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Requisition - An Internal document used to initiate the process of engaging a subcontractor.
Subcontractor Agreement - Official contract that defines It is an internal document that defines and manages the portion of the project BOQ
Subcontractor Agreement Revision - Update to an existing agreement, such as modified rates or terms, without changing the scope of work, payment terms, and conditions.
Subcontractor Agreement Variation - Formal amendment to the agreement reflecting changes in project scope, value, or deliverables.
Advance Payment - Optional upfront amount paid to the subcontractor as per the agreement terms. Adjustment where advance payments are deducted from the total invoice amount.
Payment Application (Incoming) - Claim submitted by the subcontractor for work completed.
Payment Certificate (Outgoing) - Document issued by the internal team confirming and certifying the approved payment amount.
Invoice Received - Invoice provided by the subcontractor based on the certified payment.
Debit Note - Issued to correct overpayments or to record penalties and financial deductions.
Retention Claim Invoice Received - Final invoice raised for the retained amount after project completion or defect liability period.
Subcontractor Agreement Revision - Update to an existing agreement, such as modified rates or terms, without changing the scope of work.
Subcontractor Agreement Variation - Formal amendment to the agreement reflecting changes in project scope, value, or deliverables.
Retention
Retention is a contractual mechanism used in subcontractor agreements to withhold a portion of each payment, typically 5–10%, to ensure work is completed according to specifications and to cover potential defects or post-completion issues. The retention percentage and retention period are defined at the contract level, and these settings automatically apply to all related documents.
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Advance Tracking
The system lets allows recording advances paid to subcontractors be tracked and applied automatically applies them to future invoices for work done. This makes sure that the subcontractor is paid only the remaining balance, avoiding overpayment.The completed work, ensuring that only the outstanding balance is paid and preventing overpayments.
Each advance is linked to the corresponding Invoice Received using through a prepayment. Users can see how much of the advance has been used and how much is still available.Although the adjustment happens , enabling users to track the utilized and remaining advance amounts.
While the adjustment primarily occurs in the Invoice Received, it can also be linked to through other documents , like such as the Payment Application Received and or Payment Certificate Issued. If linked there, it automatically updates , in which case the Invoice Received is automatically updated, and offset can be donethe offset is processed accordingly.