Video 12 of 26 · Set Up

Subcontracts: Award to Executed

Set up the subbie, create the subcontract, build the SOV from your budget, approve it, and get it signed

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Watch the Subcontracts: Award to Executed video — Watch the Subcontracts: Award to Executed video on YouTube

Watch the video walkthroughhttps://youtu.be/b_sUGeGv0kg

In this walkthrough, you'll set up a subcontract in the Deep Space web app, from the moment you award the package to a signed, executed contract. We'll cover the subbie's company record, the contract terms, the schedule of values, approval, and e-signing.

The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)

Build an Estimate and Proposal Win
Multi-Trade Tender Win
Set Up Your Workspace Set Up
Add Users and Give Them Access Set Up
Company Settings: Get Your Documents Ready Set Up
Connect Xero and Map Your Cost Codes Set Up
Folder Templates and Project Documents Set Up
Document Templates vs Contract Templates Set Up
Email Templates and Sending Documents Set Up
Head Contract Setup Set Up
Build Your Programme Set Up
Subcontracts: Award to Executed Set Up
DS Site: Invites, Inductions and Site Sign-on Build
Drawings to Site and Subbies Build
Run Your Programme on Site Build
RFIs, Notices and the Project Inbox Build
Inbox to Xero: How the Money Flows Move the Money
Purchase Orders Move the Money
Process Supplier Invoices Move the Money
Subbie Claims: Inbox to Payment Schedule Move the Money
Retentions and Security Move the Money
Variations, End to End Move the Money
Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
Progress Claims to Your Client Move the Money
Budget and Forecasting Govern
Delegation of Authority Govern

Before you start

First, make sure the subbie is in your Company Directory, with the relationship type set to Subcontractor. Add a primary — First, make sure the subbie is in your Company Directory, with the relationship type set to Subcontractor. Add a primary contact, because that's who the agreement goes to.

If their tax ID, induction or bank details aren't verified yet, Deep Space warns you when you pick them. You can continu — If their tax ID, induction or bank details aren't verified yet, Deep Space warns you when you pick them. You can continue anyway, but get these sorted before the first payment.

Create the subcontract

You can start from the Budget Register. Click Create PO or Subcontract, then Subcontract.

Deep Space shows you the steps. Create it in the Subcontract Register, then link its schedule of values to your cost cod — Deep Space shows you the steps. Create it in the Subcontract Register, then link its schedule of values to your cost codes.

In Commercial, Subcontract Register, click New Subcontract.

Pick the contract type, here NZS 3910, and whether it's a subcontract or a professional services agreement. Name it, and — Pick the contract type, here NZS 3910, and whether it's a subcontract or a professional services agreement. Name it, and choose the subbie.

Enter the scope of work and the contract value, ex GST. Both print on the agreement.

Set liquidated damages, whether a stat dec is required with every claim, and the site contact. The site contact has to b — Set liquidated damages, whether a stat dec is required with every claim, and the site contact. The site contact has to be on the project team, so add them in Project settings, Team, first.

Choose the tax mode. Invoice means the subbie sends you a tax invoice. Choose BCTI in New Zealand, or RCTI in Australia, — Choose the tax mode. Invoice means the subbie sends you a tax invoice. Choose BCTI in New Zealand, or RCTI in Australia, if you raise the tax invoice for them. Then the accounting method, like lump sum percent complete, and the key dates. The defects period end works itself out from practical completion.

Set the security: retention, a bank guarantee, both, or none. Enter the retention rate and any cap, and choose whether v — Set the security: retention, a bank guarantee, both, or none. Enter the retention rate and any cap, and choose whether variations count. Retention control decides who sets the amount withheld. Automatic works it out on every payment schedule. Manual pre-fills it and lets you change it.

Finally, the claim cycle, the reference date, and payment terms. Deep Space calculates the next claim date and payment d — Finally, the claim cycle, the reference date, and payment terms. Deep Space calculates the next claim date and payment due date for you. Click Save Draft.

Build the SOV

Open the subcontract, go to the Schedule of Values tab, and click Open Full SOV Builder. The subbie claims against these — Open the subcontract, go to the Schedule of Values tab, and click Open Full SOV Builder. The subbie claims against these lines.

Click Import, then From Budget Register. You can also import from Excel.

Tick the cost codes this subcontract covers. You'll see the revised and remaining budget on each, so you can check what' — Tick the cost codes this subcontract covers. You'll see the revised and remaining budget on each, so you can check what's left.

