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Procore (en-GB)

Create Main Contracts

Objective

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

Background

After creating one (1) or more main contracts for your construction project, you can then update its Bill of Quantities (BOQ). For details, see Update the Bill of Quantities (BOQ) on a Main Contract.

 Tip

When to Create a Single Main Contract

Most Procore customers choose to create a single main contract for a single construction project. This is the simplest way for main contractors to manage the change process, particularly when a construction project has a single project owner or funding source. 

When to Create Multiple Main Contracts

If a project has multiple funding sources and/or project delivery methods, it may lead a main contractor to create multiple main contracts:

  • Multiple Funding Sources. A project can have many owners. In some scenarios, the main contractor may also be partially funding the job.
  • 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 Agent (CMa) Delivery Methods. A main contractor operating as a CMa might need to manage multiple main contracts between an owner and various contractors.

Things to Consider

  • Required User Permissions:
  • Prerequisites:
  • Limitations:
  • Due to the sensitive nature of a main contract, the Main Contracts tool does NOT send automated email notifications to individuals or members of a distribution list.
  • To email a main contract to another person, you must follow the steps in Email Main Contract.
  • Limitations exist when creating multiple main contracts on a project. See Are there any system limitations when creating multiple main contracts?
  • Additional Information:
    • Most main 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 main contract are identical (or if the main contract is a division-level summary of the budget), you can use your budget to create your main contract. 
    • You can add multiple line items with the same cost code and cost type assignments. To distinguish between line items, enter descriptive summary in the Description field.
    • If you do not want to enter a cost code for a line item, you can enter 'None.'
    • To learn how to set the accounting method, see How do I set the accounting method for a commitment or main contract?

Steps

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

After you have created one or more main contracts, continue with Update the Bill of Quantities on a Main Contract.

Create a Single Main Contract

  1. Navigate to the project's Main Contracts tool.
  2. Click Create Main Contract.

    create-new-main-contract.png
     
  3. Under General Information, do the following:
    Notes: There are no required fields when creating a new main contract. If you click Create without completing any data entry, the system saves the contract with your name listed as the creator and places it in the Draft status by default.
    • Sign with DocuSign©
      If you are using the Procore + DocuSign© integration (see DocuSign©), a tick appears by default. Clear the tick from the box if the main contract does NOT require a DocuSign© signature. 
    • Contract #
      Accept the default contract number, enter a new number for the main contract or create a custom numbering scheme to use.
      Notes
      • If you plan to create multiple main contracts, Procore increments this number for you by default. For example; 1, 2, 3 and so on. 
      • To use a custom numbering scheme, you can enter a set of alphanumeric characters (for example: PC-1 or PC-01 or PC-001) and Procore increments the number on new contracts.
    • Title
      Enter a descriptive name for the main 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 main contract, this will typically be your company's name. 
    • Status
      Select the current status for the main contract. Options include: Draft, Out for Tender, Out for Signature, Approved, Complete, or Terminated.
      Note: 
      To create variations and payment applications, a main 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 BOQ Items' checkbox.
    • Allow These Users to See BOQ Items
      Place a mark in this check box. Then select the names of any users who have been granted 'Standard' or 'Read Only' permissions on the Main tool from the 'Select a Person' drop-down list.
    • Default Retention. Specify a default percentage that will automatically be applied to all line item costs for retention purposes.  For example, enter: 10%
    • Description
      Enter a descriptive summary to provide more detail about the main contract.
    • Attachments
      Attach any relevant files to the main contract. For example, an electronic copy of the signed contract.
  4. Under Contract Dates, do the following:
    Note: A user with 'Admin' permission on the Main tool can configure the tool to show or hide the fields marked with an asterisk (*) below. See  Configure Settings: Main Contracts.
    • Date Created
      Shows the date the contract was created. This cannot be modified.
    • Start Date
      Specify the project's official start date.
    • Estimated Completion Date
      Specify the estimated date for project completion.
    • Substantial Completion Date*
      Select the date from the calendar control. The substantial completion date refers to the date that work is considered sufficiently complete to satisfy contractual requirements. It also indicates the date that the project owner or client can assume occupancy of all or part of a project and the main contractor is entitled to receive contract balance payment (less retention) until final completion.
      Note: If enabled, the substantial completion date will be updated to each Main Contract Variation's Revised Substantial Completion Date once each Main Contract Variation has a status of Approved.
    • Actual Completion Date
      Select the date from the calendar control. The actual completion date refers to final payments have been processed and the contract is considered closed.
    • Contract Date*
      Select the date from the calendar control. The contract date is 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. The signed contract received date is the date that the executed contract was received.
    • Execution Date*
      Select the date from the calendar control. The execution date is the date the agreement was signed by all parties. 
    • Issued On Date*
      Select the date from the calendar control. The issued on date is 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 date from the calendar control. A letter of intent date is the date the Letter of Intent (LOI) document outlining the agreement between parties is received before the contract is finalized. 
    • Approval Letter Date*
      Select the date from the calendar control. A letter of approval date is the date that compliance with the fees, statements and disclosures stated in the Letter of Approval (LOA) for the contract was signed into record. 
    • Contract Termination Date
      Select the date from the calendar control. A contract termination date is the date outlined in the main 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.
 Tip
If you are ready to start adding a BOQ line items to your main contract, continue with Create Main Contracts.

Create Multiple Main Contracts

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

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

 Note

A main contractor may want to create multiple main contracts for one of the following situations:

  • There are multiple entities funding the job. The project may have many owners or the main 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 Main 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 the various contractors on a project.

See Also