About subcontractors
A subcontractor is hired by and paid by the supplier of the contract. The contract administrator may need to track the supplier payments to the subcontractors (the supplier will provide proof of subcontractor payment to the contract administrator). The administrator also may need to know the diversity qualifications and certifications of the subcontractors.
In Contract Management, you can
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set up subcontractors
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enter subcontractor information on a contract
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inquire on subcontractors
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view alerts related to subcontractors
Set up subcontractors
Subcontractors are set up separately from suppliers. A supplier/vendor has a direct relationship with the buyer. Subcontractors, on the other hand, are responsible to the primary contractor (supplier/vendor). The only requirement to set up a subcontractor is a company name. Optionally, you can enter address information, and tax exempt numbers. In addition, multiple diversity, contact, certification, and comment information can be entered, similar to the information on suppliers.
Enter subcontractor information on a contract
To attach subcontractors to a contract, the contract must be enabled for subcontractors. You can then attach a subcontractor or subcontractors to the contract.
Once a subcontractor is attached to a contract, you can include additional information, such as
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Attach a diversity code.
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Enter a payment percentage, which requires the Proposed Total Amount field on the contract to contain a defined dollar value. The payment percentage indicates what portion of the proposed total amount for the contract is expected to be paid to the subcontractor. Payment percentages for a contract cannot add up to more than 100 percent.
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Indicate if a lien release is required or completed
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Enter subcontractor payments. Payments information can include the payment number, amount, and date. You can also include an attachment, such as an image of the check.
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Enter additional comments about the contract subcontractor, such as lien documents or additional information about the subcontractor.
On the Contract Subcontractors tab, there are totals for expected payment percentage, total amount paid, and a total percent complete column which takes the total amount paid divided by the proposed total amount for the contract, so you can compare actual payment percent to expected payment percent.
Contract Subcontractors Search
You can search for subcontractors. The inquiry contains searches by contract, subcontractor, and diversity code. The inquiry list also does totaling by contract and for all selected records.
Subcontractor alerts
On the Alerts tab on the Contract Management page, there is an alert called Contract Subcontractors with Payments Owed. It shows any Contract Subcontractor records where the payment percent is less than the total percent complete.