👷 Construction ERP · Subcontractor management

Pay subcontractors for the work done, and not a rupee more

Issue work orders, record measurements at site and certify RA bills with retention, advance recovery, debit notes and TDS worked out automatically. Expired licences or insurance can hold a payment, and every subcontractor ends the job with a scorecard.

RA bill certification—
Net payable₹0
The subcontractor journey

Seven stops from first check to final payment

Every subcontractor rides the same line. The marker moves stop by stop; hover a station to see what happens there.

  1. PrequalifyLicences, insurance, past work
  2. QuoteRates against BOQ items
  3. Work orderScope, rates and terms
  4. MobiliseAdvance paid, secured
  5. MeasureWork recorded in the MB
  6. RA billsCertified with deductions
  7. Close outFinal bill and retention release
Work order types

Three ways to contract a trade

Pick a type to see who supplies what and how much risk sits with the subcontractor. The risk split is illustrative.

Material
Labour
Plant
Risk with subcontractor

Typical trades:

RA bill calculator

Work out a subcontractor's RA bill

Enter the work order and this bill's progress. Retention, advance recovery, debit notes, TDS and GST are applied in order. Use your own contract terms.

Net payable this bill—
Retention held to date—
Advance still to recover—
Net as share of gross—

TDS rates shown are the long-standing contractor rates with a valid PAN. Check the current tax rules and the GST rate that applies to your contract.

Automate my RA bills
Compliance wall

Documents checked before money goes out

Every subcontractor's licences, registrations and insurance in one view. Turn on payment holds to see who can't be paid until they renew. Example data.

SubcontractorLabour licencePFESIInsuranceSafety inductionGSTPayment
Mehta ShutteringValidValidValidDue soonValidValidPayable
Sai Masonry LabourValidExpiredValidValidDue soonValidPayable
Volt ElectricalsValidValidValidValidValidValidPayable
AquaFlow PlumbingDue soonValidValidExpiredValidValidPayable
  • Valid
  • Expires within 30 days
  • Expired
Mehta Shuttering—
Volt Electricals—
Scorecards

Know who to hire again

Each finished job scores the subcontractor on quality, safety, schedule, cost discipline and paperwork. Compare two side by side. Example scores out of 100.

Retention

Held every bill, released in two parts

Retention builds up with each RA bill. Half is released at completion and the rest when the defects liability period ends. Example values for one work order.

₹40kBill 1
₹85kBill 2
₹130kBill 3
₹170kBill 4
₹215kBill 5
₹250kBill 6
₹125kDone
₹125k+4 m
₹125k+8 m
₹0DLP end

Retention held after each bill, in thousands of rupees

Measure once, bill both ways

One measurement, two bills

The quantity your engineer certifies feeds the client's RA bill and the subcontractor's bill, so margins are clear on every item. Example: 186 m³ of slab concrete.

Client RA bill₹16.85 L186 m³ × ₹9,061Progress billing
Measurement bookSlab, 3rd floor · 186 m³ certified
Subcontractor bill (labour)₹2.51 L186 m³ × ₹1,350Rate analysis
How it works

From onboarding to retention release

Six steps for every subcontractor.

  1. Step 1OnboardAdd subcontractors with documents and bank details.
  2. Step 2Issue work ordersScope, rates, retention and advance terms.
  3. Step 3Measure at siteRecord work done in the digital MB.
  4. Step 4Certify billsEngineer and QS approve the RA bill.
  5. Step 5Pay and deductDeductions applied and TDS booked automatically.
  6. Step 6Close outFinal bill, scorecard and retention release.
What it changes

Results on site and in accounts

Hover a card.

Faster certification

RA bills checked and approved in days, not weeks.

No overpayment

Every deduction applied, every bill, automatically.

Compliance first

Expired documents flagged before money goes out.

Better subcontractors

Scorecards show who to hire again.

Who it's for

Contractors who rely on subcontractors

If trades and labour contractors do most of your work, this module is for you.

  • Building and housing contractors
  • Road and infrastructure contractors
  • EPC and industrial contractors
  • Real estate developers
  • Interior and fit-out companies
  • Solar and MEP contractors
Construction ERP

Other modules in the suite

One integrated system.

FAQ

Subcontractor management questions

Answers for project, QS and finance teams.

What is subcontractor management in construction?

It's how a main contractor selects, contracts, measures, bills and pays the specialist firms and labour contractors who do parts of the work. Done well, every subcontractor is paid for certified work only, with retention, advances and back-charges handled correctly.

What is an RA bill?

A running account (RA) bill is an interim bill for work done to date, less what was billed before. Subcontractors submit RA bills regularly, often monthly, and the main contractor certifies the measured work before paying.

What deductions are made from a subcontractor's RA bill?

Common deductions are retention, recovery of mobilisation or material advances, debit notes for material over-use or back-charges, penalties under the contract, and TDS. GST is added if the subcontractor is registered. The exact list depends on the contract.

How does retention money work?

A percentage of each bill, often 5–10%, is held back as security for defects. It is commonly released in two parts: half at completion and half when the defects liability period ends. Your contract sets the actual terms.

How is a mobilisation advance recovered?

The advance, often around 10% of the work order value, is recovered in instalments from each RA bill, for example 10% of every bill until the full amount is back.

What TDS applies to subcontractor payments?

In India, TDS on payments to contractors has long been 1% for individuals and HUFs and 2% for others with a valid PAN, with higher rates where no PAN is given. Tax provisions change, so check the current rules for your case.

Can expired licences or insurance block a payment?

Yes, if you choose. The system tracks licence, PF, ESI, insurance and safety documents and can hold a payment until an expired document is renewed.

Can subcontractors submit bills and documents online?

Yes. A subcontractor portal or app lets them upload documents, see work orders and submit RA bills for certification.

How long does it take to set up?

Usually 6 to 10 weeks, depending on the number of subcontractors, sites and integrations. This is an estimate.

Get In Touch

Ready to pay subcontractors right, every bill?

Tell us how many subcontractors you work with and how you certify their bills today. We reply within 4 business hours and can demo with your own data.

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