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.

   

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

To learn more about managing commitments and job costs, you can check:

• Manage Cost Codes/Names: Learn how to set up and organize cost codes used in subcontracts.

• Use Cost Types: Learn how cost types impact job cost tracking.

• Add a Bill: Learn how to record bills related to subcontracted work.

• Add Expenses to a Job: Learn how subcontract-related costs flow into job budgets.

• Understand Job Budget Metrics: Learn how committed costs affect job budgets and forecasting.