the name of the company performing the work or supplying materials for this contract. To appear as a list option, see Add a Company to the Project Directory.

• Title
  Type a descriptive name for the contract.

Update the General Information on the Prime Contract

Update the contract with more general information:

• Status
  Procore automatically assigns contracts the 'Default' status. To select a different status, choose one of the status labels from the drop-down list. Options include Draft, Out for Bid, Out for Signature, Approved, Complete, or Terminated.

   Note

  To create Prime Contract Change Orders (PCCOs) and owner invoices, your prime 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. A fully executed contract is a legally effective agreement that has been signed by authorized representatives for each party.

• Default Retainage
  Enter a number to represent the percentage that will be withheld as retainage on the line items of the contract's Schedule of Values. For example, if you plan to withhold ten (10) percent of the line item's value, enter 10%.

• Contractor
  Select the 'Contractor' from this drop-down list. This is the company that your team hired to perform the work. To appear as a list option, Add a Company to the Project Directory.

• Architect/Engineer
  Select the lead architect or engineer for the project from this drop-down list. To appear as an option in this list, the company must have a record in the Project Directory.

• Description
  Enter a more detailed description of the prime contract. You can apply the options in the formatting toolbar to your text.

Update 'Contract Access' for the Prime Contract

By default, prime contracts are visible to all users with 'Read Only' level permissions or higher on the project's Prime Contracts tool. To change its access permissions, do the following on the 'Contract Access' card:

1. Optional: Move the Restrict This Contract's Visibility to Only Project Admins and Select Non-Admin Users toggle to the left or right to turn the restriction OFF and ON. Procore turns this setting ON by default.

    Notes

   • The toggle is BLUE when restrictions are turned ON.

   • The toggle is GRAY when restrictions are turned OFF.

2. Optional: To provide users with 'Read-Only' or 'Standard' level permissions on the project's Prime Contracts tool with access to the contract, select the person's name from the Access for Non-Admin Users drop-down list. To appear as an option in this list, a user must have a profile in the Project Directory.
   
   Optional: To provide the users in the 'Access for Non-Admin Users' list with access to view the Schedule of Values, mark the Allow These Non-Admin Users to View the SOV Items checkbox.

Update the Contract Dates for the Prime Contract

To update the prime contract with important dates, do the following:

• 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 Prime Contract Change Order (PCCO) when each change order is 'Approved.'

• Actual Completion Date
  Select the construction project's actual completion date.

• Contract Date
  Select the contract date from the calendar control.

• Signed Contract Received Date
  Select the date from the calendar control. The signed contract received represents the date that the executed contract was received.

• Execution Date
  Select the date from the calendar control. The execution date represents the date the agreement was signed by authorized representatives of all contract parties.

• Issued On Date
  Select the date from the calendar control. The issued on date represents the date the contractual agreement was issued to both parties.

• Returned Date
  Select the date from the calendar control. The returned date is the date the contract was returned.

• 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 prime where all parties have met all contractual obligations and terms.

• Delivery Date
  Select the date from the calendar control.

Add Inclusions and Exclusions to the Prime Contract

Contract inclusions and exclusions vary from project to project. However, the intent is to define exactly what is included and NOT included in the contract's price and scope of work. To update the contract's 'Inclusions and Exclusions' card, do the following:

• Inclusions
  Add the contract's inclusions in this box. You can apply the options in the formatting toolbar to your text.

• Exclusions
  Add the contract's exclusions in this box. You can apply the options in the formatting toolbar to your text.

Set the Accounting Method

The first step when updating a Schedule of Values is to define the accounting method for the contract. The method you choose also applies to all change orders and/or invoices for that contract. The accounting method can only be changed BEFORE you add line items to an SOV. Procore does NOT permit you to change a contract's accounting method after line items are added.

• To change the accounting method to Unit/Quantity, click the Change to Unit/Quantity button.

• To change the accounting method back to Amount-Based, click the Change to Amount Based button.

Update the Prime Contract Schedule of Values

By default, you can input line items on the contract's SOV at any time, as long as the contract is NOT in the 'Approved' status.

Add Line Items to the Prime Contract SOV

To manually add line items to the prime contract's SOV:

1. Choose from these options:

   • If the SOV is blank, click Add Line under 'You Have No Line Items Yet'.
     OR

   • If you have existing line items, click Add Line.
     Procore creates new line items starting with the number '1'. Subsequent lines are created in numerical order.

