Overview
Managing subcontractors is one of the most financially consequential parts of running a construction project. Without a structured process, it's easy to lose track of what you've committed to, what you've paid, and what documentation you need to protect yourself from liens.
Structur's Subcontracts feature gives you a full workflow for every subcontractor relationship, from drafting and sending the formal agreement, through vendor approval, payment requests, lien waivers, and final bill payment. Everything is tied to your project budget via cost codes, so your financial picture stays accurate at every stage. And for situations where a dedicated Purchase Order might be needed, Structur provides practical workarounds while a dedicated PO module is in development.
Understanding Subcontracts
What It Does
Structur's Subcontracts feature allows you to:
Create formal subcontract agreements tied directly to a project and cost codes
Send subcontracts to vendors for digital review and approval, including options to approve, decline, or request edits
Track subcontracts through clear status stages: Draft → Pending Approval → Approved → Paid
Manage lien waivers - generate them automatically when billing, send for digital vendor signature, and maintain signed records
Handle vendor payment requests submitted directly through Structur
Create and track bills tied to each subcontract, managing amounts per cost code
Monitor all subcontract commitments in real time against your project budget
Give your Accounts Receivable team access to subcontract and budget data through role-based permissions
When to Use It
Subcontracts are most valuable when you need to:
Formalize a scope-of-work agreement with a subcontractor or vendor before work begins
Track committed costs against your project budget from the moment a subcontract is signed
Require and manage lien waivers as part of your payment process
Give vendors a structured way to request payment and receive funds
Maintain a complete financial trail from estimate to final payment for every subcontracted scope
Step-by-Step Instructions
1. Open Subcontracts
Open an active project in Structur
Click Financial Management in the left navigation
Select Subcontracts
You'll land on the Subcontracts page, where you can view existing subcontracts in List view or Grid view, create new ones, and access Settings.
2. Configure Subcontract Settings
Before creating subcontracts, set your company defaults in Settings to avoid having to configure each one manually.
Click Settings at the top of the Subcontracts page
Configure:
Enable Lien Waivers
Toggle on if your process requires lien waivers from vendors
This setting will apply by default to all new subcontracts
Default Terms and Conditions
Add standard T&C language that should appear automatically in every new subcontract
Save when finished. These defaults apply to all new subcontracts going forward.
3. Create a New Subcontract
Click New Subcontract
Enter:
Subcontract Title
Vendor
Enable or disable Lien Waivers for this specific subcontract
Click Create
You'll be redirected to the subcontract details page.
4. Understand Subcontract Statuses
Subcontracts move through four statuses as they progress:
Draft - Newly created, still being built out
Pending Approval - Sent to the vendor and awaiting their response
Approved - Vendor has signed and accepted the subcontract
Paid - All related bills have been paid in full
5. Fill Out Subcontract Details
On the subcontract details page, complete the following:
Basic Information
Subcontract Number - editable if you use your own numbering system
Title - descriptive name for the scope
Vendor - the subcontractor or supplier
Project Address - auto-filled from the project
Prepared By and Vendor Info
Your company information and the vendor's details are displayed here
6. Add Item Details (Cost Codes)
The Item Details table is where you define the financial scope of the subcontract.
Click Add Items
Choose to add cost codes:
From Budget - pulls from cost codes already in your approved estimate
From Catalog - adds from your company's item catalog
For each item, enter:
Description (optional)
Quantity
Unit Amount
Total Amount is calculated automatically
Important: Adding items from the catalog creates new budget line items not tied to an approved proposal or change order. This can cause job-costing variances and unplanned overages. Always review carefully before using catalog items, and confirm whether additional approval is needed.
7. Complete the Remaining Sections
Below the item table, fill in:
Scope of Work - describe exactly what the subcontractor is responsible for
Terms and Conditions - review and adjust from your defaults if needed
Files - attach any supporting documents
Internal Notes - add context for your team that won't be visible to the vendor
8. Send the Subcontract to the Vendor
When the subcontract is ready:
Click Send to Vendor
Add a custom message in the popup if needed
Click Send
The subcontract status updates to Pending Approval, and the vendor receives an email with a link to review the agreement. The Send button changes to Resend Subcontract for any follow-up sends.
9. Vendor Review and Approval
From their side, the vendor can:
Approve - sign the subcontract, optionally leave feedback, and upload files
Decline - leave feedback explaining why
Request Edits - flag specific changes needed before they'll approve
Copy Link or Download the subcontract
Your team receives a notification for every vendor action. If a subcontract is approved outside the system, use Approve Manually from the top bar to update the status.
10. Handle Vendor Payment Requests
Once a subcontract is approved, vendors can request payment directly through Structur:
The vendor sees a Request Payment button on their side
They enter a title, due date, and requested amount
After submission, your team receives a notification
The payment request appears on the subcontract with the status Payment Requested
11. Create a Bill
Once the subcontract is approved, a Bills section appears on the subcontract page.
Click New Bill
Enter:
Bill title
Due date
Amount per cost code
Save the bill
If lien waivers are enabled on the subcontract, the lien waiver process will begin at this point. If not, the bill is created with Open status.
12. Understand the Lien Waiver Process
When lien waivers are required, they are triggered automatically when you mark a bill Ready for Payment.
What is a lien waiver?
A digital document where the subcontractor confirms they've been paid and waives their right to file a lien against the property for that payment. It protects both you and the property owner from payment disputes and mechanic's liens. Digital lien waivers in Structur are legally binding, with timestamp, IP tracking, and email verification.
