Clients who work with subcontractors need a way to track their agreements and change orders. For cash flow purposes they must have the ability to pay vendors only when the work performed by the subcontractors. Clients who work with subcontractors need to ability to hold back parts of subcontractor invoices ("retention billing") until the end of the project as a safeguard for any defective or non-conforming work by the subcontractor. The Progressus Subcontractor module includes these features:
Track and manage subcontracts and vendors:
- allows you to track work to be performed, schedules for that work and financial terms for payment.
- you can track and manage subcontractor insurance details and expiration dates with the use of Project Codes to designate different types of insurance contracts.
- You can set up projects with multiple subcontracts.
- Vendors can be assigned to subcontracts once awarded.
- You cannot approve a subcontract (creating a project commitment, or actual postings) until a subcontract/vendor has been assigned to it.
- Ability to track, and report on, if a vendor is minority owned, female owned, disabled owned, or a preferred vendor.
- Ability to record the vendor's specialty, along with their EEO class.
Manage invoicing and terms:
Retention Invoicing - allow Subcontractor retention to be set at a percentage % on projects/tasks and subcontractors to hold back a portion of their contract agreement with a contractor.
Pay When Paid terms are available at the subcontract level to restrict payment to a subcontractor, only when the customer has fully paid the invoice.
Payment Hold (and reason for hold) are available to block disbursements.
Subcontract Services performed
Subcontract line items allow you to itemize the services to be performed or materials that will be provided.
Each line item has a description, optional quantity and rate, and an amount (maximum that you will pay). You can assign items, expense costs or Resource Groups to each line item. Each line can also have a payment retention percentage. These amounts control requests for payment. The total payments on an individual line are limited to the amount entered for the line item.
Change Orders track changes to the subcontract that are agreed upon by the client and the subcontractor. While a subcontract is in the pending status, changes can be made without a change order. However, once you set the subcontract to Active status, changes to the subcontract must be done with Change Orders, regardless of whether it is a change to amounts, quantities or scheduled completion dates.
A change order status on a subcontract is set to Pending until you either cancel it or approve it. Three levels of approvals can be setup for change orders.
Budgets and Commitments
- Subcontract lines and amounts can be posted to budgets.
- Open subcontract amounts and quantities can show as open commitments.
- The unvouchered portion of the subcontract will be a commitment on the project's budget
- Subcontract Commitments show up on the Project Plan under Subcontract Commitment (LCY).
- Posted AP Invoices will reduce commitments on the Project.
Use the links in the following table to access help articles on the listed topics:
|Create Project Codes||Create Project Codes|
|Designate Vendor as a subcontractor||Designate a vendor as a subcontractor|
|Create subcontractor card||Create and configure Subcontract Card|
|Create Subcontract Purchase Invoices||Create Subcontract Purchase Invoices|
|Create Change Orders||Create Change Orders|
|Approve Change Notices||Change Notice Approval|
|Make payments to subcontractors||Subcontract Payment Requests|
|Approve Subcontract Payment Requests||Subcontract Payment Request Approval|
|Add Retention to a subcontract||Create subcontract retention|