Clause guide
Subcontracting Clause clause: meaning, risks, and what to negotiate
Controls whether a party can delegate work to subcontractors.
What it means
Subcontracting clauses determine whether work can be outsourced and whether approval is required.
Common risks
- • Work could be delegated to unknown third parties.
- • Quality control could be reduced.
- • Confidential information may be shared with subcontractors.
What to check before signing
- • Is consent required before subcontracting?
- • Are subcontractors bound by confidentiality obligations?
- • Does the original party remain responsible for the work?
Negotiation ideas
- • Require written approval before subcontracting.
- • Ensure subcontractors follow the same obligations.
- • Keep the main party fully responsible for subcontracted work.
Example clause
“Provider may not subcontract its obligations without prior written consent from Client.”
Frequently asked questions
Why do contracts restrict subcontracting?
To maintain quality control and protect confidential information.
Related clauses
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