In construction business, it's common to subcontract subprojects or activities to another company, which does the work you. If you subcontract a subproject or activity, you purchase a service from a vendor. This service usually includes a combination of labor, equipment, and materials.
To be able to subcontract work to another company, in Project Control Suite, specific setup is required:
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 retentions |
Project manager |
You can use subcontractor payment retentions to withhold an agreed upon amount from the payments for the delivered work by a subcontractor. At a later moment, if no defects are identified, the retained amount can be released and paid. To define the payment retention terms for subcontractors, the vendor payment retention terms are used. You can define these payment retention terms for vendors that are marked as subcontractor. For more information on vendor payment retention terms, refer to Manage vendor payment retention for projects. |
Set up pricing for subcontracts |
Project manager |
For work that is often or usually subcontracted, you can set up the relevant subcontract pricing that is used as default pricing in the estimation of a project quotation. |
Set up subcontract procurement categories |
Project manager |
To be able to create subcontracts, a procurement category is required. The procurement category is used to create purchase order lines for subcontract lines. The procurement category is used to define the type of work a WBS line relates to. This makes it easier to find the right subcontractor for a WBS line. You can set up several procurement categories that can be used in subcontracts. To use a procurement category in subcontracts, this setup is required:
For more information, refer to Set up and maintain procurement category hierarchies. |
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 retentions |
Project manager |
You can use subcontractor payment retentions to withhold an agreed upon amount from the payments for the delivered work by a subcontractor. At a later moment, if no defects are identified, the retained amount can be released and paid. To define the payment retention terms for subcontractors, the vendor payment retention terms are used. You can define these payment retention terms for vendors that are marked as subcontractor. For more information on vendor payment retention terms, refer to Manage vendor payment retention for projects. |
Set up pricing for subcontracts |
Project manager |
For work that is often or usually subcontracted, you can set up the relevant subcontract pricing that is used as default pricing in the estimation of a project quotation. |
Set up subcontract procurement categories |
Project manager |
To be able to create subcontracts, a procurement category is required. The procurement category is used to create purchase order lines for subcontract lines. The procurement category is used to define the type of work a WBS line relates to. This makes it easier to find the right subcontractor for a WBS line. You can set up several procurement categories that can be used in subcontracts. To use a procurement category in subcontracts, this setup is required:
For more information, refer to Set up and maintain procurement category hierarchies. |
Related to | Notes |
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Set up subcontracting to subcontractors |
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