Comprehensive reference management of subcontractors business !!

Comprehensive Reference Management Of The Business Of The Subcontractor In Your Company

Babel series in the management of construction companies

Who is the subcontractor in contracting accounts?

Within the contracting companies there are a number of roles in the performance of the work, the most important role of the subcontractors after the assignment of the work to the company, the company in turn to support some of the specialized work such as drilling - insulation - carpentry - iron - whiteness ... etc ) to subcontractors because of the inability of companies To provide adequate and specialized workers or lack of expertise in these areas:

The first step:-

is to assign the work to the subcontractor through the technical office of the company where the contract is signed on the work and implementation prices and quantities to be implemented and the time period and the payment system of the contractor through subcontractors contracts subcontractor

A form of subcontractor contract

There are some cases where the amount of work assigned to the contractor large need to provide some of the workers or to supply some of the raw materials must be disbursed payment submitted to the contractor to enable him to do so and the accounting constraint as follows:

Registration of the advance payment to the subcontractor

The company may provide the contractor with certain needs such as workers, equipment or materials, provided that such items are deducted from its value. For example, if the company provides the contractor with certain materials, the accounting guidance shall be as follows:

Dispensing materials to the contractor from the company's warehouses

the second step:-

After that the work cycle begins and the abstracts are raised in the quantities of works performed for the subcontractor. The site engineer will inventory the executed works for each contractor and work extracted from these works

The accounting guidance of the abstract of the executed works

To ensure avoidance of errors in the implementation or delivery of the work of the owner is the deduction of financial ratios agreed between the parties the subcontractor and the face of the support called the guarantee of business until the project delivery period to the owner then respond to the contractor

Accounting guidance for the abstract with discount business guarantee

Also, there may be some deductions to the subcontractor as damaged materials. For example, LE 850 was deducted from the contractor

Accounting guidance for abstract with deductions

There is an agreement that the payments made upon the maturity of the contractor's abstracts be deducted, for example, a deduction of 10% of the value of the works of each abstract shall be deducted until the payment value is satisfied.

Accounting guidance for the deduction with deduction of advance payments

The third Step:- 

After that, the competent accountant will follow up the process of disbursement to the contractor and what was previously disbursed and compared with the abstracts submitted to the contractor to avoid disbursement of more than the receivable to the contractor

The accounting guidance for payment of payment to the contractor

More details about dealing with the system of subcontractors

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