Use of subcontracting

Verified 27 June 2026 - Entreprendre Service Public / (Prime Minister)

Subcontracting is an operation by which a company (called client) assigned to another company (called subcontractor) the task of carrying out for it part of the acts of production and/or services for which it remains responsible. Subcontracting adapts to all sectors of activity. It can be very useful for the development of the activity.

Subcontracting allows a company (client) to have another company perform a service that it is not not able to accomplish itself for example, due to a lack of time, resources or expertise.

Nevertheless, delegating part of its production or a service also involves entrust part of your image to a third party.

This practice has benefits and risks for the client.

Benefits

  • Strategic exploitation of resources : time and energy are focused on the high value-added missions that the company controls. The tasks in which it performs less well are entrusted to the subcontractor, whose core business it is.
  • Access to expertise : the client using a subcontractor has access to a skill, know-how or technology that it does not possess or whose capacity is limited. Subcontracting is a means of filling a need for specialization and adapting to technical market developments (e.g. digitalization).
  • Responsiveness to a temporary increase in activity : in the event of a one-off or seasonal increase in demand, subcontracting can make it possible to rapidly increase human and organizational resources rather than refusing a new customer.
  • Reduction of personnel costs : using the services of a subcontractor on an ad hoc basis helps to limit costs.

Risks

  • Dependence on subcontractor
  • Lack of coordination with the subcontractor
  • No sharing of know-how
  • Lack of subcontractor involvement to improve the quality of the company's product or service

Indeed, subcontracting can have a negative impact on the quality of the product or service delivered to the customer. To remedy this, the company must establish a quality control and develop a effective communication with his partner.

The drafting of a subcontracting contract is not mandatory, but is essential for ensuring legal certainty optimal.

The subcontract shall include the following entries :

  • Subject matter of the contract, i.e. the details of the task entrusted to the subcontractor
  • Price of the service
  • Indexing clause or renegotiation clause (in case of changes in economic conditions that would compromise the balance of the contract)
  • Payment terms and/or late payment penalties
  • Terms and conditions of contract amendment
  • Delivery (place of delivery, deadlines, transport and packaging)
  • Penalty for failure to meet deadlines (e.g. price reduction)
  • Control and receipt of services
  • Guarantees granted to the subcontractor
  • Confidentiality of certain information transmitted to the processor
  • Intellectual property when the service is protected by copyright
  • Clause on the concealed work to ensure that the subcontractor does not use the work of undeclared persons
  • Date of conclusion, effective date of the contract
  • Competent court and applicable law, in case of possible dispute

Like a contract for the provision of services, the subcontract must lay down the obligations of each party and in particular those of the subcontractor.

Subcontractor

The subcontractor undertakes to carry out the works entrusted to him by respecting the calendar of execution of the tasks.

It must also advisor and inform the company of any difficulties encountered in the context of the works.

The contract must determine whether the subcontractor has an obligation of means or an obligation of result.

If it is a obligation of means, the subcontractor is not obliged to achieve a specified result. On the other hand, he undertakes to use all the means at his disposal to execute the contract.

If it is a obligation of result, the subcontractor undertakes to achieve the result precise, concrete and determined to the contract. The stringency of the obligation is really binding on the subcontractor, but it is justified only if the performance of the obligation is possible. The expected result must be sufficiently certain. For example, the mechanic has an obligation to repair a car that has entrusted him.

Finally, if a confidentiality clause stipulates this, the subcontractor may be obliged not to disclose information specific to your company.

Ordering party

Obligation to pay subcontractor

The client commits itself first to pay subcontractor in accordance with the established contract and in compliance with the payment conditions set out therein.

It also has a obligation to cooperate : it must make every effort to ensure that the subcontractor can carry out the tasks entrusted to it under good conditions.

Warning  

If the client does not pay the subcontractor within 1 month of being served with formal notice, the latter may act directly against the contracting authority (the customer) to obtain the amounts that are due under the subcontract.

Duty of vigilance and financial solidarity

In the context of the fight against concealed work, the principal has a duty of care with respect to the subcontractor. The subcontractor must be asked to provide the following documents (which prove the absence of concealed work):

  • Urssaf vigilance certificate: for any contract greater than or equal to €5,000, the vigilance certificate proves that the subcontractor is up to date with its declarations and payments of social contributions. For more information, refer to the fact sheet  « How to obtain a vigilance certificate? ».
  • Extract Kbis or proof of registration in RNE: titleContent .
  • Quotation, advertising document or professional correspondence, provided that the name or company name, complete address and registration number of the subcontractor are mentioned.

If the client fails to comply with his duty of care (for example by forgetting to request these various documents), and the subcontractor is sentenced for concealed work, the client is jointly and severally liable with the subcontractor for the payment of various sums (e.g. taxes, taxes and compulsory contributions, remuneration, etc.).

From 27 June 2026, the fight against fraud will be stepped up. The client (or contracting authority) has a extended duty of care. That means he has to check periodically until the end of the performance of the subcontract, the subcontractor complies with its obligations. To do this, the client checks various documents (extracts of registration at RNE: titleContent and/or RCS: titleContent, attestation of vigilance, etc.). The provisions on periodic verification will apply only as from the issuance of an order in council.

In the case of subcontracting chains or so-called « cascading » subcontracting, the duty of care applies to the first direct subcontractor and to all the subcontractors involved.

The contracting authority must therefore check the validity of the documents (extracts of registration at RNE: titleContent and/or RCS: titleContent, attestation of vigilance, etc) for all subcontractors since the start of their contract and throughout their contract. The provisions on the chain of subcontracting will apply only from the publication of a decree.

Liability in case of fault committed by the subcontractor

The client is liable to the client (contracting authority) misconduct by the subcontractor during the implementation of the works entrusted to it.

Example :

A company is solicited by a client to build a house. The company uses a subcontractor for the supply and installation of an electrical network. The latter misperforms its mission, the electrical network is defective and damages the building. In this situation, the client is responsible for the damage.

In other words, the company that is the principal must make good a mistake that it did not commit. This repair may take the form of damages and interest paid to the customer.

Therefore, the client can turn against the subcontractor to obtain reimbursement of the costs incurred.

Liability for illegal work by a subcontractor

When the subcontractor is convicted of illegal work, the principal is jointly and severally liable with the subcontractor for the payment of taxes, contributions, surcharges, penalties, etc. For information on illegal work situations, refer to the fact sheet on the illegal work.

From 27 June 2026, the fight against fraud will be stepped up. In the case of subcontracting chains or so-called « cascading » subcontractingwhen the subcontractor of the subcontractor (called second-tier subcontractor) is convicted of illegal work, the client may be required to pay taxes, contributions, of the second-tier subcontractor. The provisions on the chain of subcontracting will apply only from the publication of a decree. For more information, refer to the fact sheet on the illegal work.

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