The lien waiver workflow:
Mark the bill Ready for Payment - a lien waiver popup opens automatically
Step 1: Select Template - choose from your saved lien waiver templates (standard or custom, including state-specific versions managed in Settings → Lien Waiver Templates)
Step 2: Company Info - confirm company name and address
Step 3: Vendor Info - confirm vendor name and address
Step 4: Payment Info - enter the requested payment amount, confirm the submission date (auto-filled), and review or edit the waiver text
Click Submit Lien Waiver
The bill status moves to Lien Waiver, the lien waiver status shows Submitted, and the vendor receives an email to sign digitally, no Structur login required.
After vendor signing:
Lien waiver status updates to Signed
Bill status returns to Open
You can now mark the bill as Paid
Note: Lien waiver requirements are set at the subcontract level and apply to all bills under that subcontract. Once a lien waiver has been sent, the text cannot be edited, cancel and resend if changes are needed.
13. Pay the Bill
Open the bill
Mark it as Paid
Once all amounts on the subcontract have been billed and all bills are paid, the subcontract status automatically updates to Paid.
14. Using Subcontracts in Place of Purchase Orders
Structur does not currently have a dedicated Purchase Order module, a dedicated PO feature is actively in development. In the meantime:
For subcontractor or vendor commitments → Use Subcontracts
Subcontracts document scope of work, line items, and terms just as a PO would
Create them in advance before work begins or materials are delivered
Best for labor, subcontracted work, or vendor-supplied materials
For direct company purchases → Use Expenses
Log expenses for materials, supplies, or equipment purchased directly by your company
Expenses appear in your project's financial tracking
Best for lumber packages, fixtures, tools, or other direct purchases
Bills are not Purchase Orders. A Bill represents an invoice received from a vendor after a purchase commitment. Bills are for payment processing, not pre-purchase documentation.
15. Giving Your Accounts Receivable Team Access to Subcontracts
Structur does not currently route approved subcontract notifications to specific departments automatically. However, your Accounts Receivable team can be given direct access:
Go to Settings → Permissions
Set up role-based permissions that give Accounts Receivable team members access to:
Project budgets - to see all costs and commitments
Subcontracts - to review approved agreements
Invoices - to process client billing
With the right permissions, Accounts Receivable can review approved subcontracts and the full budget directly in each project, giving them complete visibility without separate notification routing.
Best Practices
Always link subcontract items to budget cost codes - Connecting subcontract line items to the correct cost codes keeps your budget accurate and makes financial reporting meaningful.
Configure lien waiver defaults in Settings before you start - Enabling lien waivers at the settings level means you won't accidentally skip them on a new subcontract.
Enable lien waivers for most subcontractors and material suppliers - Lien protection matters on nearly every trade and vendor relationship. Reserve disabling it for rare, carefully considered exceptions.
Review available budget before sending a subcontract - Confirm there's budget to support the commitment before formalizing it with a vendor.
Use vendor payment requests to streamline billing - Letting vendors submit payment requests through Structur reduces back-and-forth and keeps the payment trail inside the system.
Don't leave bills in Draft or Lien Waiver status - Move bills through the workflow promptly. Stalled bills create gaps in your budget tracking and delay final payment.
Set up AR permissions proactively - Give your finance or AR team access to budgets and subcontracts from the start of the project so they always have the visibility they need.
Common Questions
Q: What does "Require Lien Waivers" mean when I create a subcontract?
A: It means the subcontractor must sign a digital lien waiver before you process payment. Structur generates the waiver automatically when you bill the subcontractor and sends it to them for digital signature. This protects you and the property owner from mechanic's liens and creates a documented payment history. Enable it for most trades and material suppliers.
Q: Can I require lien waivers on some bills but not others under the same subcontract?
A: Not currently. The lien waiver requirement is set at the subcontract level and applies to all bills under that subcontract. Future updates to Structur aim to introduce bill-level lien waiver control.
Q: Are digital lien waivers legally binding?
A: Yes. Structur's digital lien waivers include timestamp, IP tracking, and email verification, making them legally compliant.
Q: What if I need to bypass a lien waiver requirement in an exceptional case?
A: There are a few options. You can cancel the pending lien waiver on the bill (only use this if lien protection genuinely isn't needed), create a new subcontract for the same vendor with lien waivers turned off, or record payment manually outside Structur as a last resort. Bypassing should be done carefully and only in exceptional circumstances, lien waivers exist to protect both parties.
Q: How do I handle Purchase Orders in Structur?
A: A dedicated PO module is in development. For now, use Subcontracts for vendor and subcontractor commitments, and Expenses for direct company purchases like materials or supplies. Do not use Bills as Purchase Orders - Bills represent invoices received after a purchase has been committed.
Q: Can I have approved subcontracts automatically sent to my Accounts Receivable department?
A: Automated notification routing to specific departments isn't available yet. However, you can give your AR team role-based access in Settings → Permissions so they can review approved subcontracts, project budgets, and invoices directly in each project at any time.
Q: What happens to the budget when I create a subcontract?
A: Subcontracts are cost commitments and appear in your project's Total Costs immediately when created. As bills are paid against the subcontract, the Subcontract Balance column decreases and the Bills column increases, keeping the budget picture accurate throughout the payment lifecycle.
Common Mistakes to Avoid
❌ Don't | ✅ Do |
Add items from catalog without checking whether budget exists | Add items from the approved budget to keep cost codes aligned with executed agreements |
Send a subcontract before completing the scope and item details | Finish all sections before sending so the vendor has everything they need to approve |
Skip lien waiver setup for trades where lien risk exists | Enable lien waivers for most subcontractors to protect yourself and the property owner |
Use Bills as Purchase Orders | Use Subcontracts for vendor commitments and Expenses for direct company purchases |
Leave bills sitting in Payment Requested status without action | Review and process payment requests promptly to keep the subcontract moving toward Paid |
Forget to give AR team access to budgets and subcontracts | Set up role-based permissions for AR early so they always have visibility into financial commitments |