Set up subcontract management

If you use subcontracting, set the subcontracting parameters on the Advanced project management parameters.

In construction business, it's common to subcontract subprojects or activities to another company, which does the work you. If you subcontract a subproject or activity, you purchase a service from a vendor. This service usually includes a combination of labor, equipment, and materials.

To be able to subcontract work to another company, in Advanced project management, specific setup is required:

• Define which vendors are subcontractors.
• If applicable, set up subcontractor retentions.
• Set up the pricing that applies to subcontracting.
• Set up procurement categories that are used for subcontracting.

In construction business, it's common to hire external persons to do (a part of) the work for you. If you hire an external worker, you purchase a service from a vendor. This service usually includes only labor.

To be able to hire subcontractor workers, in Advanced project management, specific setup is required:

• Set up the subcontractor and related workers.
• Set up the subcontractor worker cost price (hour).