Basics of Sub-Contracts

Sub-contracts in Contractor Foreman are essential for tracking committed costs and managing agreements with subcontractors. A sub-contract represents an agreement between a contractor and a subcontractor for a specific portion of the work within a project. By using sub-contracts, you can effectively monitor financial commitments, streamline billing processes, and ensure that project costs are properly recorded.

Purpose of Sub-Contracts in Contractor Foreman

Sub-contracts help project managers track financial obligations accurately. For example, if you have hired a subcontractor to complete all plumbing works for $10,000.00, you can create a sub-contract in Contractor Foreman to reflect this commitment.

• This $10,000.00 will now be recorded as a committed cost for your project.
• As the work progresses, the subcontractor will submit invoices for completed work, which from now on we will call Bills.
• You can generate a bill against the sub-contract, selecting the completed items and their corresponding amounts.
• For instance, if the subcontractor invoices $2,000.00 for completed plumbing work, you can generate a bill for $2,000.00 from the sub-contract, and this amount will be added as an actual cost to your project.

By managing sub-contracts in this way, you gain better financial control over your projects, ensuring that all contractual commitments are properly documented and monitored.

How to Create a Sub-Contract in Contractor Foreman

Follow these steps to create a sub-contract in Contractor Foreman:

Access the Sub-Contracts Module

Log into Contractor Foreman and navigate to the Sub-Contracts module from the main menu.

Click the +Sub-Contract button located at the top right corner of the screen.

Enter Basic Sub-Contract Details

You will now be prompted to enter key details for the new sub-contract:

• Project* – Select the project to which the sub-contract belongs.
• Subject* – Provide a name for the sub-contract (e.g., “Plumbing Works Agreement”).
• Agreement Number* – Assign a unique identifier to the sub-contract.
• Sub-Contractor – Choose the subcontractor from your directory.
• Select whether this Sub-contract is Billable or not

After entering these details, click “Create Sub-Contract” to generate the contract. You will be redirected to the newly created sub-contract page.

Add Detailed Information to the Sub-Contract

Once the sub-contract is created, you can further add more details.

• Adding Sub-Contract Items
  1. You can manually add items related to the sub-contract or import them from various sources, such as:
  2. Cost Items Database – Pull predefined cost items into the sub-contract.
  3. Estimate – Import cost items from the approved estimate of the project.
  4. Schedule of Values (SOV) – Include relevant SOV items.
  5. Change Orders – Import approved change order items into the sub-contract.

• Setting Retention Percentage
  1. Define the retention percentage that will be held back from each payment until project completion.

Managing Associated Documents

On the left panel of the sub-contract, there are multiple tabs for managing different aspects:

• Documents Tab – View any insurance certificates associated with the subcontractor (if they have been added in the directory). You can also see bills that have been created against this sub-contract.
• Terms Tab – Define contract terms and conditions specific to this sub-contract.
• Files Tab – Upload and store relevant files, including drawings, specifications, and contract documents.
• Notes Tab – Add important notes or remarks about the sub-contract.
• Finalizing and Approving the Sub-Contract

Once all details are added and reviewed, follow these steps to finalize the sub-contract:

Click the three-dot menu on the top right of the sub-contract page.

Select View/Email PDF to generate a PDF version of the sub-contract.

Choose a pre-defined template and review the document.

Submit the sub-contract for approval by the subcontractor.

Generating a Bill from a Sub-Contract

As the subcontractor completes portions of their work and submits bills, you can generate bills against the sub-contract as long as the subcontract is approved:

1. Open the sub-contract from the Sub-Contracts module.
2. Click the three-dot menu at the top right and select Generate Bill.
3. Select the completed items and enter the percentage or amount to be billed.
4. Save the bill, which will now be recorded as an actual project cost.

Sub-contracts in Contractor Foreman are an effective way to manage financial commitments and ensure accurate tracking of project costs. By properly setting up sub-contracts, importing relevant items, defining retention percentages, and managing associated documents, you can maintain better financial control and streamline billing processes.