2. Designate a budget code for the new line item. You have these options:

   • To assign an existing budget code to the line item, start typing a code in the Search box and select the matching code from the list.
     OR

   • To create a new budget code for the line item, click the Create Budget Code button. Next, select the appropriate segment items from the drop-down list(s) to satisfy your project's budget code pattern requirements. Then, click Create.

3. Depending on the accounting method you are using, choose the appropriate steps for adding a line item:

   • For an Amount-Based contract:
     An Amount-Based SOV requires this data entry:

     1. Budget Code
        Select a budget code or click Create Budget Code. See What is a budget code in Procore's WBS?

     2. Description
        Enter a description for the line item. For example, type: Monthly Service Fee

     3. Amount
        Enter the total amount for the line item.

     4. Billed to Date
        Later, when you create invoices, this column will automatically show the amount that has already been billed to date.

     5. Amount Remaining
        Later, when you create invoices, this column will automatically show the amount that has NOT yet been billed to date.

   • For a Unit/Quantity Based contract:
     A Unit/Quantity Based SOV requires this data entry:

     1. Budget Code
        Select a budget code or click Create Budget Code. See What is a budget code in Procore's WBS?

     2. Description
        Enter a description for the line item. For example, type: Monthly Service Fee

     3. Qty
        Enter the number of units.

     4. UOM
        Select the Unit of Measure (UOM) from the list. See Which units of measure are included on Procore's master list? and Add a Unit of Measure to the Unit of Measure Master List.

     5. Unit Cost
        Enter the Unit Cost in this box. You'll notice that the value in this column contains four (4) decimal points (for example, $0.0000) to allow you to enter the specific value required to calculate accurate pricing.
        

        Example

        If you are buying 50,000 units for $1,006,625.00, you would enter a unit price of $20.1325.

     6. Amount
        The system automatically calculates the subtotal for you, based on the Qty, UOM, and Unit Cost entries.

     7. Billed to Date
        Later, when you create invoices, this column will automatically show the amount that has already been billed to date.

     8. Amount Remaining
        Later, when you create invoices, this column will automatically show the amount that has NOT yet been billed to date.

4. Optional: Repeat the steps above to add as many line items as needed.

5. Click Save.
   Procore saves the line items on the contract's SOV.

Import Line Items to the Prime Contract SOV from a CSV File

1. In the 'Schedule of Values' card, click the Import SOV from CSV button.
   

2. Click the Download CSV Template button and choose one of these options:

   • Blank Template. Click this option to download a blank template.
     OR

   • Template with Existing Line Items. Click this option to download a template that includes any existing line item data from your project's budget.

      Note

     • Procore downloads a CSV template file to your web browser's file download location.

     • The name of the file is: Prime Contract SOV Template.csv

3. Open the template that you downloaded on your computer.

4. Enter the data that you want to upload directly into the template.

    Important

   Do NOT change or rearrange the Column Headings in the template file.

5. After entering your line item data, make sure to save your file updates in the 'Comma Separated Values' file format.

6. Navigate back to Procore. Then, in the 'CSV File' section, choose one of these options:

   • Click Upload File.
     OR

   • Use a drag-and-drop operation to move the template you just updated into the 'CSV File' section.

7. Choose one of these options:

   • Add Additional Line Items. Choose this option if you want to create new line items using the data in your template.
     OR

   • Replace Existing Line Items. Choose this option if you want to erase any existing line items from the prime contract and replace them with data in your template.

8. Click Import.

Attach Files to the Prime Contract

To add file attachments to a prime contract:

1. On the 'Attachments' card, click Edit.

2. Click Attach Files.

3. In the Attach Files dialog box, highlight the location where the files to upload are stored. Options include:

   • My Computer. Click Upload Files to open your computer's finder. Select the files to upload and click Open.

   • Photos. If the Photos tool is active on the project, choose the location from the Select Album list and then search for the file(s) to upload.

   • Drawings. If the Drawings tool is active on the project, choose the area from the Select Area list and then search for the file(s) to upload.

   • Forms. If the Forms tool is active on the project, choose the template from the Select Template list and then search for the file(s) to upload.

   • Documents. If the Documents tool is active on the project, navigate to the folder storing the file(s) to upload and then highlight them.

4. Click Attach.
   
   A progress indicator shows you the status of the upload.

5. Click the Close (X) icon on the Attach Files dialog box.

Repeat the steps in Create a Single Prime Contract above for each new prime contract.