Initial Exercises—Sub Contract Management

Initial Exercises

Purposes: The purpose of these initial exercises is that the instructor will use them for demonstrating the basic functionality in Sub Contract Management, which entails:

In this example, we will cover some aspects of building construction. You, the general contractor or owner of the project, will contract different suppliers of labor and material to complete different subcomponents of a project for constructing a high-rise building that is 7 stories in height. The building itself will comprise a basement car park, retail space/office space and a restaurant on the 7th floor. The design phase of the project is completed. We will use the Sub Contract Management solution to follow through the life cycle of this construction project.

IMPORTANT
These initial exercises are intended for instructor use.

If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Creating Sub Contract Basic Data

Purpose: The purpose of this exercise is to introduce you to the basic functionality for setting up necessary sub contract basic data.

Windows:
Sub Contract Basic Data

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract Basic Data window.
  2. Click the Contract Type tab and create a new record (F5).
  3. Enter a sub contract type using the information in the following table:
Contract Type Type Description
CON Construction
  1. Save the record (F12).
  2. Click the Deduction tab and create a new record (F5).
  3. Enter a deduction type using the information in the following table:
Deduction Type Deduction Name Percentage (%)
ITB Industry Training Board

10
  1. Save the record (F12).
  2. Click the Address Type tab and create a new record (F5).
  3. Enter an address type using the information in the following table:
Address Type Address Type Description
DEL Delivery
  1. Save the record (F12).
  2. Click the Reason Code tab and create a new record (F5).
  3. Enter a reason code using the information in the following table:
    Reason ID Reason Type Reason Description
    AWARD Awarded Excellence in Quality
  4. Save the record (F12).
  5. Click the Task Type tab and create a new record (F5).
  6. Enter task types using the information in the following table:
    Task Type Task Type Description
    ADMIN Administration
    FUNC Functional
  7. Save the records (F12).
  8. Click the Work Instruction Type tab and create a new record F5).
  9. Enter work instruction types using the information in the following table:
Type Description
1 High Priority
2 General
3 Low Priority
  1. Save the records (F12).

Creating Sub Contract

Purpose: The purpose of this exercise is to introduce you to the basic functionality for creating a sub contract. Here, we will create a sub contract for the construction of the high-rise building. Supplier 5000 has been preselected to perform the work detailed in this sub contract.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract
 Sub Contracts

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Create a new record (F5) and enter a sub contract using the information in the following table:
Contract Name Contract Type Supplier ID Company Currency Contract Manager Site
Building contract - High-rise

CON

5000

10

USD

ALAIN

1
  1. Save the record (F12).

Adding Sub Contract Default Values

Purpose: The purpose of this exercise is to introduce you to the basic functionality for adding default values to the sub contract. Default values are used to register information on the payment and valuation of the sub contract. Here, we will enter the method by which payments are to be processed; we will only do payment, i.e., issue a check, after receiving an invoice from the supplier. There will be no discount on the sub contract. Note: Application for Payments is allowed (Not covered in these exercises), and will be received from the supplier in order to create payment certificates. Each item on the sub contract will be valuated on basis of progress. Certified values will be entered on the sub contract item level.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created in the previous exercise.
  3. Click the Defaults tab.
  4. Enter default values for the sub contract using the information in the following tables:
Payment Term Payment Method Currency Type Valuation Method Payment Process

10

CHK

1

Progress

Pay After Invoice
Interim Retention (%) Final Retention (%) Certificate Response Days Percentage to Recognize (%)

10

5

5

100
Receive Application Item Level Certificate Activity Required

Selected

Selected

Not Selected
  1. Save the record (F12).

Adding Contract Lines and Items

Purpose: The purpose of this exercise is to introduce you to the basic functionality for adding lines and items to the sub contract. Here, we will add lines and items detailing the work and material required to lay the foundation and build the high-rise building.

