The Business-to-Business (B2B) sub contract collaboration allows the Contractor (supplier) to create an Application for Payment (AFP), enter application values, and submit these to the Contract Owner. The Contractor can then follow up on the certified values from the Contract Owner and indicate that these have been invoiced.
The Contractor can also view the contract, view and attach documents to the contracts or applications for payment, and monitor that certifications and payments have been received from the Contract Owner.
The valuation can be created either by the Contract Owner or it can be automatically created when the Contractor creates an application for payment. If it is created by the Contract Owner, the B2B-status of the valuation needs to be set to Released to be visible and possible to update by the Contractor. If it is created by the Contractor it is automatically set to Released.
When the B2B-status of the valuation is Released (or In Progress) the application for payment is visible for the Contractor and can be updated. The application values are entered by the Contractor and indicates the accumulated work and material the Contractor wants to get paid for. When the Contractor is ready, the application for payment will be submitted to the Contract Owner.
When the Contractor has started to update the application values, the B2B-status of the valuation is changed from Released to In Progress, and when the application for payment is submitted it is automatically updated from In Progress to Submitted.
This is done by the Contract Owner. The Contract Owner can monitor valuations that have a B2B-status set to Submitted which means that the Contractor is ready with entering the application values. The Contract Owner can check these values against the valuation values and if necessary change the application values before raising the valuation status from Planned to Application Received.
This is also done by the Contract Owner. Based on the valuation, the Contract Owner may enter other certified values than what have been entered as application values. When the status has been raised to Certified these certified values are visible for the Contractor.
Unless self-billing is used the Contractor will follow up the certified values from the Contract Owner. The Contractor will manually create an invoice and send this to the Contract Owner. When the invoice is sent the Contractor indicates this by clicking Invoice Sent which will update the B2B-status.
If self-billing is used this follow up step is by-passed as the system automatically creates the invoice based on the certified values when the valuation is set to Certified.
The Contractor can monitor the invoices and payments that the Contract Owner has registered in each application for payment.
The construction company BuildWell Ltd. is hired by Skyline Enterprises to construct a new office complex. BuildWell Ltd. is the Contractor responsible for executing the construction work, while Skyline Enterprises is the Contract Owner and oversees the project’s progress and manages financial transactions.
When the first phase of the construction is completed, Skyline Enterprises (Contract Owner) creates a valuation for this phase and sets it to Released, making it visible and updatable by BuildWell Ltd. (Contractor). Alternatively, BuildWell Ltd. can create an Application for Payment (AFP), which automatically sets the valuation to Released.
With the valuation status set to Released, BuildWell Ltd. enters the application values, representing the work completed and materials used in the first phase. After entering the values, BuildWell Ltd. submits the AFP to Skyline Enterprises. The status changes from Released to In Progress, and upon submission, it updates to Submitted.
Skyline Enterprises then receives the AFP and reviews the submitted values. They compare these values with their own records and make any necessary adjustments before updating the valuation status from Planned to Application Received.
Next, Skyline Enterprises certifies the values based on their review. These certified values may differ from the application values submitted by BuildWell Ltd. Once certified, the status is updated to Certified, and the certified values are made visible to BuildWell Ltd.
Finally, BuildWell Ltd. follows up on the certified values from Skyline Enterprises. If self-billing is not used, BuildWell Ltd. creates an invoice based on the certified values and sends it to Skyline Enterprises, marking the invoice as sent. If self-billing is used, the system automatically generates the invoice when the valuation is certified. BuildWell Ltd. monitors the invoices and payments registered by Skyline Enterprises.