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Procore (en-GB)

Configure Settings: Commitments

Objective

To configure settings for your project's Commitments tool.

Background

Users who have been granted 'Admin' permission can customise the Commitment tool's advanced settings at the beginning of the project. These settings define how the Commitments tool works for your end users. For example, you can select which users are on the tool's default distribution list, whether or not a commitment is set to 'Private' by default and more. Unless noted otherwise, settings can be adjusted at any time over the course of a project. 

 Important
Before your project users start creating commitments, it is important to ensure the setting for the Number of Commitment Variation Tiers is as you want it. To learn more, What are the different variation tiers? After a user creates one (1) commitment variation on the project, you cannot change the number of variation tiers on the project. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Commitments tool.

Steps

Contract Configuration

  1. Navigate to the project's Commitments tool.
  2. Click Configure Settings .
  3. Under Contract Configuration, do the following:

    contract-configuration-settings.png
     
    1. Contracts Private by Default
      Place a mark in this checkbox to set new subcontracts to Private by default. This is the default setting.
      Notes:
      • A 'Private' commitment is only visible to users with 'Admin' permission on the Commitments tool and users added to the 'Private' list on the General tab of the commitment.
      • Remove the mark to make commitments visible to users with 'Read Only' permission or above. 
    2. Enable Purchase Orders
      Place a mark in this checkbox to provide users with the ability to create purchase orders. This is the default setting.
      Remove the checkmark to prevent users from creating purchase orders.
    3. Enable Contracts
      Place a mark in this checkbox to provide users with the ability to create subcontracts. This is the default setting. Remove the checkbox to prevent users from creating subcontracts. 
    4. RFQs Will Be Due After
      Specify the number of working days to identify the due date for a response to an RFQ. To learn more, see Respond to an RFQ as an RFQ Recipient.
      Notes:
      • The default value for the RFQ due date is seven (7) working days. You can adjust change this setting as needed on each individual commitment.
      • Your company's Procore Administrator can also set which days of the week the system considers as its working days. For details, see Set Project Working Days.
    5. Number of Commitment Variation Tiers
      Select one of these options:
      • One tier (Commitment Variation). See What are the different variation tiers?
      • Two tiers (Potential Variation > Commitment Variation).
      • Three tiers (Potential Variation > Variation Request > Commitment Variation).
         Important

        Best practices for the change management process:

        • Always select a variation tier setting before you start creating commitments.
        • Once a user creates a commitment on your project, you are NOT permitted to modify your variation tier setting. 
    6. Allow Standard Level Users to Create PCOs
      Place a mark in this checkbox to allow users with 'Standard' permissions to create Potential Variations. If the tick is removed, only 'Admin' permissions will have the ability to create PCOs.
      Note: This option is only available when you select 2 or 3 Tiers for commitment variations.
  4. Under Contract Dates, do the following:

    contract-dates.png
     
    1. Place a mark in any of these checkboxes:
      Note: You can enable contract dates to help determine when to start the warranty period or to determine the date when the owner takes responsibility of the project (e.g., for utilities, insurance and/or security of the property), and to determine when the main contractor and subcontractor(s) are entitled to payment of the contract balance.
      • Enable Approval Letter Date
        Enable this setting if your company sends a letter to approve and accept the details of construction work. 
      • Enable Contract Date
        Enable this setting if you want users to log the effective date of the contract. 
      • Enable Issued on Date
        Enable this setting if you want users to log the date the contract was issued. 
      • Enable Execution Date
        Enable this setting if you want users to log the date the contract was signed by all the necessary parties. 
      • Enable Letter of Intent Date
        Enable this setting if you want users to log the date your company sent a Letter of Intent (LOI) to outline the details of a contract between the necessary parties before the contract is finalized. 
      • Enable Returned Date
        Enable this setting if you want users to log the date a contract was returned. 
  5. Under Default Distributions, do the following: 

     default-distributions.png
     
    1. Include Primary Contact in Default Distribution
      Place a tick in this box to automatically include the person listed as the company's Primary Contact in the Directory tool in the default distribution list. Note: To be included on the distribution list, the vendor record must have a designated primary contact in the Company Directory. See Add a Person to the Company Directory.
    2. Commitment Distribution
      Select a user(s) that should always be added to the commitment's distribution list by default when a commitment is emailed.
    3. Commitment Variation Distribution
      Select a user(s) that should always be added to a commitment variation's distribution list by default when a commitment variation is emailed.
    4. Request for Quote Distribution
      Select users to be notified when RFQ responses are submitted.
      Note: You have the ability to also modify the Request for Quote distribution within the RFQ.
    5. Payment Application Distribution
      When a payment application or the subcontractor BOQ is submitted for a commitment, the user(s) listed in the Payment Application Distribution list will receive an email when the status of either the Payment Application or the subcontractor BOQ is set to Under Review.
  6. Under Default Contract Settings, do the following:

