Sub-Tier Variation Management for Prime Contractors

As a Subcontractor working on a Head Contractor's project on TPM, you may need to hire and track the work of Sub-Tier Subcontractors. A Sub-Tier Subcontractor either performs work for your organisation or provides supplies.

Though rare, there are instances where you might need to track a Sub-Tier Subcontractor's billing through TPM and require the Sub-Tier Subcontractor to submit a progress claim each claims period. To allow a Sub-Tier Subcontractor to claim through TPM, you will create a subcontract for the organisation. This is similar to the contract shared between your organisation and your Head Contractor. After you create a subcontract for a Sub-Tier Subcontractor, your organisation will take on the role of a Prime Subcontractor.

If at a later time you need to adjust the value of the the Sub-Tier Subcontractor's subcontract, you can either increase or decrease it with a Sub-Tier variation. The following topics explain how to create and delete these Sub-Tier variations on TPM.

Subcontract Variations

As a Prime Subcontractor organisation, create subcontract variations (SV) to change the contract value of a Sub-Tier subcontract.

After creating the SV, the application generates an email for the Sub-Tier as a reminder to edit the WB to allocate the variation. The Sub-Tier WB will be out of balance until the variation is allocated.

Keep the following in mind:

Any modification to Sub-Tier subcontract totals requires the creation of a SV.
Each Sub-Tier subcontract to be modified requires a separate SV.
SVs that create a new component will automatically allocate the new component to the Sub-Tier's WB.
SVs that change existing components will require the Sub-Tier to allocate the variation. If you chose to use the Specified WB setting for a Sub-Tier's contract, you will allocate the variation instead of the Sub-Tier because you have control of the Sub-Tier's budgeting on TPM.
Adjustments for each separate variation are made independently of one another (not at the same time). The system displays variations one-at-a-time on the Allocate Variation page.

See Creating Sub-Tier Subcontract Variations in the online help or in this guide for detailed instructions.

Creating Sub-Tier Subcontract Variations

Deleting Sub-Tier Variations

Next: Creating Sub-Tier Subcontract Variations