Subcontracting Clause
Governs whether a party may delegate performance to subcontractors and who remains responsible for the result.
What it is
A subcontracting clause sets whether and how a contractor may use third parties to perform its obligations, any approval requirement, and the rule that the main contractor stays fully liable for subcontractors' acts. It also addresses flow-down of key terms such as confidentiality and data protection.
Why it matters
Delegation can dilute quality, control and confidentiality. The clause keeps the main contractor accountable, ensures key obligations flow down to subcontractors, and prevents an unknown third party performing without the customer's knowledge.
How to apply it
- State whether subcontracting needs prior written approval or notice.
- Make the main contractor fully liable for its subcontractors' acts and omissions.
- Flow down confidentiality, data-protection and IP terms to every subcontractor.
- Reserve a right to object to or replace an unsuitable subcontractor.
Negotiation tips
- • Customers should require approval rights and full flow-down of key obligations.
- • Contractors should seek pre-approval of a named subcontractor list to avoid delays.
Common pitfalls
- • Allowing subcontracting without flowing down confidentiality and GDPR terms.
- • Letting the main contractor escape liability for subcontractor failures.
Legal references
- BW 6:76 Liability for auxiliary persons (hulppersonen) Dutch law
- GDPR Art. 28 GDPR: sub-processor obligations EU law
Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.
Frequently asked questions
Common questions about this clause.