# Add a Subcontract

You use this page to create subcontracts and record committed costs for work performed by vendors or subcontractors on a job. Subcontracts represent agreed or planned costs before bills or expenses are recorded, helping you manage commitments and keep job budgets aligned with expected costs.

To add a subcontract:

1. Go to **Accounts Payable**.
2. Select **Commitments**.
3. Select **+ New Commitment >** **Subcontract**.
4. In **Essentials**, complete the required fields:
   * **Vendor**: Select the vendor or subcontractor performing the work.
   * **Job**: Select the job this subcontract is associated with so committed costs flow into the correct job budget.
   * **Terms**: Select the payment terms for the subcontract.
   * **Subcontract Date**: Select the date the subcontract is created or becomes effective.
   * **Retainage**: Enter the retainage percentage to be withheld, if applicable.
   * **Status**: Select the current status of the subcontract (for example, Draft).
   * **No.**: Enter the subcontract reference number used for tracking.
   * **Scope**: Enter a description outlining the scope of work covered by the subcontract.
5. In **Items**, add the subcontract cost details:
   * **Description**: Describe the subcontracted work or service.
   * **Cost Code**: Select the cost code used to categorize the subcontract cost.
   * **Cost Type**: Select the cost type associated with the subcontract.
   * **Amount**: Enter the committed amount for the subcontract item.
   * **Tax**: Select whether tax applies. This field is optional and not required to create the subcontract.
   * **Actions**: Remove an item if added by mistake.
6. Review the **Subtotal** and **Total** to confirm the committed amount.
7. In **Additional Details** (optional):
   * **Includes (+)**: Add any items or work explicitly included in the subcontract.
   * **Excludes (-)**: Add any items or work explicitly excluded from the subcontract.
   * **Notes**: Add internal notes or additional information related to the subcontract.
   * **Attachments**: Upload supporting documents such as agreements or scope details. Supported formats include PNG, JPG, JPEG, and PDF.
8. Select **Save** to complete the process.<br>

   <figure><img src="/files/sT5KOZZQcDKCPlORVg5l" alt=""><figcaption></figcaption></figure>

Once saved, the subcontract is created under **Commitments** and the committed cost is reflected in the associated job for budgeting and cost tracking.

### See Also

Keep exploring our platform by taking the next step:

* [Add Expenses to a Job](/documentation/job-center/add-expenses-to-a-job.md): Learn how subcontract-related costs flow into job budgets.
* [Understand Job Budget Metrics](/documentation/job-center/understand-job-budget-metrics.md): Learn how committed costs affect job budgets and forecasting.


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