Fix Price subcontracts in Project Service Quote calculation

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Posted on by Filip Tomanek

Hello, we are struggling with Fixed Price subcontracts in Project Service Quote calculation. We are unsure whether to create custom functions or if standard Project Operations functions can be used. We are currently implementing Project Operations - Lite Deployment. We are acting as a system integrator on the projects and, in addition to our own services, we are also delivering deliveries from other IT companies as part of the final solution.

We need to include Fixed Price subcontracts in the calculation within the Project Service Quote.
In the calculation, we need to consider the cost of the subcontract, the margin over it, and the contingency.
We have one contract with the client. The client is invoiced one amount, including our work and the subcontracts.
We would like to have it consistent for the subsequent Project Budget, invoice planning etc.
Should we enter the subcontract as a Quote Line, one of the rows in Quote Line Details, or as a Write-In product?

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Erica J Ellis 71 on at

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Hi Filip,

You could build the work performed by the subcontractor into the project plan and I think it would achieve most of what you describe with standard functionality. It would look like this:

You have Project Tasks in your Project representing the subcontractor work. Those Project Tasks are assigned to a Project Team Member.

The Project Team Member is associated to the fixed fee Subcontract

Import the Project estimates into the Quote as Quote Line Details. I don't think you need the subcontract work on a separate Quote Line, but you could if you wanted it that way. The Quote Line Details imported for the subcontracted Project Tasks will use the Subcontract's price list to determine the cost.

If you build the Subcontract into the Project, then it will carry through to the budget and invoicing.

Let me know if you have additional questions about that approach.

Erica

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