A main 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 main contractor, main contractor or main 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 main contracts for each new construction project.
When to Create a Single Main Contract
Most Procore customers who manage their construction projects in Procore create a single main contract for a single construction project. If you are a main contractor, creating a single main 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 Main Contracts
If a project has multiple owners, multiple funding sources and/or multiple project delivery methods, you can also choose to create multiple main contracts for a single project. If you choose to create multiple main contracts in a single Procore project, there are some limitations. For details, see Are there any system limitations when projects have multiple main contracts? Reasons for choosing to create multiple main 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: Main Contracts.
- Multiple Stages. A project can be portioned into stages. For example, you might require separate main 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 main 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 main contracts for each established scope-of-work package.
- Construction Manager as Advisor (CMa) Delivery Methods. A main contractor operating as a CMa might need to manage multiple main contracts between an owner and various contractors.
After you create a main contract, you can then update its Programme of Values (BOQ). For details, see Update the Programme of Values (BOQ) on a Main Contract.
Is your project's main contract BOQ similar to the line items on your project's budget? If so, Procore recommends creating the project's budget before the main contract. This allows you to use the Main Contracts tool's import features to quickly Create the Main Contract BOQ from the Project Budget which eliminates repetitive data entry.
Yes. When using the Main Contracts tool to create multiple main contracts on a single construction project, please be aware of these limitations:
- While you can import budget line items to a Main Contract's Programme of Values (BOQ), you do NOT have the ability to choose which budget line items that you want to import
Please be aware that you must import all of a budget's line items to each main contract. Because most customers with multiple main contracts typically only want to import certain line items from their budget, use caution before using the project budget to create your main contract's SOVs (see Create a Main Contract BOQ from the Project Budget). Doing so can lead to a need to delete the unwanted line items from each main contract's BOQ. To avoid this extra step, Procore recommends that you choose a different method to add line items to the main contract's BOQ. For more information, see Update the Programme of Values on a Main Contract.
- You will be limited to one (1) set of granular permissions for each project
Procore does NOT support the creation of unique granular permissions for each contract on a project. See Grant Granular Permissions in a Permission Template.
- You will NOT be able to sort, add filters or group report data from the Main Contract tool in other tools
You will NOT be able to sort change events by each main contract in the Change Events list page. To workaround this limitation, Procore recommends building a custom project report to show financial data that is sorted, filtered or grouped by it's respective main contract. See Create a Custom Project Report.
- You will NOT have the ability to map your commitments or automatically complete cost data
You will not be able to map purchase orders and subcontracts to more than one main contracts. The system will also be restricted from automatically completing cost data. If the same cost code & cost type combination is used on more than one (1) main contract, the system will not be able to automatically complete the direct cost amount and/or subcontractor payment application amount to your owner payment application. To avoid this limitation, you can create a unique billing period or sub job for each main contract.