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Note: This subtask is unavailable if you selected the Payroll Vendor checkbox on the main screen. |
When Costpoint uses the word "subcontractor," it is not referring to all workers that are independent contractors or temporary workers. It is identifying only those workers who are performing work for your company and are obliged as a vendor to obtain and maintain certain types of insurance and/or bond status. In addition, some vendors need to prove their work is free of any liens (legal claim) before payment is released.
Before you activate a vendor as a subcontractor, meet with your company's contract administrator or project manager to discuss the vendor's status for liens, insurance, and bonds.
When this subtask is activated, the system performs extra validations before payment can be released. These extra validations require processing time, so we encourage you to use this subtask only for those vendors that qualify as subcontractors.
Use this subtask whenever you need to have the system perform extra validations before payment is released.
If you select this checkbox, your vendor will be identified as a subcontractor and all of his vouchers will be subject to subcontractor validations. When performing these validations, the system will first check to see if your subcontractor is subject to a lien; if no active liens are present, it will then review insurance and bond coverage. The system will produce a warning and keep payment on hold if you try to make payment when the subcontractor's insurance and/or bond is not in effect.
Enter insurance and/or bond coverage information in the Subcontractor Insurance Types (Accounting\Configure\Vendors) screen or the Subcontractor Bond Types (Accounting\Configure\Vendors) screen. Only vendors that have been designated subcontractors here can be entered in those screens.
If the subcontractor has an active lien, payment will be held, no matter what the insurance or bond status. The system will produce a warning and keep payment on hold if you try to make payment when the subcontractor has a lien in effect.
Invoice - Make this selection if you want the system to compare the invoice date of the vendor voucher with the effective dates for insurance and bonds. If a subcontractor is required to have, but is not covered by, an insurance policy or a bond on the invoice date, payment will be held.
Invoice Period of Performance - Make this selection if you want the system to compare the invoice period of performance date with the effective dates for insurance and bonds.
Invoice period of performance for a bond or insurance is represented as a range of dates entered on either the Subcontractor Insurance screen or the Subcontractor Bonds screen. If a subcontractor is required to have, but is not covered by, an insurance policy or a bond on the invoice period of performance date, payment will be held.
Payment Selection - Make this selection if you need the system to compare the payment selection date (the system date on which payment selection is being performed) with the effective dates for insurance and bonds. If a subcontractor is not covered by an insurance policy or a bond on the payment selection date, payment will be held.
Changes to this screen update the VEND (Vendor) table.
