Jurisdiction(s):
Ireland

Ireland: Subcontracting in Major Technology Services—Prime/Subcontractor Contracting Process, Selection, Flow-downs, Approval Rights, Pricing and Data Protection under GDPR and Central Bank of Ireland Outsourcing Guidance

Published by a Lexis+ Ireland - Commercial expert

Practice notes

The prime/subcontractor model

To deliver a complete IT portfolio for clients, technology providers may engage specialist third parties to enhance their proposition. In this scenario, the provider is commonly the prime contractor, and any extra suppliers appointed by the prime to perform parts of the contracted services are treated as subcontractors. Under this prime/subcontractor arrangement, the prime holds contractual, financial, and operational accountability for providing the services to the customer under the prime contract, regardless of whether delivery is undertaken by the prime itself or by a subcontractor. Consequently, where a subcontractor’s act or omission gives rise to a breach of contract and causes loss, the customer will be entitled (subject to the contract terms) to bring a contractual claim against the prime contractor for the damages suffered due to the subcontractor’s default. Owing to this exposure, the prime will often seek to charge the customer a risk premium, in addition to the overhead and profit margin it applies to the subcontractor’s charges. For assistance with drafting and negotiating sub-contracts,...

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Web page updated on 22/05/2026

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