Subcontractor contract agreements allows allow you to create and manage contracts for subcontractors - for multiple jobs - and to track change orders and payments to those subcontractors. When you create a contract, you distribute the contract amount across the relevant cost codes. These cost codes must be assigned to the job.
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- A contract can have one of four statuses: Pending, Confirmed, Closed, and Canceled. Confirmed is the active status, and the only one in which you can create change orders and post payments. Pending allows you to start entering information prior to a contract being finalized and approved.
- Retention can be applied per cost code.
- A subcontractor can have multiple contracts on one job.
- Unposted costs are reflected in committed costs in Job Cost
- A contract can be closed, even if there is retention left to be paid.
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- Select Cards > Job Cost > Contract Agreement. The Contract Agreement window opens.
- Select a Contract Vendor, and enter a Contract Number and Contract Name.
- Complete the following fields; some are filled automatically by the system and cannot be edited.
- Contract Status
Defaults to Pending. As soon as the Contract Agreement window is filled in and saved, you can change the status to Confirmed - the status used when the contract is active; payments and change orders can be created only if the contract is Confirmed. Canceled means the contract will no longer be active, meaning no further activity is allowed and the contract cannot be reversed. Closed means the contract has been complete completely fulfilled (all payments made). - Original Contract Amount
Enter the total original contract amount. Once the contract status is Confirmed, the contract amount can be changed only with change orders. - Change Orders
Fills automatically with the sum of all change orders applied to this contract. - Contract To Date
Fills automatically with the amount of the original contract amount plus change orders minus any payments made. - Tax Schedule
Enter the tax schedule to be used with this contract. - Retention %
Enter the retention percent that will be withheld from payment until services are favorably satisfied. When you assign cost codes to this contract, you can enter unique retention percentages for each cost code, if necessary. - Estimated % Complete
If you want to track estimated completion percentage, enter it here. This field is not updated by the system. - Scheduled Start/Completion Dates
Enter the start and completion dates of the contract agreement. - User-Defined fields
User-defined fields are used to store additional information. If your organization has defined these, consult with your Manager or Supervisor to determine if these are required.
- Contract Status
- Save the window. When a Confirmed contract agreement is saved, the costs become committed costs in Job Cost.
- To distribute the contract amount to cost codes, select the Add Cost Codes button. The Available Contract Cost Codes window opens.
- Select a Job Number. The available cost codes appear.
- Select the cost codes to distribute. You can multi-select several by using CTRL-click and SHFT-Select. After selection, select the Select button. The window closes and the cost codes appear in the Contract Agreement window.
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Edit the approved payment amount in the Release Amount field. If the amount is changed, the Release Amount in the Contract Agreement Payables Entry will update accordingly.
Note The release amount cannot exceed the claimed amount.
Enter a comment in Reason Note. Select Save to close the Contract Claimed Amounts window. In the Contract Agreement Payables Entry window, you can either save the transaction to a batch or you can post the transaction.
Note When the Claimed Amount is greater than the Release Amount, the sub-contractor must resubmit a claim for the remaining amount. For example, a sub-contractor claims $10,000, and only $7,000 is approved. The $7,000 is released for the payment. The remaining unapproved $3,000 is recorded on the transaction and the sub-contractor must resubmit a claim for that amount.
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The Payment Schedule report has been created that displays the cost code description, the total amount of the payment claim, and the scheduled amount. This report reflects all cost codes for each job as well as the comments entered in the Reason Note field of the Contract Claimed Amounts window. The report creates a separate page for each job.