Subcontract states
Every subcontract moves through a sequence of states from creation to closure. This page lists each state, what it means, and when the subcontract supports claims and variations.
The shortest path
The shortest path through the lifecycle is:
Draft → Awarded → Signed → Active → Closed
Awarded cannot be skipped. A subcontract can only reach Signed from Awarded, and the commitment purchase order is generated on that Awarded → Signed step — so a subcontract that somehow arrives at Signed by another route has no PO and nothing to claim against.
Four further states — Tendered, PC, DLP and Final — are genuinely optional. Use the ones that match how your business runs and move past the rest.
Moving a subcontract to its next state
Use the buttons at the top of the subcontract. They appear when you're viewing the record, not editing it, and each one names the action rather than the state you land in:
| Button | Moves the subcontract to |
|---|---|
| Send to Tender | Tendered |
| Award | Awarded |
| Sign | Signed |
| Commence | Active |
| Practical Completion | PC |
| Start DLP | DLP |
| Final Account | Final |
| Close | Closed |
| Cancel Subcontract | Cancelled — opens a page where you record the reason |
Only the next step forward is offered. From Draft you'll see both Send to Tender and Award, because both are valid next steps. If your subsidiary has switched an optional state off, the button skips over it to the next state that's on.
Sign asks you to confirm, because signing raises an approved purchase order to the subcontractor for the contract value. Signing is also where prequalification is checked.
If a step isn't allowed — for example, prequalification fails — the subcontract stays where it is and you see a page headed This status change was not allowed with the reason and a link back.
Moving backwards isn't a button. Returning a Tendered or Awarded subcontract to Draft is an administrator correction, made by editing the Status field directly. For everyone else the Status field is display-only, so the buttons are the way to change it.
State reference
| State | Mandatory? | What it means | Typical next step |
|---|---|---|---|
| Draft | ✓ | PM is building up the contract | Tendered (bid path) or Awarded (direct award) |
| Tendered | optional | Out for bids from vendors | Awarded (once a bid is selected), or back to Draft |
| Awarded | ✓ | Vendor selected, contract document in preparation | Signed (once executed) — this step generates the purchase order |
| Signed | ✓ | Contract executed and approved | Active (on the commencement date) |
| Active | ✓ | Work in progress, claims flowing | PC (on practical completion), or Cancelled |
| PC | optional | Practical Completion certified | DLP (once PC retention is released) |
| DLP | optional | Defects Liability Period running | Final (on DLP end date) |
| Final | optional | All works completed, final retention released | Closed |
| Closed | ✓ | Fully closed out — terminal | — |
| Cancelled | ✓ | Terminated before completion | — |
Allowed transitions
| From | To | Condition |
|---|---|---|
| Draft | Tendered | Bid process initiated |
| Draft | Awarded | Direct award |
| Tendered | Awarded | Bid awarded |
| Tendered | Draft | Reopen bid |
| Awarded | Signed | Signed contract + approval; the subcontractor passes prequalification |
| Awarded | Draft | Revert to drafting |
| Signed | Active | Commencement date reached |
| Active | PC | Practical Completion sign-off approved |
| PC | DLP | PC retention released |
| DLP | Final | DLP end date reached |
| Final | Closed | Manual by AP after final bill settled |
| (any) | Cancelled | With reason |
When claims and variations are allowed
Some actions are only allowed in specific states. The table below shows the windows.
| Action | Allowed states |
|---|---|
| Submit a claim | Active, PC, DLP, Final |
| Approve a variation | Signed, Active, PC, DLP |
In other words, you can claim once the contract is active and any time afterwards through Final; you can vary once the contract is Signed and until DLP completes. Final is too late for new variations (raise an offsetting variation against an earlier-approved one if a correction is needed — see Approve a subcontract variation).
Cancellation
Cancellation is terminal and requires explicit pre-conditions:
- No outstanding unpaid Vendor Bills
- All open Claims in terminal states or withdrawn
- Any unapproved Variations auto-withdrawn
- Explicit retention disposition (release schedule or forfeit terms defined)
- Mandatory cancellation reason
Cancellation also requires top-level approval regardless of subcontract value.