Subcontractors
With the subcontractor feature in Costpoint, you can track insurance, bond, and lien information at the vendor level.
In Costpoint, the word "subcontractor" identifies those workers who are performing work for your company where part of their obligation as a vendor is to obtain and maintain a certain insurance and/or bond status. In addition, some vendors may need to prove that their work is free of any liens (legal claims) before payment is released. The term "subcontractor" in Costpoint does not identify all workers who are independent contractors or temporary workers.
Before you activate a vendor as a subcontractor, you need to meet with your company's contract administrator or project manager to discuss the vendor's status for liens, insurance, and bonds. When you activate the subcontractor function, Costpoint makes extra validations before payment can be released, but makes an exception for manual checks. Costpoint assumes that you are entering the check information after you write and send the check; it is impossible to hold a payment that has already been made.
If you activate the subcontractor function for vendors that do not require it, you could unnecessarily delay processing of your payables. For vendors who have both subcontractor status and normal vendor status, Deltek recommends that you create two separate vendor accounts.
When reviewing subcontractor information, remember that the voucher vendor, rather than the pay vendor, will be compared before payment is allowed.
- Related Topics:
- Liens
A lien is a legal claim against another's property. Business liens are often for construction or other large projects. - Checklist: Complete Liens Information
Use the information that you receive from your contract administrator or project manager to complete the l information in Costpoint. - Insurance
Depending on the type of product or service that you are buying, your subcontractor may be required to obtain insurance coverage. - Subcontractor Checklist: Complete Insurance Information
Use the information provided by your contract administrator or project manager to complete the insurance information in Costpoint. - Bonds
Two types of bonds are predefined in Costpoint: Bid and Performance. - Subcontractor Checklist: Complete Bonds Information
Use the information you received from your contract administrator or project manager to complete the bonds information in Costpoint. - Projects and Subcontractors