In posting, Subcontractors

How does collaboration work?

There are now many sectors in which more and more subcontractors are being used. In industry, construction and trade sectors in particular, there is a fairly severe shortage of skilled labour, which is being filled by the use of foreign employees.

There are several aspects to consider that typically don’t apply when working with German staff. Be it licences or certificates, there is a lot to do with foreign staff. Today, we are going to take a look at the basic things you need to bear in mind to ensure that your collaboration with foreign subcontractors is successful.

What is the relationship between the client, the main contractor and the subcontractor?

The relationship between these three parties is of crucial importance. The client usually negotiates the costs, conditions, legal framework and the quality and qualifications of the subcontractor with the support of site managers, project managers and purchasers.

It is particularly important here that there are very clear agreements that everyone can follow correctly. Transparent communication helps to prevent misunderstandings and avoid problems afterwards.

Are Subcontractors allowed to work without a contract?

In principle, it is possible for a subcontractor to work without a contract . However, there are various legal aspects that need to be considered. It is therefore not advisable. However, if the client or the subcontractor do agree to work together without a contract, all agreements should be set out in writing so that there are no disputes later on.

What about liability claims and documentation obligations?

The first thing you should know here is that the client has no direct liability claim against your subcontractor. Under German law, there is no direct legal relationship with the client. The main contractor is liable for the services that the subcontractor performs on behalf of the client.

However, you also have the option of making claims against the subcontractor, particularly in the event of damage or defects in the work. It is therefore important that all agreements and the services commissioned are set out in writing beforehand.

What do invoicing and service descriptions look like for subcontractors?

The main contractor or client can sit back and relax here, because the subcontractors issues an invoice. The service description is clarified in detail between the two parties beforehand. Particular care should be taken to describe the services precisely. This will avoid discrepancies or misunderstandings on both sides.

The description protects both sides. The subcontractor knows exactly what he has to do and the client knows what he is paying for.

What are the advantages and disadvantages of subcontracting without a contract?

As with everything, there are advantages and disadvantages. Of course, you are more flexible without a contract and may be able to process your clients' orders more quickly. But when you think about issues such as legal protection, liability and quality assurance, it is definitely advisable to conclude a contract.

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