Material Commitments

Learn how to create and manage long-term material commitments with vendors

Overview

A Material Commitment is a long-term agreement with a vendor that locks in pricing and quantities for specific materials. Commitments help you:

• Secure pricing for large or ongoing projects
• Track how much you’ve ordered against committed amounts
• Monitor remaining quantities and spend
• Ensure orders are placed at negotiated rates

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When to Use Commitments

Use Commitments When…	Use Regular Orders When…
Long-term material needs	One-time purchases
Negotiated pricing	Standard catalog pricing
Large volume purchases	Small quantities
Need to track against budget	No budget tracking needed
Multiple orders over time	Single order fulfillment

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Understanding Commitment Structure

A Material Commitment tracks:

Field	Description
Vendor	The supplier providing the materials
Materials	List of materials with committed quantities and prices
Committed Quantity	Total quantity agreed upon
Committed Value	Total dollar amount of the commitment
Ordered Quantity	How much has been ordered so far
Remaining Quantity	What’s left to order

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Step 1: Create a Commitment

1. Navigate to Commitments

   Go to Commitments from the main navigation.

2. Click New Commitment

   Click + New Commitment and select Material Commitment.

3. Select Project

   Choose the project this commitment is for.

4. Select Vendor

   Choose the vendor you have the agreement with.

5. Enter Commitment Details

   Add a name, reference number, and any notes about the agreement.

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Step 2: Add Committed Materials

For each material in the agreement:

1. Click Add Material

   Click Add Material to add a line item.

2. Select Material

   Choose from your Material Database or add a new description.

3. Enter Committed Quantity

   The total quantity covered by this commitment.

4. Enter Unit Price

   The negotiated price per unit.

5. Add Cost Code

   Assign the appropriate cost code for tracking.

Repeat for all materials in the agreement.

Upload the vendor’s quote or contract as an attachment for reference.

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Step 3: Confirm the Commitment

Once all materials are added:

1. Review Totals

   Verify the total committed quantity and value.

2. Attach Documents

   Upload contracts, quotes, or other supporting documents.

3. Confirm

   Click Confirm Commitment to activate it.

The commitment moves from Drafted to Confirmed status.

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Commitment States

State	Description
Drafted	Being created, not yet active
Confirmed	Active and ready for orders
Partially Delivered	Some orders have been delivered
Delivered	All committed materials ordered and received
Cancelled	Commitment terminated

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Ordering from a Commitment

When creating a purchase order, you can link it to a commitment:

1. Create New Order

   Start a new purchase order for the vendor.

2. Select Commitment

   Choose the commitment to order from.

3. Add Materials from Commitment

   Click Add from Commitment to select materials.

4. Enter Order Quantities

   Specify how much you’re ordering. Pricing auto-fills from the commitment.

5. Complete Order

   Finish and send the order as normal.

The commitment automatically tracks the ordered quantities.

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Tracking Commitment Progress

Commitment Dashboard

View all commitments with:

• Total Committed – Full value of all commitments
• Total Ordered – How much has been ordered
• Remaining – What’s left to order

Individual Commitment View

Each commitment shows:

• Material-level progress – Ordered vs. committed for each item
• Visual progress bars – Quick view of fulfillment status
• Linked orders – All purchase orders tied to this commitment
• Remaining quantities – What can still be ordered

Color Coding

• 🟢 Green – On track, within committed amounts
• 🟡 Yellow – Approaching committed limits
• 🔴 Red – Exceeded committed quantities (over-ordered)

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Handling Over-Orders

If you order more than the committed quantity:

1. SubBase flags the overage
2. You can still place the order if needed
3. The remaining quantity shows as negative
4. Consider negotiating additional commitment with vendor

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Modifying Commitments

Adding Materials

If the vendor agreement expands:

1. Open the commitment
2. Click Add Material
3. Enter the new material and terms
4. Save changes

Adjusting Quantities

To modify committed amounts:

1. Open the commitment
2. Edit the material line
3. Update the committed quantity
4. Note the reason for change

Cancelling a Commitment

If an agreement is terminated:

1. Open the commitment
2. Click Cancel Commitment
3. Provide a reason
4. The commitment is archived

Cancelling doesn’t affect orders already placed. Those continue through normal fulfillment.

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Commitment Reports

Generate reports on commitment status:

• Commitment Summary – Overview of all active commitments
• Utilization Report – How much of each commitment has been used
• Remaining Spend – Uncommitted amounts by vendor
• Expiring Commitments – Agreements approaching end dates

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Best Practices

Document Everything

Attach vendor contracts and quotes to commitments.

Monitor Regularly

Check commitment progress weekly to avoid surprises.

Order from Commitments

Always link orders to commitments to track accurately.

Plan Ahead

Negotiate new commitments before existing ones are exhausted.

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Related Guides

Creating Purchase Orders

Learn how to create orders linked to commitments.

Concrete Commitments

Manage specialized concrete pour commitments.

Managing Vendors

Set up vendor relationships for commitments.