Subcontract overview

After a prime contract has been set up, 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 the 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 a schedule of values. Like prime contracts, there are four types of subcontracts available: fixed lump sum, cost plus with or without a guaranteed maximum price, and unit price.

About subcontracts

• When subcontracts are created or modified, Sage Construction Management checks if the vendor's profile contains any expired insurance records and displays a warning message.
• The type of the subcontract impacts the subcontract invoice process.
• The default subcontract invoice retention percentage (holdbacks) is set in the subcontract.
• To prevent subcontracts from being modified if a sub invoices exist, the Do not allow Subcontract or SCO Items to be modified after Sub Invoices have been created option is selected in Settings > Features Settings > Procurement.
• You can use the Email DOC (Word 2003) or Email PDF (Adobe Acrobat) export option in Report > Subcontract Details to send the subcontract through email. The subcontract will then be added as an attachment to the email, which the vendor can then print and return signed.
• Subcontract status options occur in the following sequence: Draft → Pending Submission → Pending → Not Approved → Approved.
• A subcontract appears as a committed cost transaction in project analytics if it’s marked as approved with a status date.

Before you begin

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. You must reference a job cost code when entering subcontract original items (schedule of values or unit price items).
4. Optionally, you can reference tax codes on original line items.

Add subcontracts

• Add a subcontract manually.
• Add a subcontract from a work order.
• Add a subcontract from a CPR.
• Add a subcontract from a change order.
• Add a subcontract from an estimate RFP.
• Add a subcontract from a standalone RFP (procurement RFP).
• Add a subcontract from the project directory.
• Copy an existing subcontract.

Edit subcontracts

Before you edit a subcontract

• If subcontract items (schedule of values, GMP amounts, or unit price items) exist, then the subcontract type cannot be changed.
• If a subcontract invoice exists, then subcontract type, status, and status date cannot be changed.
• If a subcontract invoice exists and the Do not allow Subcontract or SCO Items to be modified after Sub Invoices have been created option in Settings > Feature Settings > Procurement is selected, then subcontract original items cannot be added or modified.
• If a workflow rule applies to the subcontract and the rule has been initiated or already approved, then nothing can be modified before the rule is abandoned.

Edit a subcontract

• Edit the subcontract header information and documents.
• Add, edit, or import subcontract line items.
• Edit the subcontract tax total.
• Edit the subcontract items when sub invoices exist.
• Lock or unlock a subcontract.