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S.1 Business Scenario – Internal Subcontract

【Business Scenario】
1. The member company (My Signed Company A) of the group company undertakes Project A, which is contracted by the client company (Demo Owner). The project involves 1000 column piles with a construction cost of 10 million. In order to meet the business needs, it is internally subcontracted to another member company (My Operating Company NO.1) of the group company for a total subcontract price of 9.5 million, and the difference of 500,000 management fee is attributed to the profit of the member company (My Signed Company A).
2. The member company (My Operating Company NO.1) of the group company actually operates the sub-Project A.

【S1 Business Scenario-Internal Subcontract】Operating Manual
Part A. 【Business Undertaking Management】The member company (My Signed Company A) signs a “Income Contract” with the client (Demo Owner) for Project A. Other member company (My Operating Company NO.1) signs an “Disburse Contract” with the member company (My Signed Company A) as a supplier(subcontractor).
【Demo Owner】–【My Signed Company A】–【My Operating Company NO.1】

Step 1. Click “Basic Data” on the top navigation, click “Client” on the left navigation to enter the client list page, and click “(+Add)” to register the client company (Demo Owner) in the client company information.

Step 2. Register the member company (My Operating Company NO.1) in the “Basic information-Partner-Subcontractor” ,as the subcontracting unit of the client company (Demo Owner), and sign a subcontract contract with (My Signed Company A).

Step 3. Register the member company (My Signed Company A) in the “Basic information-Partner-Signed Company“ as the signing and undertaking unit of the client company (Demo Owner)’s Project A.

Step 4. Click “Project” on the top navigation, and click “Project Information” on the left navigation to register the Project A. After filling in the information, submit for approval.
(For approval process-related operations, please refer to step 5-step 7 in the “2.1 Project Management-Project Information” operating guide, the same below)

Step 5: Click on “Contract” in the top navigation, and then click on “Contract Signing” in the left-hand navigation of the “Income Contract” module to register “Construction contract”. Select “Construction Contract” as the contract type and submit for approval after filling in all necessary information.

Step 6: Click on “Contract” in the top navigation, and then click on “Contract Signing” in the left-hand navigation of the “Disburse Contract” module to register the subcontract agreement. Select “Professional Subcontract” as the contract type.

Step 7: Fill in the information and data based on the actual project situation, and register all key economic indicators in “Subcontract details”. The registered data can be used for output value statistics and subcontract settlement in the subcontract management module.

Part B. [Business Operation Management] My Signed Company A, a member of the group company, signs an “Income Contract” with My Operating Company NO.1 for the sub-project A. My Operating Company NO.1 then operates the project normally (managing cost, Labour, material,Equipment, and “Disburse Contract”).

Step 1: Register “My Signed Company A” as a customer unit in the “Basic information” section, which will be the contracting unit for “My Operating Company NO.1” in the actual operation of sub-project A.

Step 2: Register My Operating Company NO.1 as the signing contractor for sub-project A in the basic information section under “Signed Company”, which will subcontract to “My Signed Company A.” Other suppliers and subcontractors should be registered normally.

Step 3. Click “Project” in the top navigation, then click “Project Information” in the left navigation panel to register the subcontracted project (sub-Project A). After completing the form, submit it for approval.

Step 4. Click “Contract” in the top navigation, and in the left navigation panel of the “Contract” module, find the income contract “Income Contract”. Click “Contract Signing” and select the subcontracted project (sub-Project A) in the project selection area on the right to register the acceptance agreement after subcontracting. Select “Construction Contract” as the contract type. After completing the form, click “Submit” for approval.


Notes for follow-up business:

The subcontracted project (sub-Project A) will be operated by a member of the group company (My Operating Company NO.1);
When requesting payment from the client, reporting progress, process settlement, and handling rewards and punishments, My Signed Company A, a member of the group company, will still be responsible and register the transactions under Project A. When the client settles payment, My Operating Company NO.1’s team will handle it under the subcontracted project (sub-Project A).

THE END