Subcontractor Management

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 Subcontractors 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

• Track Subcontractorwork to be performed, schedules for that work and financial terms for payment.
• Subcontractor Cards maintain information on each subcontractor and include default settings.
• Track and manage Subcontractor insurance details and expiration dates with the use of Project Codes to designate different types of insurance contracts.
• Set up projects with multiple subcontracts.
• Vendors can be assigned to subcontracts once awarded.
• Ability to track, and report on, if a vendor is minority owned, female owned, disabled owned, or a preferred vendor.
• Ability to record the Subcontractor Vendor's specialty, along with their EEO class.

Manage Invoicing and Terms

• Retention Invoicing - aa percent of the total Purchase Invoice is deferred to a later date for billing.

• Pay When Paid terms are available at the Subcontract level to restrict payment to a Subcontractor until the customer has fully paid the invoice.

• Payment Hold (and reason for hold) are available to block disbursements to the Subcontractor.

Subcontract Services performed

Detailed Subcontract Line items allow itemization of services to be performed or materials that will be provided.

Each Subcontract Line item has a description, optional quantity and rate, and an amount (maximum that will be paid). Items, Expense costs or Resource Groups can be assigned 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

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, the Subcontract is set 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 it is either canceled approved. Three levels of approvals can be set up for Change Orders.

Subcontract Commitment on the Project Plan

Open Subcontract amounts and quantities can show as open commitments.

• Subcontract Lines and amounts will update the Project Plan Commitments, based on the remaining unbilled amounts. Subcontract Commitments show up on the Project Plan under Subcontract Commitment (LCY).

• Posted AP Invoices will reduce commitments on the Project.

For more information, see:

To	See
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