Work Orders (WO)
A Work Order is the formal contract issued to a subcontractor authorizing them to execute specified work items. It is created from a selected vendor offer and must be approved before work can begin.
Creating a Work Order
Work Orders are generated from the selected vendor offer in the RFP process. When you choose the best subcontractor proposal, the system automatically carries over all relevant data into the WO:
- Select the Best Vendor Offer From the RFP evaluation, choose the most suitable subcontractor proposal based on price, capability, timeline, and compliance criteria.
- Generate Work Order Click Create Work Order from the selected offer. The system auto-populates the WO with subcontractor details, work item specifications, quantities, unit rates, and proposed terms from the offer.
- Review and Finalize Verify the auto-populated data. Add or modify contract terms, milestones, performance requirements, liquidated damages clauses, and any special conditions.
- Provision Materials (if applicable) If the contract requires the contractor to supply materials to the subcontractor, specify the materials and quantities to be provisioned as part of the Work Order.
- Submit for Approval Submit the WO for approval through the configured workflow. The WO is reviewed by designated approvers who verify scope, pricing, budget compliance, and contract terms.
The subcontractor can commence work only after the Work Order has been approved. Allowing work to start before approval exposes the organization to unauthorized commitments and potential disputes.
Approval Workflow
Work Orders follow the organization's configured approval workflow, which may include multiple levels based on the WO value, work type, or project:
| Status | Description |
|---|---|
| Draft | WO is being prepared; subcontractor details and terms are being finalized |
| Pending Approval | WO has been submitted and is awaiting approval from designated authorities |
| Approved | WO has been approved; subcontractor is authorized to begin work |
| In Progress | Work has commenced; measurements are being recorded |
| Completed | All work items have been executed and measured |
| Closed | WO is finalized; all measurements approved and payments processed |
Material Provisioning in Work Orders
When the contractor is responsible for supplying materials to the subcontractor, the Work Order includes a material provisioning section. This is a critical control mechanism that governs material supply to subcontractors.
How Material Provisioning Works
- Define Materials in the WO During Work Order creation, specify the materials and quantities that will be supplied to the subcontractor. This creates a material budget within the Work Order.
- Issue Material Against the WO As the subcontractor needs material, create material issues in the Stock Management module against the Work Order. Only provisioned materials and quantities are available for issue.
- Track Consumption The system tracks material provisioned versus material actually issued, providing visibility into consumption patterns and potential waste.
Only materials that have been provisioned in the Work Order can be issued to the subcontractor. This prevents unauthorized material supply and ensures that material costs are accurately allocated to the correct work scope.
Work Order Key Fields
| Field | Required | Description |
|---|---|---|
| Subcontractor | Required | The registered vendor/subcontractor selected from the offer |
| Work Items | Required | The scope of work with quantities and unit rates |
| Total WO Value | Required | Calculated total value of all work items in the order |
| Start Date | Optional | Expected commencement date for the subcontracted work |
| Completion Date | Optional | Target completion date for all work items |
| Payment Terms | Optional | Payment schedule, retention percentage, milestone-based payments |
| Material Provisioning | Optional | Materials to be supplied by the contractor to the subcontractor |
| Terms & Conditions | Optional | Contract clauses, performance requirements, LD provisions, warranty terms |
Full Traceability
Every Work Order maintains a complete audit trail linking it through the entire subcontractor lifecycle:
- Backward Trace — WO links to the vendor offer, RFP, Work Requisition, and budget
- Forward Trace — WO links to Measurement Sheets, vendor bills, and payments
- Material Trace — WO links to material provisions, issues, and returns tracked in SCM
- Budget Linkage — WO value is tracked against the Work Item budget for variance analysis
If the scope of work changes after the WO is approved (additional quantities, new work items, or rate revisions), create a Work Order Amendment. Amendments follow the same approval workflow and maintain a clear revision history linked to the original WO.