Each estimate item comes in with its quantity, unit and rate, so the subbie can claim by quantity. Change the rates to t — Each estimate item comes in with its quantity, unit and rate, so the subbie can claim by quantity. Change the rates to the subbie's price before you import.

If the SOV doesn't add up to the contract value, Deep Space shows you the difference. Here we're one thousand seven hund — If the SOV doesn't add up to the contract value, Deep Space shows you the difference. Here we're one thousand seven hundred and twenty dollars short.

Click Add SOV Item for anything else in the price, here the bulkheads, and link it to a cost code. Every line needs one. — Click Add SOV Item for anything else in the price, here the bulkheads, and link it to a cost code. Every line needs one. Now it matches the contract sum. Click Save.

Don't have the breakdown yet? Add Placeholder gives you one line named after the subcontract. Convert it to a proper SOV — Don't have the breakdown yet? Add Placeholder gives you one line named after the subcontract. Convert it to a proper SOV line later. You can keep finishing the SOV right up until the first claim.

Approve it

On the Agreement tab, click Submit for Internal Approval. It follows your Delegation of Authority, and the contract deta — On the Agreement tab, click Submit for Internal Approval. It follows your Delegation of Authority, and the contract details lock. Watch for this warning. No one holds the Contracts Manager role on this project, so the step went to Highest Authority. Fill the roles in Project settings, Team.

Once each step approves, it moves on. Here the award step routes to the Project Manager, based on the contract value.

Get it signed

Once it's approved, it's ready to issue. Choose the document template and preview the agreement pack. Need a change? Rev — Once it's approved, it's ready to issue. Choose the document template and preview the agreement pack. Need a change? Revert to Draft.

The subbie signs first, then you countersign. Signed it outside Deep Space, in DocuSign or on paper? Upload the executed — The subbie signs first, then you countersign. Signed it outside Deep Space, in DocuSign or on paper? Upload the executed copy instead.

Click Send to Subcontractor. Check the PDF and the email, then add the subbie's signer. The first recipient is the prima — Click Send to Subcontractor. Check the PDF and the email, then add the subbie's signer. The first recipient is the primary signer. Click Send for Execution.

The subbie gets a secure link. They click the highlighted box, sign, and submit.

Back in Deep Space, the agreement shows it's waiting on your countersignature. Click Countersign Agreement and sign the — Back in Deep Space, the agreement shows it's waiting on your countersignature. Click Countersign Agreement and sign the same way.

The subcontract is now Executed. The signed pack is archived to the project's documents, under Commercial, Subcontract A — The subcontract is now Executed. The signed pack is archived to the project's documents, under Commercial, Subcontract Agreements. It's ready for claims.

After it's executed

The contract value now only changes through variations. Raise and approve them in the Variations register, and they show — The contract value now only changes through variations. Raise and approve them in the Variations register, and they show here.

Payment Conditions lists what the subbie must give you before they're paid, like insurances or a warranty. Set a default — Payment Conditions lists what the subbie must give you before they're paid, like insurances or a warranty. Set a default set under Company Settings, Commercial.

Common questions

I can't save the subcontract.

Check practical completion, start date and site contact. The site contact has to be on the project team, so add them in Project settings, Team.

I can't save the subcontract. — Check practical completion, start date and site contact. The site contact has to be on the project team, so add them in Project settings, Team.

The SOV doesn't match the contract value.

Adjust the rates or add an SOV item for the difference, until the contract sum match turns green.

The SOV doesn't match the contract value. — Adjust the rates or add an SOV item for the difference, until the contract sum match turns green.

Approval went to the wrong person.

A role in the route is empty on this project, so it went to Highest Authority. Fill the role in Project settings, Team.

Approval went to the wrong person. — A role in the route is empty on this project, so it went to Highest Authority. Fill the role in Project settings, Team.

The subbie signed on paper.

On the Agreement tab, click Upload executed copy. It marks the subcontract Executed and files it with the project.

The subbie signed on paper. — On the Agreement tab, click Upload executed copy. It marks the subcontract Executed and files it with the project.

Quick reference

Subbie in the Company Directory, compliance checked
New Subcontract: type, scope, value, terms
Tax mode, retention and payment terms
SOV: import from Budget Register, match the sum
Submit for internal approval (DoA)
Send for e-signing, then countersign

Need a hand? Email help@deepspacegroup.ai

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