Subcontracting is essential in the construction industry. However, poor contract management can expose the main contractor to major financial, legal, and operational risks. Here are the main pitfalls to avoid and best practices to adopt.
1. The importance of the subcontractor's declaration and acceptance
Under French law, the project owner must accept the subcontractor and agree to its payment terms (Law No. 75-1334 of December 31, 1975). Omitting this step exposes the main contractor to joint and several liability towards the subcontractor's unpaid employees or suppliers, as well as contractual sanctions and even the nullity of the contract.
"When it comes to subcontracting, there is no room for improvisation: every stage of the contract must be mastered to secure the entire operation."
2. Vigilance on administrative and social compliance
The contracting company must ensure that the subcontractor's legal status is up to date (Kbis, tax and social security certificates, BTP card, etc.). It is recommended that these documents be updated at each major deadline for the project to avoid liability in the event of undeclared work or illegal employment.
Legal security on construction sites requires rigorous subcontracting contracts.
3. Sensitive clauses to watch out for
Certain contractual clauses deserve special attention: execution time, late penalties, guarantees, prices, payment terms. Vague or unbalanced drafting can lead to significant litigation or additional costs. If in doubt, a legal review is required.
4. Securing payments: the requirement for a guarantee
The subcontractor must obtain a payment guarantee with a bank or insurer to guarantee payment of services. The main company risks having to pay twice if this formality is not respected: first to the subcontractor, then to the guarantor.
5. Anticipate disputes and resolution methods
Including a mediation or arbitration clause allows for faster resolution of disputes. In the event of a dispute, the competent jurisdiction must be clearly designated to avoid conflicts of jurisdiction and limit delays.
Subcontracting contracts in the construction industry require rigor and foresight. Support from a legal professional is strongly recommended to avoid costly mistakes and ensure long-term security for your operations.
