1. Manufacturing
  2. Project Control Suite
  3. Setting up and maintaining Project Control Suite
  4. Set up subcontract management

Set up subcontracting to subcontractor workers

In construction business, it's common to hire external persons to do (a part of) the work for you. If you hire an external worker, you purchase a service from a vendor. This service usually includes only labor.

To be able to hire subcontractor workers, in Project Control Suite, specific setup is required:

  • Set up the subcontractor and related workers.
  • Set up the subcontractor worker cost price (hour).


Project manager Project manager Start Start Set up subcontractors Set up subcontractors To set up subcontractors, you use vendors. You can create a new vendor or mark an existing vendor as subcontractor. For more information on setting up and maintaining vendors, refer to Maintaining vendor information. Procedure 1. Go to Accounts payable > Vendors > All vendors. 2. In the list, find and select the desired record. 3. Click Edit. 4. Expand the Subcontracting section. 5. Select Yes in the Subcontractor field. Notes You can review the list of subcontractors here: Project management and accounting -> Setup -> Advanced project management -> Subcontract -> Subcontractors. All vendors with the subcontract setup are automatically listed here.If you hire external workers as subcontractor workers, for each subcontractor, define the applicable Wage control ledger dimension on the Subcontractors form. This is used if a related subcontractor worker posts hours on an hour journal or timesheet. This ledger dimension replaces the standard payroll allocation. Set up subcontractor workers Set up subcontractor workers If you hire an external person, set up this person as a subcontractor worker. This setup is required for a subcontractor worker: The Worker type is Contractor. On the Worker form, on the Employment page, in the Contractor details section, define a Vendor that is marked as Subcontractor. For more information on hiring a new worker, refer to Key tasks: Workers. Procedure 1. Go to Human resources > Workers > Contractors. 2. Click Edit. 3. In the list, click the link in the selected row. 4. Click the Contract employment tab. 5. Expand the Contractor details section. 6. In the Vendor field, enter or select a value. Notes You can review, for each subcontractor, the list of subcontractor workers here: Project management and accounting -> Setup -> Advanced project management -> Subcontract -> Subcontractor workers. All Contractor workers that are linked to Subcontractor vendors are automatically listed here. Set up subcontractor worker cost price - hour Set up subcontractor worker cost price - hour Hired subcontractor workers are not paid via salaries/payroll. They are paid via a purchase invoice that you receive from the subcontractor. The cost price of these hours can be different from the cost price (hours) of your own employees. Therefore, you can set up default cost prices (hour) for subcontractor workers. You can set up subcontractor worker cost prices (hour), for these combinations: Category and Subcontractor. Category, Subcontractor, and Worker. Procedure 1. Go to Project management and accounting > Setup > Prices > Cost price (expense). 2. Click New. 3. In the Effective date field, enter a date. 4. In the Category field, enter or select a value. 5. In the Resource field, enter or select a value. 6. In the Project ID field, enter or select a value. 7. In the Customer account field, enter or select a value. 8. In the Project contract ID field, enter or select a value. 9. In the Price group field, enter or select a value. 10. In the Line property field, enter or select a value. 11. In the Construction template field, enter or select a value. 12. In the Schedule unit field, enter or select a value. 13. In the Subcontractor field, enter or select a value. 14. In the Cost price field, enter a number. End End

Activities

Name Responsible Description

Set up subcontractors

Project manager

To set up subcontractors, you use vendors. You can create a new vendor or mark an existing vendor as subcontractor.

For more information on setting up and maintaining vendors, refer to Maintaining vendor information.

Set up subcontractor workers

Project manager

If you hire an external person, set up this person as a subcontractor worker.

This setup is required for a subcontractor worker:

  • The Worker type is Contractor.
  • On the Worker form, on the Employment page, in the Contractor details section, define a Vendor that is marked as Subcontractor.

For more information on hiring a new worker, refer to Key tasks: Workers.

Set up subcontractor worker cost price - hour

Project manager

Hired subcontractor workers are not paid via salaries/payroll. They are paid via a purchase invoice that you receive from the subcontractor. The cost price of these hours can be different from the cost price (hours) of your own employees. Therefore, you can set up default cost prices (hour) for subcontractor workers.

You can set up subcontractor worker cost prices (hour), for these combinations:

  • Category and Subcontractor.
  • Category, Subcontractor, and Worker.

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