Sub-Contract & Sales Contract

Establishes a Sales Contract in IFS Cloud that captures contract scope, deliverables, default financial terms (retentions, markups, payment terms, currency) and progresses through the tender-to-award lifecycle. The contract can be developed with or without a project, but a project is required once applications for payment are raised, and it supports revision control with baselines and audit trailing.

Configures how contract revenue is billed over time in IFS Cloud, using milestones and progress-based methods against contract items. Milestones define completion steps, progress percentage, lead time and sequence, and can drive staged billing; progress billing begins once the contract is activated and work initiated.

Manages procurement of contracted work from suppliers in IFS Cloud, where a sub contract sits above a project and can span one or more projects. It records invitations to tender, tender responses and changes, with revision control, baselines and contract-level defaults, progressing from Planned through Released, Submitted, Awarded, Active to Closed.

Captures, analyzes, justifies and approves changes (variation orders) to projects, sales contracts and sub contracts in IFS Cloud via the Contract Change Order (CCO). The CCO is the justification for a change while implementation happens on the affected project or contract, with optional approval routing driven by change type or financial value and B2B visibility to suppliers.

Handles the periodic application for money from customers based on work completed in IFS Cloud, valuing work against contract items up to a cutoff date. Applications flow through Planned, Approved, Submitted, Certified and Paid statuses with cumulative valuation, financial postings on submission/certification, and a Sales Contract Ledger tracking amounts paid and withheld.

Turns a won tender into a live, governed job in IFS Cloud. The executed contract terms - form, main option, payment mechanism, retention, liquidated damages, bonds and warranties - are recorded, the Project and its financial structure are created from the winning Sales Quotation, and the commercial and delivery team is appointed. Setup completes when the tender cost converts into an approved baseline budget and revenue plan so cost capture can start on day one.

Covers the full commercial cycle for a works subcontractor: prequalification and supplier registration, CIS verification with HMRC, subcontract award under NEC4 or JCT, and the monthly interim payment application, valuation, payment notice and pay less notice regime required by the UK Construction Act. In IFS Cloud the subcontractor is a Supplier, the subcontract is carried as a supplier agreement and purchase order against the project activity, and the certified value posts as project cost. Construction-specific artefacts such as the payment application, payment notice and pay less notice have no standard IFS Cloud object and require a design decision.

Manages the full lifecycle of contract variations and change orders on a construction project in IFS Cloud, from origination of a client instruction or early warning through entitlement assessment, pricing, approval and incorporation into the project baseline. The commercial change record is held against the IFS Cloud Project and Project Activity structure so that an approved variation adjusts budget, revenue and forecast in one controlled step. The process supports both the NEC4 compensation event regime and the JCT variation instruction regime.

Brings the contract to a commercial and financial conclusion - agreeing the final account with the client, settling subcontract final accounts, clearing open commitments, releasing the final retention moiety and closing the project in IFS Cloud. Runs on the Project and Sub Project structure with the settlement evidence held as approved document revisions. Downstream of variations (P6.C41), claims (P5.C45) and cost value reconciliation (P4.C43), all of which must be resolved into the single agreed final figure.

IFS Cloud handles periodic payment against work completed through Application for Payment, where a valuation is made against the contract items up to a cutoff date using Progress (percentage complete), Quantity Complete, Cost Value, Cost Plus (actual cost factored by a mark-up) or Sales Value. The application moves through Planned, Approved, Submitted, Certified, Partially or Fully Paid and Canceled, is cumulative across applications, creates financial postings on submission and again on certification, and is retained in a Sales Contract Ledger tracking payment requests, amounts paid and amounts withheld. Statuses also feed the IFS Cash Flow Analysis with a reliability-graded cash flow status, while transaction-based billing runs through project invoicing.

Manages commercial change and interim cash recovery on HVAC installation contracts. Covers instruction and pricing of variations, cumulative valuation of work done to a cut-off date, internal approval and submission of the application for payment, receipt and reconciliation of the client certificate, and treatment of retention, discount and deductions through to invoice and cash.

Manages the third-party civils and build partners that deliver most of the physical rollout - onboarding, capacity call-off, work allocation, quality and safety compliance, measurement and payment. In IFS Cloud partners are Suppliers under Supplier Agreements, work is issued as subcontract Purchase Orders or assigned Work Orders, and valuation flows from field-measured quantities to supplier invoice. IFS positions contractor management as the lever for margin and consistent delivery quality when the workforce is a mix of employees and third parties.