About Contractor Order

This functionality ensures a structured subcontracting process by linking the assigned contractor to a Contractor Agreement, defining payment terms, and tracking the scope of work.

Contractor Orders can be created manually from the following pages/tabs:

• Request Details – Services
• Request Details – Tasks
• Request Scope and
•  Request Work Task 

They can also be created automatically based on Selection Rules or when a contracted resource is assigned to a task. The status of a newly created Contractor Order will always be New.

Each Contractor Order provides visibility into:

• Assigned Service Contractor.
• Defined Agreement and Agreement Line.
• Cost Rule governing the purchase costing.
• Whether the contractor covers all tasks in a scope or specific tasks through the Subcontracted badge.
• Contractor Order status.
• Linked payment lines for cost.
• Authorization Limit which was predefined on the Contractor agreement line, in order to limit the funds authorized for a specific service.
• Authorization status that indicates whether the Contractor Order exceeds the predefined authorization limit and requires additional approval or whether the exceeded limit was already approved.
• Total Amount that provides the overall cost of the Contractor Order.

Automatic Creation of Contractor Payment Lines During Contractor Order Creation

When a Contractor Order is created for a Task or Scope, the system automatically generates payment lines based on the Planning Lines from the associated task.

The payment lines are created for cost types by fetching the relevant Default Purchase Parts defined in the Service Contractor. This includes necessary details such as Quantity (Qty), Unit of Measure (UOM) and Purchase Price.

Additionally, if there are fixed cost lines defined on the agreement lines linked to the Contractor Order, payment lines for those fixed cost lines will be automatically generated with the fixed costs, cost type, and purchase part defined on the agreement lines.