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url: 'https://fullclarity.help/subcontracts.md'
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# Subcontracts

Subcontracts is the FullClarity capability that lets head contractors manage subcontractor work end-to-end — from the day a subcontract is awarded through every variation, every progress claim, and every payment.

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::: tip Early access
The Subcontracts feature is currently in early access with selected customers. Activation is opt-in per subsidiary — talk to your customer success contact at FullClarity to enable it on your NetSuite account.
:::

## What this covers

Subcontracts spans three FullClarity apps because there are two audiences working on opposite sides of the same contract:

* **Head contractor** uses **Project Financials** inside NetSuite to set up subcontracts, raise and approve variations, assess incoming progress claims, issue payment schedules on NZ CCA subcontracts, and convert approved claims into vendor bills.
* **Subcontractor** uses **Connect Mobile** to submit progress claims, and **Connect** (web) to look over the purchase orders and projects the head contractor has shared with them.

The three apps share a single source of truth — your NetSuite account. Whatever the subcontractor submits in Connect arrives in NetSuite; whatever the head contractor approves in NetSuite flows back to Connect.

## The life of a subcontract

1. **Head contractor creates** the Subcontract in NetSuite, including the Schedule of Values (the line items the sub will claim against).
2. **Subcontractor signs in** to Connect Mobile and sees the work orders issued to them.
3. **Subcontractor submits** a progress claim from the mobile app.
4. **Head contractor assesses** the claim line-by-line, optionally adjusting amounts and recording reasons.
5. **Head contractor finalises** the assessment, which records an immutable snapshot of what was assessed and why. On **NZ CCA** subcontracts, the head contractor can then generate and send the statutory **Payment Schedule** from the claim itself — see [Issue a payment schedule](/subcontracts/head-contractor/issue-a-payment-schedule). On **AU SOP Act** and **UK HGCRA** subcontracts, the equivalent document (Payment Schedule / Pay Less Notice) is **not generated by the system** — issuing it remains the head contractor's responsibility.
6. **Approved claim converts to a Vendor Bill** in NetSuite, which AP pays through the normal payment cycle.
7. **Variations** raised during the contract follow a parallel approval workflow with delta-context visibility — approvers see the original value, prior-approved variations, and the specific change up for approval.

## Three audiences, three sub-sections

* [For head contractors](/subcontracts/head-contractor) — create subcontracts, raise and approve variations, raise back-charges, assess claims, issue payment schedules (Project Financials in NetSuite)
* [For subcontractors — mobile](/subcontracts/subcontractor-mobile) — sign in, view work orders, submit progress claims (Connect Mobile)
* [For subcontractors — web](/subcontracts/subcontractor-web) — view the purchase orders issued to you (Connect web)
* [Reference: Subcontract states](/subcontracts/reference/subcontract-states) — the lifecycle states a subcontract moves through
* [Reference: Prequalification](/subcontracts/reference/prequalification) — the compliance-document check made when a subcontract is signed

::: warning New Zealand: NetSuite ANZ Localization is required
To run NZ CCA subcontracts, your NetSuite account needs Oracle's **ANZ Localization** SuiteApp installed. The Payment Schedule relies on its **RCTI** (recipient-created tax invoice) box on the vendor record to decide whether to issue a buyer-created tax invoice. Without ANZ Localization, there is no RCTI box, so every subcontractor is treated as having no buyer-created tax invoice agreement: the schedule is issued as an ordinary Payment Schedule, with no GST lines and no tax invoice number. Ask your NetSuite administrator to confirm it's installed before you start.
:::

## A note on permissions

Subcontracts permissions live in two places. As a **head contractor**, what you can do is governed by your Project Financials permissions in NetSuite — see [Project Financials > Permissions](/project-financials/reference/permissions). As a **subcontractor**, what you can see in Connect is governed by the relationship between your organisation and the head contractor's organisation; your administrator manages this through Connect's portal access controls.

There is no separate "Subcontracts permissions" page because these two models work end-to-end through the cooperation of the apps — they aren't a single thing.

## Glossary (terms used throughout this section)

| Term | Meaning |
|---|---|
| Schedule of Values (SoV) | The line-item breakdown of what's in a subcontract — what the sub will claim against |
| Revised Contract Value (RCV) | Original contract value + sum of all approved variations |
| Variation | A change order against an existing subcontract — adds or removes scope |
| Progress claim | A claim covering one billing cycle (typically a month) — the sub's invoice |
| Payment Schedule | The head contractor's statutory response to a progress claim (AU / NZ). On **NZ CCA** subcontracts the head contractor generates and sends it from the claim — see [Issue a payment schedule](/subcontracts/head-contractor/issue-a-payment-schedule). On **AU SOP Act** subcontracts it is still not generated by the system |
| Pay Less Notice | The UK equivalent of a Payment Schedule |
| Practical Completion (PC) | The subcontract milestone marking the end of active work |