Create a subcontract

Set up a new subcontract on 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
  • (Optional but useful) An approved cost estimate for the subcontract scope, for pre-populating the Schedule of Values — you can also hand-enter SoV lines
  • Subcontracts feature enabled for your subsidiary

Walkthrough

Walkthrough coming

A step-by-step Scribe walkthrough for this task is being recorded. Track its status in the Scribe register (internal).

  1. Open the project and navigate to the Subcontracts subtab.
  2. Click Create Subcontract. A new Subcontract record opens in Draft status.
  3. Select the Vendor (the subcontractor) and the Currency (defaults from the vendor's primary currency).
  4. Set the Contract Date, the Commencement Date (when work starts), and the expected Practical Completion Date.
  5. Choose the Contract Type — Lump Sum, Unit Rate, T&M, or Mixed (per-line billing types — useful when part of the scope is Lump Sum and part is T&M).
  6. Enter the Schedule of Values lines manually, or click Generate from Estimate to pull lines from an approved cost estimate.
  7. Save the subcontract — it remains in Draft while you finalise the SoV and contract terms.
  8. Move the subcontract through its lifecycle as the contract progresses: Tendered (optional — out for bids), Awarded (optional — vendor selected, contract being drawn up), and Signed (executed and approved). The subcontract becomes Active automatically on the Commencement Date.

What success looks like

  • A Subcontract record on the project's Subcontracts subtab, in Signed status (or Active if the Commencement Date has been reached).
  • The Schedule of Values lines are visible, and the subcontract total matches the sum of SoV line values.
  • A linked Purchase Order has materialised behind the scenes — this is the PO that any approved variation will amend automatically. You don't edit it directly.
  • The vendor sees the subcontract in their Connect web view at next sync (typically within seconds).

Gotchas

  • Subcontract POs are carved out of native NetSuite PO approval. Approval happens at the Subcontract layer; the linked PO inherits that approval. Don't approve the underlying PO manually.
  • Once Signed, the SoV is locked from direct edit. Any further change to the scope or value must go through a Variation — see Approve 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 subsidiary's Compliance Model before the first claim arrives. It drives the statutory response window and the Payment Schedule vs Pay Less Notice format — changing it mid-contract is messy.
  • Contract Type Mixed unlocks per-line billing types. Use it when the same subcontract has both fixed-scope lines (Lump Sum) and reimbursable lines (T&M). Set the billing type per SoV line.
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