Subcontractor
An external specialist or agency brought in to deliver part of a project, usually under the lead agency's brand and contract.
For example, a design agency wins a project needing motion graphics it cannot staff, so it subcontracts a motion specialist - often white-labelled - and delivers the whole thing under its own name. The client sees one agency; the agency keeps the relationship.
Why it matters to agencies: subcontracting lets an agency take on work beyond its in-house skills or capacity without hiring, protecting margin and flexibility. The keys are a clear scope, a confidentiality and IP agreement, and enough markup to cover the management overhead.
you own the client relationship and manage the subcontractor behind it
- No contract or NDA with the subcontractor.
- Letting them talk to the client unmanaged.
- Passing their cost through with no markup.
What is a subcontractor?
An external specialist or agency brought in to deliver part of a project, usually under the lead agency's brand and contract.
Why do agencies use subcontractors?
To deliver skills or capacity they do not have in-house, without the fixed cost and commitment of hiring.
How do agencies make margin on subcontractors?
By marking up the subcontractor's cost to cover management, risk and overhead - while keeping the client relationship and brand.
What should a subcontractor agreement cover?
Scope, deliverables, confidentiality, IP ownership, payment terms, and a non-solicit so the subcontractor does not poach the client.