    default-contract-settings.png
     
    1. Default Accounting Method for Purchase Orders
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Unit/Quantity Based.
    2. Default Accounting Method for Contracts
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Amount Based.
    3. Default Retention Percent
      Specify a default retention percent (e.g. 10%) that will automatically be set by default.
       Caution
      If your company has enabled the  sliding scale retention settings for use on your payment applications, keep in mind that the 'Default Retention Percent' setting is overridden when performing invoicing. See Enable Sliding Scale Retention Rules on a Commitment's Payment Applications
    4. Enable Comments By Default
      Mark this checkbox to enable a "Comments" subtab where users can add comments and attach files. It's unchecked by default. 
    5. Enable Markup By Default
      If enabled, you will see the Financial Markup subtab, so you can set up and apply markup for each commitment. Variations will automatically be associated with the correct cost code so changes are accurately reflected in the Budget tool.
    6. Enable Payments By Default
      To prevent users from being able to create payments, leave this box unchecked. It's checked by default.
    7. Enable Payment Applications by Default
      If enabled, you will see the Payment Applications subtab so that payment applications can be created. To prevent users from being able to create payment applications, leave this box unchecked. It's checked by default.
    8. Show Cost Codes on Payment Application PDF by Default
      Place a tick in this box to show cost codes on payment application PDFs by default. 
    9. Enable Completed Work Retention By Default
      Place a tick in this box to enable completed work retention by default.
    10. Enable Stored Material Retention By Default
      Place a tick in this box to enable stored material retention by default.
    11. Enable Subcontractor BOQ by Default
      Place a tick in this box to enable a subcontractor BOQ by default for commitments. 
  7. Click Update to save your changes.

Payment Application Settings

  1. Navigate to the project's Commitments tool.
  2. Click the Configure Settings  icon.
  3. Click Payment Application Settings.
  4. Under Default Billing Period, do the following:
    payment application-settings-billing-period.png
    1. Start Date
      Select a day of the month from the drop-down menu to set the start of the billing period on the payment application. The default setting is 1st of the Month.
    2. End Date
      Select a day of the month from the drop-down menu to set the end of the billing period on the payment application. The default setting is 31st of the Month
    3. Due Date
      Select a day of the month from the drop-down menu to set the date by which a subcontractor must create an payment application. The default setting is 15th of the Month
      Notes:
      • This setting only requires subcontractors to create a payment application by the due date. See Create and Submit a Payment Application as a Subcontractor.
      • This setting does NOT require subcontractors to submit a payment application by the due date.
      • After the due date, subcontractors can no longer create an payment application. Instead, a user with 'Admin' permission must follow the steps in Create a Payment Application on Behalf of a Subcontractor.
      • A subcontractor can edit and submit a payment application at anytime as long as it is in the Draft or Revise & Resubmit status. 
  5. Under Emails, do the following:
    payment application-settings-emails.png
    1. Invitation & Reminder Custom Message
      Enter the text that you want to appear in the body of the invitation and reminder messages that the system sends to your subcontractors who will be creating and submitting an a payment application.  Emails are sent to the payment application contacts added to a commitment. See Add Payment Application Contacts to a Commitment.
    2. Remind Subcontractors to Bill
      Set the toggle to the ON position to send reminder emails after sending billing invitations. 
    3. Frequency
      Set the toggle to the ON position to set the frequency for reminder emails. Then choose the frequency from the drop-down list. Options include: Every Day, Every 2 Days or Every 3 Days.
    4. Send a Digest of Under Review payment applications
      Set the toggle to the ON position to send a weekly digest email that summarises payment applications with the status of Draft, Under Review, or Revise and Resubmit
    5. Notify Subcontractors when payment applications are Approved
      Set the toggle to the ON position to send notification emails to subcontractors when a payment application status is set to Approved or Approved as Noted.
  6. Under Other, do the following:
    payment application-settings-other.png
    1. Sub Payment Application PDF Footer Text
      Enter any text that you want to appear on PDF copies of your payment application's footer. Typically, this is used to insert a compliance statement with local regulations. 
      Notes:
      • Text only appears in the footer when the PDF export is performed by a user with 'Admin' permission on the Invoicing tool. 
      • Text does NOT appear in the PDF footer when the export is performed by a user with 'Standard' or 'Read Only' permission. 
    2. Show Amounts Subcontractors Claim​​​​​​​
      If you enable this setting, main contractors will be able to differentiate between what a subcontractor claims and what the main contractor approves.
       Note
      For Procore users in Australia and New Zealand, enabling this setting also gives users with 'Admin' permission the ability to create a payment programme PDF in response to subcontractor's payment application. See Review Payment Applications as an Admin.  To learn more, see Create a Payment Programme.
      The following items are included in the PDF:
      • Total Claimed Amount (excluding retention)
        Note: This field pulls from the Subcontractor Claimed This Period column of the payment application detail.
      • Total Approved Amount (excluding retention)
        Note: Regardless of payment application status, this field pulls from "Column E: Work Completed This Period" plus "Column F: Materials Presently Stored" on the payment application detail.
      • Line-by-line claimed and approved amounts in the detail table
      • The overall comment for the payment application
      • A 'Reasons for Difference' table which includes comments on individual line items where there was a difference between the claimed and approved amounts. For information about adding comments, see Review Payment Applications as an Admin.
    3. Allow Subcontractors to Over-Bill
      Place a mark in this checkbox to allow your project's subcontractor to submit a payment application for an amount that exceeds 100% of the commitment amount.
  7. Click Update.

See Also