Commitments
Once the funding is approved (or if you chose to remove the Funding tool from your project because you don't have an upstream budget approval requirement) you can set up your contracts. In Procore, there are two types of contracts: purchase orders and subcontracts.
TipDoes your organization refer to your purchase orders and subcontracts as 'contracts'? For English-speaking audiences, Procore can be configured to use an English dictionary that changes the Point-of-View (POV) for Procore from a 'General Contractor' to an 'Owner'. When you are implementing Procore, we recommend talking to your Procore point of contact to see if setting up this dictionary would be right for your team. Procore's owner dictionary is only be enabled when requested by your company's Procore Administrator. To learn more, see What tool names and terms are different in Procore for general contractors, owners, and specialty contractors?
Does your organization refer to your purchase orders and subcontracts as 'contracts'? For English-speaking audiences, Procore can be configured to use an English dictionary that changes the Point-of-View (POV) for Procore from a 'General Contractor' to an 'Owner'. When you are implementing Procore, we recommend talking to your Procore point of contact to see if setting up this dictionary would be right for your team. Procore's owner dictionary is only be enabled when requested by your company's Procore Administrator. To learn more, see What tool names and terms are different in Procore for general contractors, owners, and specialty contractors?
Purchase Orders
In Procore, a Purchase Order (PO) is a documented financial commitment that details the types, quantities, and agreed-upon prices for products or services. As part of the procurement process, purchase orders are created by a 'buyer' (for example, a project owner) and issued to a 'seller' (for example, a general contractor, subcontractor, or specialty contractor) to cover the cost of a contract. Once accepted by the 'seller,' a purchase order represents an agreement between the two parties.
To learn more, see Create a Purchase Order.
For more information about the Commitments tool, see the Commitments landing page.
SubContracts/Contracts
Contracts represent the contractual agreement between the Owner company and the downstream collaborators (i.e., contractors, vendors, suppliers) performing a scope of work. Contracts are either created from a winning bid or in the Project level Commitments tool. When you link a contract line item to a funding line item, the connection is reflected on funding reports (i.e., the Buyout Report and the Job Cost to Budget Comparison Report).
NoteThe Job Cost to Budget Comparison Report is only available when the Change Events tool is disabled on a Procore project.
The Job Cost to Budget Comparison Report is only available when the Change Events tool is disabled on a Procore project.
When you select the related budget code for the contract that it's associated with, the connection is automatically reflected on all budget reports (i.e., Budget Detail Report, Budget Summary Report, etc.) Commitment line items will appear on the budget just like commitment change orders.