11.7 Subcontract Schedule Maintenance (11370m)

To manage the Subcontract relationship, Muli uses a separate subcontract payment schedule that achieves a number of goals:-

• Advises the subcontractor of the current contract value by listing original and all approved amendments to the contract.
• Advises the subcontractor of the Head Contractor's assessment of the values of work done on each schedule item.
• Through the correct use of Risk2Do items, lists outstanding administration / Quality / Procedure issues required to be addressed.
• Provides a Notice under the Security of Payments Act of proposed payments and reasons for differences to claimed amounts.
• Provides a clearly summarised contractual position each time a Subcontract payment is processed.

1. Project/Order
2. Allocation
3. Order
4. Amendment
5. Sequence No.
   A 4-digit number allowing up to “999” elements to be identified per original order or amendment.
6. Description
   A 40-character Element identification field
7. Stage
   Where a project has stages, please use. However, if the total Order has been allocated to a Stage, then all elements may only be in that Stage. “000” is equivalent to not allocated to any Stage.
8. Schedule Value
9. Print - Yes/No
10. Quantity
    If a quantity is entered here, then there is an applied rate and at various update processes, Quantity as well as $ will be requested. (Quantity is not treated as a limiting number for approval, only cost)
11. Unit Type
12. Time Scheduling Item - Yes/No
    If it is a scheduling item, then access to scheduling date input application will become available.
13. Earned Value
    What value should this item earn on an Accounts Receivable basis [6.3] In Version 3, there will be a 3-way of developing a progress claim based on the sum of (Earned Values x % Complete). This will need a set of rules to ensure that the sum of the Earned Values equals the contract value and that preliminary is fully recovered.
14. Activity Start Date
    Date activity expected to Start
15. Activity End Date
    Date activity expected to Finish
16. Cash Flow Curve 456
    While provision is made for each Element to be apportioned, a Cash Flow Curve to distribute to recognise the incurred cost/income between Start and End Dates. As these are relatively small values, just using a straight line for each element is realistic.
17. Percent Complete
    Provision is made to update this value by a number of methods:-
    
    • Update of S/C Progress Claim
    • Update of Scheduling Item
    • Directly updating here

    Percent method 458

By default, the date of method/reason will be of the last update and is retained, along with RPC. While the whole subcontract will be default form a single Schedule item (9998), Muli recommends that major subcontractors are broken down so no element is greater than $50,000.

• Any elements in different project stages are clearly apportioned to their relevant stage.
• Any item of work not normally in the subcontract scope is individually identified.
• If you need the subcontractor to achieve progress goals, then break the contract down, say by levels of the building or different lots.
• Where a project is a series of habitable spaces or houses, identify the house.

Each amendment to the subcontract will be a separate element.

Once open, ALL elements for the Order are displayed in the bottom box and the User may select the item to be raised. Where a 998 element has been raised, you will need to reduce the contract amount of that record to say '0' as the application will not allow you to allocate more than the contract value. The 998 record will automatically take up any unallocated amount when you do a subcontract progress payment.