The legal framework
Subcontracting in construction is governed by the act of 31 December 1975 and its implementing decrees. It protects subcontractors, structurally weaker than main contractors, notably by guaranteeing them direct payment by the client.
The act defines subcontracting as the operation by which a contractor entrusts to another person, under a subcontract and on its own responsibility, the execution of all or part of the contract concluded with the client.
Acceptance and approval: prior obligations
Every subcontractor must be declared and approved by the client before starting work. The declaration can be made when the offer is submitted or during the contract.
| Acceptance | The client recognises that the subcontractor will work on the site in that capacity. |
|---|---|
| Approval of the payment terms | The client accepts the subcontractor's payment terms, which conditions its right to direct action. |
A subcontractor neither declared nor approved does not benefit from the protections of the act. On public contracts, a firm using undeclared subcontractors is exposed to contractual sanctions up to termination.
Direct action: the key protection
Direct action allows the subcontractor, where the main contractor fails to pay, to claim the sums due directly from the client.
ℹ To exercise it the subcontractor must have been accepted by the client with its payment terms approved; have given the main contractor formal notice to pay by recorded delivery; and have sent a copy of that notice to the client. If the client has not yet paid the main contractor, it must set aside the sums due to the subcontractor. It can then no longer pay them freely to the main contractor.
Chained subcontracting: risks and limits
Chained subcontracting is the situation where a subcontractor itself subcontracts all or part of its work to another. The practice is legally possible but generates substantial risks.
| Quality risk | The longer the chain, the harder it is to control the quality of the work. The smallest subcontractors are often the least equipped for quality control. |
|---|---|
| Legal risk | A second-tier subcontractor has no direct action against the client; its only recourse is against the party that engaged it. |
| Social risk | Some forms of chained subcontracting conceal illegal working or social dumping. The main contractor's liability is engaged if its subcontractors are non-compliant. |
| Dilution of responsibility | In the event of damage, a multiplicity of parties complicates identifying responsibility and pursuing the statutory warranties. |
Good practice
- Require the complete list of subcontractors when the offer is submitted, and at every change during construction.
- Check each subcontractor's approval before it starts work; do not wait until the valuation is made.
- Insert a clause in the administrative conditions making the main contractor jointly liable for its subcontractors' work.
- Limit chained subcontracting contractually to the first tier: prohibit sub-subcontracting without the client's express agreement.
- Require subcontractors to carry the same levels of statutory and professional liability insurance as the main contractor.
- Where there is doubt about the main contractor's solvency, provide for direct payment to the subcontractor from the outset through a specific clause.
Related articles: Writing the specification and the conditions of contract · How a construction tender works · Construction procurement and tendering
Cost estimates, pricing schedules, development appraisals, summary notes. Produce in minutes the deliverables you prepare manually today. First project free. → quostra.com
The legal information rests on the act of 31 December 1975 and its implementing decrees in force in France in 2026. This page is not legal advice; consult a specialist lawyer for complex situations.