When setting up subcontracts in PM Subcontract Header and purchase orders in PM Material Detail, you are given the option to assign a compliance group to each subcontract and/or purchase order. By assigning a compliance group, you assign a group of compliance codes that allow you to track the various compliance requirements associated with that subcontract or purchase order. Compliance can be set up to track the following:

• Subcontractor compliance (such as receipt of certified payroll reports or Certificate of Insurance forms).

• Compliance of the suppliers who provide materials or services to the subcontractors (e.g. whether a supplier has signed a Waiver of Right to Lien).

• Information about important documents (such as receipt of a Notice of Right to Lien from a supplier, or the date you mailed a deficiency letter to a sub, or the date and amount of a lien).

Although you can assign compliance groups here in PM, compliance verification/tracking actually occurs in the destination module (SL or PO). Once you interface a subcontract or purchase order to accounting, it can be edited and/or invoiced for payment in AP. If the Verify flag is set to Y and compliance is not met, a warning is displayed. Because the compliance tracking needs of each business are so unique, the compliance-tracking feature provides a great deal of flexibility in the types of compliance information you can track on your suppliers and subcontractors (and their suppliers), and how you set up and maintain that information. For more in-depth information about compliance codes and compliance tracking, please refer to Compliance Tracking for the related module in Related Topics below.