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Subletting and Subcontracting

Most departmental contracts prohibit subletting the work. Contractors do it anyway, informally, and it is one of the fastest ways to lose a registration.

Why departments care so much

A department awarded the contract to you, on your registration, your capacity and your track record. Handing the work to someone else defeats the entire evaluation — the department is now relying on a contractor it never assessed.

That is why prohibited subletting is treated seriously rather than as a technicality. It is grounds for terminating the contract and for action against your registration, which reaches every other contract you hold.

The informal version is the common one: a contractor wins work and hands the whole site to another firm for a margin. Everyone in the local market knows. Departments find out.

What is generally allowed

  • Engaging labour and buying materials is not subletting.
  • Specialist work, where the contract permits it and the department approves the specialist.
  • Written approval for a specific subcontractor, where the contract provides a route. Use the route rather than working around it.
  • A joint venture disclosed at bid stage is a different thing entirely and is permitted where the tender allows — see our page on joint ventures.

The line is between resourcing your own execution and handing over execution itself. If the other firm is running the site and you are collecting a margin, that is the prohibited version regardless of what the paperwork says.

Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.

Common questions

It is, and the consequence is not a fine - it is your registration. Since your registration is what lets you bid at all, that is a much bigger loss than the margin on one contract.

Usually not, if the contract permits it and you follow the approval route. Get it in writing rather than assuming.

Not as a way around subletting rules. A joint venture has to be disclosed at bid stage where the tender allows it.

Take it seriously and respond properly. See our page on show cause notices and debarment, and send us the notice.

Send us your case

Tell us what the arrangement actually is. We will tell you straight whether it is a problem.

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