Am I liable for the subcontractor's mistakes?

Yes. You are liable to the client for the entire performance, including the part carried out by the subcontractor. That is why the subcontractor agreement must flow the same standards.

What is a back-to-back contract?

A back-to-back contract mirrors the key obligations from the main contract (SLA, penalties, confidentiality, IP) and passes them to the subcontractor, ensuring consistency throughout the chain.

How to structure payments to the subcontractor?

We recommend tying payments to the subcontractor to receipt of payment from the client (pay-when-paid clause). However, ensure this clause is not invalid as an abuse of market position.

Commercial

Subcontractor agreement

Subcontractor agreement — a secure supply chain

Flow obligations from the main contract to the subcontractor correctly and safely.

Start free Features

GDPR compliant · EU-hosted

45 % of supply chain disputes arise from failing to flow key terms to the subcontractor

Companies with back-to-back subcontractor agreements meet SLAs 30 % better

Average loss from a poor-quality subcontractor without a contract is €18,000

A subcontractor agreement mirrors the obligations from the main contract (back-to-back), including SLA, confidentiality, IP and liability. AI generates the agreement aligned with the main contract.

Legal context

A subcontractor agreement is an unnamed commercial contract. The main contractor is liable to the client for the subcontractor's performance. Client consent to subcontracting is required if the main contract mandates it.

Commercial Code § 269(2) — unnamed contract; main contractor remains liable to client for subcontractor's performance

Legal basis & glossary

When to use a Subcontractor agreement

When hiring a subcontractor for a portion of work on a client project
When sourcing specialised capacity for a specific part of a contract
When you need to flow SLA obligations from the main contract to a partner
For regulated environments (construction, IT, healthcare) where subcontracting is controlled

What you get

Back-to-back conditions
Confidentiality and IP flow-down
Chain liability
Payment terms

How it works

From idea to signature

Back-to-back conditions

Confidentiality and IP flow-down

Chain liability

FAQ

Frequently asked questions about Subcontractor agreement

It depends on the main contract. Most project contracts require written client consent before engaging a subcontractor. Always check the main contract.