Prerequisites: The Creating Sub Contract exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Items tab.
  4. Enter a sub contract line using the information in the following table:
Line Number Line Name Line Description
1 Foundation Foundation
  1. Save the record (F12).
  2. Select the row you just created, and then create a new record (F5) in the lower table of the window. Enter 6 sub contract items using the information in the following table:
Item Number Item Name Item Description Value Item Currency
1 Concrete Pour 1st layer of concrete 10,000.00 USD
2 Preboring Preboring holes for piling   7,500.00 USD
3 Load test Piling load tests 10,000.00 USD
4 Structure Drive prefabricated steel piles into the ground 50,000.00 USD
5 Backfill Backfill prebored holes with dry sand 20,000.00 USD
6 Fill Fill structure with concrete 30,000.00 USD
  1. Save the records (F12).
  2. Similarly, create a new sub contract line and connect 4 items using the information given in the following tables:
Line Number Line Name Line Description
2 Masonry Masonry Construction
Item Number Item Name Item Description Value Item Currency
1 Concrete Pre-stressed concrete blocks   10,000.00 USD
2 Masonry walls Build concrete walls/floors 100,000.00 USD
3 Fill Fill hollow cores    7,500.00 USD
4 Reinforce Embed reinforcing steel into masonry  20,000.00 USD
  1. Save the records (F12).

Adding and Executing Sub Contract Tasks

Purpose: The purpose of this exercise is to introduce you to the basic functionality for adding tasks to the sub contract. These tasks serve as information/guidance for the personnel that are directly working with the sub contract.

Prerequisites: The exercises Creating Sub Contract Basic Data and Creating Sub Contract must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Tasks tab.
  4. Enter the list of tasks as shown below:
Task Name
Review Scope
Activate Revision
Release Sub Contract
Submit Invitation
Award Sub Contract
Review Sub Contract
Activate Sub Contract
Execute Sub Contract
Complete Sub Contract
Close Sub Contract
  1. Save the records (F12).
  2. Enter the planned/actual start and finish dates as well as the personnel responsible for each task.
  3. In this example, we will update and execute the Review Scope task by using the information in the following table:
Task Name Task Type Planned Start Date Planned Finish Date Responsible ID

Review Scope

ADMIN

 1 month prior to today's date Today's date

ALAIN
  1. Save the record (F12).
  2. To activate the task, select the row, right-click, point to Status and then click Activate.
  3. To complete the task, select the row, right-click, point to Status and then click Complete.

Adding Sub Contract Deductions

Purpose: The purpose of this exercise is to introduce you to the basic functionality for adding deductions to the sub contract.

Prerequisites: The exercises Creating Sub Contract Basic Data and Creating Sub Contract must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Deduction tab.
  4. In the Type field, enter ITB. The information in the Deduction Name and Percentage (%) fields will appear automatically.
  5. Save the record (F12).

Adding Sub Contract Contacts

Purpose: The purpose of this exercise is to introduce you to the basic functionality for adding contacts to the sub contract.

Prerequisites: The exercises Creating Sub Contract Basic Data and Creating Sub Contract must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Contacts tab.
  4. Create a new record (F5) and enter the information shown in the following table:
Address Code Address Name Certificate Address Address Type Code Address Type

1

Site

Selected

Delivery

DEL
  1. In the Country field, enter the country.
  2. In the Address field, enter the address of the contact.
  3. Save the record (F12).
  4. Create a new record (F5) in the table of the window.
  5. In the Name field, enter the contact's name.
  6. In the Communication Method field, enter Phone.
  7. In the Value field, enter the phone number of the contact.
  8. Save the record (F12).

Approving and Activating Sub Contract Revision

Purpose: The purpose of this exercise is to introduce you to the basic functionality for approving and then activating a sub contract.

Prerequisites: The Creating Sub Contract exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Revision tab.
  4. Select revision number 1, right-click, point to Status and then click Start Approval. The Start Approval dialog box opens.
  5. Click OK.
  6. Select the row, right-click, point to Status and then click Approve.
  7. To activate the revision, select the row once more, right-click, point to Status and then click Set Active. The Activate Sub Contract Revision dialog box opens.
  8. Click OK.

Releasing Sub Contract

Purpose: The purpose of this exercise is to introduce you to the basic functionality for releasing a sub contract.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Right-click on the header of the window, point to Status and then click Release.
  4. A message requiring approval of the step appears, click Yes.
  5. Verify that the sub contract is in the Released status.

Submitting Sub Contract

Purpose: The purpose of this exercise is to introduce you to the basic functionality for submitting a sub contract. Here, we will submit an invitation to tender to the supplier that is associated with the sub contract.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Right-click on the header of the window, point to Status and then click Submit Invitation. The Submit Invitation to Tender dialog box opens.
  4. In the Invitation Response Date field, enter a suitable date.
  5. Clear the Freeze Revision check box.
  6. Click OK.
  7. Verify that the sub contract is in the Submitted status.

