Create a subcontract

Set up a new subcontract for a project, including the Schedule of Values, and move it through Draft → Signed so claims and variations can begin.

When to use this

After a subcontractor has been selected for a piece of work on a project, and before any claim or variation against that subcontract can happen. Creating the subcontract is what gives the sub something to claim against and what gives you a record to assess against.

Prerequisites

• An active project — see Create a project
• The vendor exists as a Vendor record in NetSuite with the Subcontractor flag set — vendors without this flag won't appear in the subcontract vendor lookup
• Subcontracts feature enabled for the subcontract's subsidiary — without it, the subcontract will save but none of its automation will run
• The subcontractor's compliance documents approved in Certified Documents before you sign — see Prequalification

Walkthrough

1. Go to FullClarity → Project Financials → Subcontract → New. A new Subcontract record opens in Draft status.
2. Select the Vendor (the subcontractor), the Project, the Subsidiary and the Currency.
3. Set the Compliance Model — this is the jurisdiction switch (AU SOP Act, NZ CCA, UK HGCRA, US, or None). It drives the statutory response window and the payment schedule format, so set it before the first claim arrives.
4. Set the Contract Date, the Commencement Date (when work starts), and the Expected PC Date.
5. Choose the Contract Type — Lump Sum, Unit Rate, Time & Materials, or Mixed.
6. Save the subcontract. It remains in Draft while you finalise the Schedule of Values and contract terms.
7. Add the Schedule of Values lines. Either click Add Estimate Lines to pick lines from the project's estimate — tick the lines you want and click Add Selected Lines; each one comes across with its amount, cost centre and a link back to the estimate line — or add lines by hand on the Subcontract Lines sublist. Each line takes an item, quantity, rate, description and cost centre.
8. Move the subcontract through its lifecycle with the buttons at the top of the record: Send to Tender (optional — out for bids), Award (vendor selected, contract being drawn up), then Sign (executed and approved). See Subcontract states for the full set.
9. When you click Sign, confirm the prompt. FullClarity checks the subcontractor's prequalification and, if it passes, signs the subcontract and raises the commitment purchase order.

What success looks like

• A Subcontract record in Signed status, visible at FullClarity → Project Financials → Subcontract.
• The Schedule of Values lines are visible on the record, and the subcontract total matches the sum of the SoV line values.
• Within a minute or so of signing, the PO Generation Status field shows Success and the subcontract links to the commitment purchase order — created already Approved, with one line per Schedule of Values line. This is the PO that any approved variation will amend automatically. You don't edit it directly.
• The subcontractor sees that purchase order in Connect at next sync.

Gotchas

• Sign is refused if prequalification fails. The subcontract stays at Awarded and you see the reason. Approve the outstanding document in Certified Documents and click Sign again — see Prequalification. The Prequal Status field on the subcontract shows the current result (Valid / Expiring Soon / Expired / Incomplete / Not Applicable) and refreshes when you open the record, change the vendor, press Sign, or once a day.
• The purchase order is generated in the background. Signing returns immediately and the PO follows a minute or so later.
• If the purchase order can't be created, signing is undone. The subcontract goes back to Awarded, PO Generation Status shows Failed, and a red message at the top of the record gives the reason. Fix the cause, save, and click Sign again. A common cause is a missing Department: if your account makes departments mandatory on transactions, set the subcontract's Department before you sign, because the purchase order takes its department from the subcontract.
• Subcontract POs are carved out of native NetSuite PO approval. Approval happens at the Subcontract layer and the generated PO is created already approved. Don't approve the underlying PO manually. If your organisation approves purchase orders with its own approval fields rather than NetSuite's approval routing, that's fine too: Create Bill on an approved claim treats a PO that has moved on to Pending Receipt (or later) as approved.
• After Signed, change the scope through a Variation. Once the commitment PO exists, the scope changes only through variations, so the subcontract and the PO stay in step — see Raise a subcontract variation.
• The Subcontractor flag is mandatory on the vendor record. Without it, the vendor won't appear in the vendor lookup on the Subcontract.
• Confirm the Compliance Model before the first claim arrives. Changing it mid-contract is messy.
• Adding lines by hand is one line at a time. There is no paste or spreadsheet import. For lines that already exist on the estimate, Add Estimate Lines brings in as many as you tick in one go.
• From Signed, the Schedule of Values subtab becomes a read-only list. While the subcontract is Draft, Tendered or Awarded, the subtab shows the contract lines for you to edit. From Signed onwards it shows the contract as it stands instead: the original lines as SOV1, SOV2…, then the lines of approved and pending variations with their status, and two totals, Revised Contract Value (approved) and Total including pending. See Where variations show on the subcontract.

Related

• Raise a subcontract variation
• Approve a subcontract variation
• Assess a subcontractor claim
• Subcontract states
• Prequalification