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Former Member
Aug 22, 2011 at 02:25 AM

Nominated Sub-contract processing in SAP?



Nominated sub-contract is a common practice in construction industry. The definition is u201CThe Principal independently invites tenders for the work under a subcontract, negotiates the subcontract and directs the main contractor to enter into a subcontract with the Nominated Subcontractor selected on terms and conditions negotiated by the principalu201D. Below is some reference.

Assuming our company is the principal that will award contract and sub-contract to main-contractor and nominated sub-contractor respectively, and Payment will be settled in the main contract?

Can SAP support the process from initiation to issue of sub-contract to nominated sub-contractor while ensuring no subsequent goods receipt, LIV, payment?

How to maintain the relationship between main and sub-contract in SAP so that any variation order of sub-contract can be reflected in the main contract?