Operations guide

How to hire a subcontractor without losing control of the project

The agreement, the pay structure, and the operational discipline that turns a subcontractor relationship into leverage instead of liability.

·7 min read·Operations

Quick answer

When subcontracting freelance work, use a written subcontractor agreement covering scope, pay rate, IP transfer, confidentiality, and non-solicitation. Pay the subcontractor on a defined schedule (not 'when the client pays me'), retain ownership of all client-facing IP, and never let the subcontractor speak directly to your client unless you've explicitly agreed to it. Treat them as a vendor, not a partner.

Hiring a subcontractor is the moment a freelance practice starts to behave like a small business — and the moment most of the practice's risk shifts from delivery to coordination. The legal exposure, the IP chain, and the client relationship all run through you. Done well, subcontracting buys time and scales output. Done badly, it produces work you can't ship, payment disputes you didn't sign up for, and clients who eventually figure out they could hire your subcontractor directly.

Always have a signed subcontractor agreement

The agreement covers scope of the engagement, pay rate, payment schedule, IP transfer (subcontractor assigns ownership of deliverables to you), confidentiality (they can't share the client's name or work publicly without permission), and non-solicitation (they can't approach your client directly during the engagement or for some period after, typically 12 months). This isn't paranoia — it's the document that keeps your client relationship yours.

Pay on a defined schedule, not 'when the client pays me'

Tempting as it is to align your payable schedule with your receivable schedule, you become the subcontractor's bottleneck if you do. Standard: pay net-14 or net-30 from invoice receipt, regardless of when your client pays you. This means you're carrying float — that's the cost of being the prime contractor. Build that cash-flow buffer into your own pricing so it doesn't bite mid-project.

Mark up the subcontractor's rate, but transparently to yourself

The standard freelance mark-up is 30-50% over the subcontractor's billed rate to you. The reason isn't greed — it's that you're covering project management, client communication, quality review, IP risk, and the float on their pay. If you charge the client the same rate you pay the subcontractor, you've created a charity. Pricing should let you absorb a subcontractor's missed deadline without going underwater.

Keep the client relationship yours

Never CC the subcontractor on client emails unless you've agreed they're a known team member. Don't introduce them on calls unless necessary. Route all feedback through you so you can translate, smooth, and protect both sides. Many freelance subcontractor relationships collapse because the client and subcontractor connected directly, the client realised they could save your mark-up, and the next engagement went around you. The non-solicitation clause helps, but operational discipline matters more.

Review the subcontractor's work before the client sees it

The deliverable that lands in the client's inbox is your reputation, not the subcontractor's. Build a review step into every deliverable — even a quick eye-pass. Most subcontractor problems are caught at this step: a deliverable that's 'fine' from the subcontractor but isn't quite on-brand for your client. Catching it before it ships is how you keep both relationships intact.

Handle the 1099/contractor-classification question correctly

In the US, if you pay a subcontractor more than $600 in a calendar year, you'll need to send them a 1099-NEC. Collect a W-9 at the start of the engagement so you have their tax info on file. The classification 'independent contractor' is critical — if you control their hours, tools, and methods, the IRS may reclassify them as an employee, which triggers payroll tax obligations. Outside the US, equivalent rules apply (e.g. CIS in the UK, BAS reporting in Australia). Don't wing the classification.

Key takeaway

Subcontracting works when the agreement is tight, the payment schedule is yours to manage, and the client relationship stays through you.

Track subcontractor pay against project revenue

Log subcontractor expenses against the project in kinako so you can see real margin per engagement — not just top-line revenue.

Get started free

Free plan · No credit card required

Frequently asked questions

Should I tell my client I'm using a subcontractor?

Check the original client contract — many include a 'no subcontracting without prior written consent' clause. If yours does, you're legally required to disclose and get approval. Even if it doesn't, telling the client upfront is the better long-term move; surprises after the fact damage trust. Frame it as 'I'm bringing in [specialist] to support [specific scope]' — most clients are fine with it.

What if the subcontractor delivers late and my client deadline slips?

The delivery to the client is your responsibility, not the subcontractor's. Build buffer into the timeline you give the client (typically 20-30% over the subcontractor's estimate) and have a contingency plan — usually 'I do the work myself if the subcontractor falls through.' If the subcontractor missed because of negligence, document it and adjust their next engagement or stop using them. Don't push the slippage onto the client.

Can I pay a subcontractor a percentage of the project fee instead of an hourly rate?

Yes, and many freelancers do — percentage splits work for project-based engagements. Standard ranges are 40-60% to the subcontractor depending on how much project management and client interaction you're handling. Whatever the split, write it into the agreement and confirm the total project fee with the subcontractor before they start so there's no ambiguity.

Keep reading

Pricing · 9 min

How to set freelance rates that don't undersell you

A grounded approach to pricing — how to think about hourly versus project rates, how much to charge, and how to raise prices without losing clients.

Contracts · 9 min

How to write a freelance contract that actually protects you

The clauses, structure, and language that prevent the disputes most freelancers learn about the hard way.

Pricing · 7 min

How to structure retainer pricing so you don't end up underpaid

Three retainer pricing models, when each one fits, and the boundaries that keep a retainer from becoming an unpaid full-time job.