Subcontracting


Subcontracting

Some methods in BIG are self-performed and some are subcontracted. Subcontracted methods have a few differences from normal self-performed methods. The first is that they are usually not affected by weather, uncertainty, labor availability or the Materials Cost Index. This is because in reality subcontractors would make a contract with your company for a set amount and things like weather and labor are their problem, not yours. In BIG, to use a subcontractor you simply select a subcontracted method.

Subcontractors bill you each period for work completed during that period. These bills are not due untill the next period, so they stay in your accounts payable for a period after which they will be automatically paid. This is in contrast to laborers hired by your company who must be paid in the same period that they completed their work.

If you use a subcontractor on a job with a retention policy, the retention policy applies to your payments to the subcontractor as well as the customer's payments to you. This means you retain a percentage of every payment until the job completes, at which time all retained amounts are paid.


Retention
Rescheduling Methods