Note: If you have more than one supplier connected to the sub contract, you need to perform this exercise using the Supplier tab. (This scenario is covered in the Create Sub Contract and Requirements chapter.)

Awarding Sub Contract

Purpose: The purpose of this exercise is to introduce you to the basic functionality for awarding a sub contract to the chosen supplier. This supplier will be the sub contractor of the work, i.e., construction of the high-rise building.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Right-click on the header of the window, point to Status and then click Award. The Award Sub Contract dialog box opens.
  4. In the Reason ID field, enter AWARD.
  5. Verify that the supplier this sub contract is to be awarded to is supplier 5000.
  6. Click OK.
  7. Verify that the sub contract is in the Awarded status.

Creating and Releasing Call Off

Purpose: The purpose of this exercise is to introduce you to the basic functionality for creating and managing call offs on the sub contract.

Prerequisites: The previous exercise must have been completed.

Windows:
Sub Contract
 Sub Contract Call Off Items

Steps: To complete this exercise, perform the following steps.

 

Creating Call Off:

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Call Off tab and create a new record (F5).
  4. Save the new call off record you created (F12).
  5. Right-click on the call off, and the click Call Off Items. The Sub Contract Call Off Items window opens.
  6. In the Call Off Value field, found in the lower table of the window, enter call off values for each item.

Note: You can manually enter call off values per item or use the available right mouse button menu option. In this exercise, we will use the Call Off Full Amount option.

  1. Select all item rows, right-click and click Call Off Full Amount.
  2. Verify that the Call Off Value field, contains the correct information.

Releasing Call Off:

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Call Off tab.
  4. Observe the information for the call off record you created.

Note: You can release the call off in the Call Off tab by right-clicking and clicking Release or by using the Sub Contract Call Off Items window as shown in the following steps:

  1. Right-click the call off, and then click Call Off Items. The Sub Contract Call Off Items window opens.
  2. Right-click anywhere in the header, and then click Release.
  3. Verify that the sub contract call off item is in the Released status.

Issuing Work Instructions

Purpose: The purpose of this exercise is to introduce you to the basic functionality for creating and issuing work instructions on the sub contract. Here, we will enter work instructions for laying the foundation of the high-rise building. In this example, we will enter work instructions on all three levels, i.e., contract, line and item levels.

Prerequisites: The previous exercises must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Click the Work Instructions tab and create a new record (F5).
  4. Create a work instruction header by using the information in the following table:
Instruction No Instruction Description Type Responsible ID

1

 Lay Foundation for High-rise Building

1

ALAIN
  1. Save the record (F12).
  2. Right-click the work instruction, and then click Work Instruction Details. The Sub Contract Work Instructions window opens.
  3. Enter work instruction details by using the information in the following table:
Instruction Line Number Instruction Line Description Line Number Item Number
1 Purchase Material - -
2 Dig 1 -
3 Fill Concrete 1 1
4 Do Preboring 1 2
5 Piling Foundation 1 4
6 Do Load Tests 1 3
7 Backfill Prebored Holes 1 5
8 Foundation 1 6
  1. Save the records (F12).
  2. Similarly, create another work instruction header and details and enter valid information for the masonry work that is to be done.
  3. To release the work instructions for the sub contract, right-click anywhere in the header, point to Status and then click Release.
  4. Verify that the work instruction is in the Released status.
  5. To print the work instruction, right-click anywhere in the header, and then click Print Work Instructions.
  6. To change the work instruction status when sending the work instruction to the supplier, right-click anywhere in the header, and then click Send.
  7. Verify that the work instruction is in the Sent status.

Closing Sub Contract

Purpose: The purpose of this exercise is to introduce you to the basic functionality for closing the sub contract.

Prerequisites: The previous exercises must have been completed.

Windows:
Sub Contract

Steps: To complete this exercise, perform the following steps.

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the sub contract you created previously.
  3. Right-click anywhere in the header, point to Status and then click Activate.
  4. Verify that the sub contract is in the Active status.
  5. Next, right-click, point to Status and then click Complete.
  6. A message requiring approval of the step appears, click Yes.
  7. Verify that the sub contract is now in the Completed status.
  8. To close the sub contract, right-click anywhere in the header, point to Status and then click Close. The Close Sub Contract dialog box opens.
  9. Click OK.
  10. Verify that the sub contract is in the Closed status.