I plan on setting up a server using Perforce, now my quesiton is, would Unreal Engine 4 need to be on the computer I am using as a server and would the project have to be made on that computer in order for my friends and I to work on it?
No. Perforce is like a “file server” where you put files to, and other people can read files from. You don’t need the actual engine on that server, as all it does is let you copy versions of files back and forth.
So say I have the engine on my friends and my own computer, would I install perforce on the server computer?
I am assuming by “server computer” you mean “the computer that will be the perforce file server.”
Yes, you would install the perforce server software on the server computer that everybody will sync to.
You would also install the perforce client software on each computer that will send/receive versioned files during development.
I think that answers everything I need thank you very much!