Subcontract Overview

Once a Prime Contract has been setup, Purchase Orders (PO) and Subcontracts are available to procure goods and services. Both of these types of financial transactions are shown as committed costs in Corecon's Project Analytics Dashboards. The difference between Subcontracts and Purchase Orders is that for Subcontracts you can document revisions to the scope of work through Subcontract Change Orders (SCO) and Subcontract Invoices can have retention (holdbacks).

Creating Subcontracts is similar to setting up Prime Contracts. For each Subcontract, one can define the scope of work, list the inclusions, exclusions, contract documents, and break down the contract amount using schedule of values. Like Prime Contracts, there are four types of contracts available: fixed lump sum, cost plus with or without a guaranteed maximum price, and unit price.

Important Things To Know

1. When Subcontracts are created or modified, Corecon will check if the vendor's profile contains any expired insurance records and will then provide a warning message shown in red.
2. There are four types of Subcontracts which will impact the Subcontract Invoice process: Fixed Lump Sum, Cost Plus with or without a Guaranteed Maximum Price (GMP) and Unit Price.
3. The default Subcontract Invoice Retention % (Holdbacks) is set in the Subcontract.
4. To prevent Subcontracts from being modified if Sub Invoices exist, please see Settings | Features Settings | Procurement | "Do not allow Subcontracts or SCOs to be modified after Sub Invoices have been created."
5. A Subcontract can be emailed by clicking the Report option at the top right and choosing 'Email Doc' or 'Email PDF' option in the popup form. The Subontract will then be an attachment in the email which can be printed by the vendor and later returned signed.
6. Subcontract Status options occur in the following sequence: (1) Draft (2) Pending Submission (3) Pending (4) Not Approved (5) Approved
7. A Subcontract will appear as a Committed Cost transaction in Project Analytics if it is marked Approved with a Status Date.

Steps To Complete Before Entering Subcontracts

1. Make sure the Vendor that will be issued the Subcontract is listed in the Project Directory.
2. Make sure the Prime Contract that will be referenced on the Subcontract is Approved and has a Status Date.
3. Referencing a Job Cost Code is required when entering Subcontract Original Items (aka Schedule of Values or Unit Price Items).
4. Optional: Tax Codes can be referenced on Original Line Items.

Subcontract Add Options

• Add Manually
• Add From WO
• Add From CPR
• Add From CO
• Add From Estimate RFP
• Add From Standalone RFP (aka Procurement RFP)
• Add From Project Directory
• Copy Subcontract

Subcontract Edit Options

Important Things to Know About Editing Subcontracts:

• If Subcontract items (aka Schedule of Values, GMP Amounts, Unit Price Items) exist, then Contract Type can not be changed.
• If a Subcontract Invoice exists, then Contract Type, Status, and Status Date cannot be changed.
• If a Subcontract Invoice exists and Settings | Feature Settings | Procurement | 'Do not allow Subcontracts or SCOs to be modified after Sub Invoices have been created' is checked, then Subcontract Original Items cannot be added or modified.
• If a Workflow Rule applies to the Subcontract and the Rule has been initiated or approved already then nothing can be modified unless the Rule is abandoned.

Edit Options

• Edit Subcontract "Header" Information and Documents
• Add, Edit, or Import Subcontract Line Items
• Edit Subcontract Tax Total
• Locking or Unlocking Subcontracts

See Also

• Subcontract Schedule of Values Overview (Definition)
• Tax Code Reference Logic On PO, Bill, Subcontract, and SCO Items
• Printing or Emailing a Subcontract
• Viewing Overall Subcontract Status
• Subcontract Invoice Billing Methods