Very few companies delivery everything using internal resources so you will often submit a proposal working in conjunction with major sub-contractors who quote for and provide a mixture of labor, services and other materials.  The process for getting quotations from suppliers is not included in the current phase of this application, however you should input the returned subcontractor costs in the "Other direct costs" tab of your estimate. The screen shot below indicates a typical subcontractor or other direct costs tab inside an estimate.

Subcontractor costs for labor and miscellaneous services are maintained in the other direct cost tab, while materials which are subcontracted out to a supplier to perform some process on parts provided to that company are managed in the material costs tab. Subcontracted materials are marked as both purchased parts and as subcontracted parts.

1. The proposal and BOE-WBS are displayed at the top
2. As is the design to cost target and total estimated cost so far for this BOE-WBS (across all tabs) and the sum of total other direct costs on this tab. Hide the summary view to show more rows in the other direct cost table by clicking the link
3. Each subcontract cost is marked with a checkbox in the subcontract column to distinguish for other direct costs. Click here to learn how to add columns if the desired column is not visible
4. Enter a description and/or optionally select a product or service which most closely represents what the subcontractor is providing to you
5. Enter the quantity and unit cost.  Total cost is calculated either as quantity x unit cost (in net present value) or based on the selected formula and parameter values within that formula expression
6. Select or search for the supplier who quoted for this work
7. End the start and end dates for the subcontracted services plus a distribution curve which is  assumed as LINEAR unless specified otherwise
8. Optionally assign this cost to a subordinate WBS element below the BOE-WBS. Also select a cost element for this other cost which is needed for example to calculate indirect costs based on the correct overhead and G&A rate parameters.

Subcontractor costs will be visible in the subcontractor costs report.