Veryfy

Subcontracts, Construction Sites and Joint/Several Liability

Published on · Updated to

In short: whoever awards work by subcontract does not free themselves from the subcontractor's financial risk: at several specific points, the law makes them jointly responsible — towards the subcontractor's workers (joint liability for wages), towards the tax authorities (withholdings not paid), and operationally towards their own client if the subcontractor stops halfway through the works. A regular DURC does not rule out any of these risks.

The six moments of risk in the life cycle of a subcontract

Why a regular DURC is not a sufficient guarantee

The DURC (Documento Unico di Regolarità Contributiva, the single certificate of social security contribution compliance) certifies that social security and insurance contributions were paid regularly at a precise date — it does not certify the financial solidity of the subcontractor, nor does it exclude the contractor's joint liability for wages not paid to workers (art. 29, para. 2, D.Lgs. 276/2003). A subcontractor may have a regular DURC today and find itself without the liquidity to pay next month's wages: these are two different data points, and neither replaces the other.

What this pillar is not

Veryfy is not a law firm: our know-how is financial risk management, with algorithms that cross-check financial statements and other official databases. This pillar does not replace the advice of a lawyer specialised in labour law or public contract law for managing litigation already in progress, nor the technical verification of a subcontractor's qualification requirements (SOA, categories). It is the level of financial verification and awareness of joint risks that a contractor should apply before and during the award of a subcontract.

Frequently asked questions

Does a regular DURC rule out joint liability for wages not paid by the subcontractor?

No. The DURC (Documento Unico di Regolarità Contributiva, the single certificate of social security contribution compliance) certifies that social security and insurance contributions were paid regularly at a given date, but it does not certify that wages were actually paid to workers: the contractor remains jointly liable pursuant to art. 29, para. 2, D.Lgs. 276/2003.

What are the six moments of risk in a subcontract?

Unpaid wages despite a regular DURC, financial verification before awarding the work, the subcontractor's bankruptcy during works, unpaid withholding taxes, economic-financial requirements in a public tender, and a change of administrator during the works.

Why does the party awarding a subcontract not shed the subcontractor's financial risk?

Because the law makes it jointly responsible at several specific points: towards the subcontractor's workers (joint liability for wages), towards the tax authorities (withholdings not paid), and operationally towards its own client if the subcontractor stops halfway through the works.

Want to check a specific company?

Credit limit, beneficial owner and warning signs, in minutes.

Check a company

In this pillar