Subcontract

Track application can manage sub-contractors, enable tracking of sub-contractor labor, provide proof of sub-contractor hours worked, and upload related bid documents. The cost of sub-contract labor should be limited by an agreed markup rate.

The subcontract feature has many benefits.

Provide visibility and management of sub-contracted work.
Provide the agreement between the vendors assigned the work and the sub-contracted vendor.
Provide audit and reporting capabilities to identify the work and the person authorizing the work.

Pre-define parameters for a subcontract

Ensure the following information is available in the Track application before proceeding to process the pre-approval request with the subcontract.

From the Plant Codes screen, add SUB for a plant code with the selected location ID. Location IDs are found on the Location screen. For example, if the selected location ID is 1, then the plant code for this location would be SUB1. Refer to Plant Codes for more information about the setup.
From the External Systems screen, add an order type for subcontract as SUB-CONTRACT. Refer to External Systems for more information about the setup.
From the Override Reason screen, create one or more override reasons (or pre-approval reasons) for the subcontract. Refer to Override Reasons for more information about the setup.
From the Pre-Approval Reason for Organization screen, it is required to enter SUB into the Extra text box for all pre-approval reasons assigned for the subcontract. The SUB will prompt Track to create the Level 2 cost object with this approval number. Refer to Pre-Approval Reason for Organization for more information about the setup.

Submit a pre-approval request with subcontract

If the subcontract for the material is used, user must enter the pre-approval numbers into the Pre-Approval Numbers text box on the Material Used screen. When allocating the labor hours, enter the pre-approval number at the Level 2 text box on the Allocate Labor screen.

Hover a mouse pointer over the Activity menu link on the menu bar to display its menu.
Slide a mouse pointer over the Pre-Approvals option to display its menu.
Click Pre-Approval Request to open the Pre-Approval Request screen.
If applicable, select a location from the Location drop-down list.
Select an organization from the Organization drop-down list.
Select a module option from the Module drop-down list.
Select a pre-approval reason for the subcontract from the Reason drop-down list. Refer to Pre-Approval Reason for Organization for more information about the setup.
Select an approver from the Approver drop-down list.
Enter the effective date or date range into the Effective From and Effective To text boxes, or select the dates from the calendars.
Enter a comment in the Comment text box.
Select the SUB-CONTRACT option from the Order Type drop-down list.
If the cost object is mandatory for approval, then select a cost object from the Cost Object drop-down list. Otherwise, proceed to the next step.
Enter a cost impact into the Cost Impact text box.
Click the Submit Request button to save and display the pre-approval request in the Pre-Approval Requests Listing.
Attach a bid document by following the Submit a new bid document instructions.
Approve or reject the pre-approval request for the subcontract by following the Process Pre-Approval Request instructions.
After the pre-approval request is approved, refer to the Assign Pre-Approval Number to assign the pre-approval number to the subcontractor.