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 mandatory path
The shortest, mandatory path through the lifecycle is:
Draft → Signed → Active → Closed
Three additional optional states (Tendered, Awarded, PC, DLP, Final) are available, and your administrator can enable or hide each one per subsidiary to match how your business actually runs.
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 | optional | Vendor selected, contract document in preparation | Signed (once executed) |
| 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 |
| 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.