A subcontractor in the chemical industry is an individual or a company that’s commissioned by a contractor to perform certain duties at a chemical plant or facility. They may work on a specific part of a project or they might perform general tasks relating to all stages of the operation.
Chemical subcontractors are typically covered by process safety management (PSM) standards, which are designed to prevent accidents and injuries in the workplace. The PSM regulations include protocols on how to handle hazardous chemicals like corrosive acids and bases, flammable liquids, and toxic substances.
This article explores the role of a subcontractor in the chemical industry, the type of duties they perform, and the risks involved. You can also learn more about contract manufacturing in our handy guide.
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What is a subcontractor?
Generally speaking, a subcontractor is an individual or a company that works under a contractor. As subcontractors report to the contractor, they don’t typically have a direct connection to the main client during a particular project. A subcontractor may or may not need the approval of the main client, depending on the contract.
A subcontractor in the chemical industry can be another company, for example, an ampoule filling business, or an individual who’s hired to work in the factory or provide maintenance services. 
In some cases, subcontractors have highly-specialised skills, knowledge, and equipment that the main contractor does not. However, a subcontractor can also be an ordinary worker who the contractor hires on a temporary basis.
What is the role of a subcontractor?
The role of a subcontractor is to fulfil the tasks or responsibilities that are assigned to them by the main contractor based on the agreed contract. This can range from simply providing additional manpower to offering expert advice or assistance.
A subcontractor’s tasks may involve part or all of the components of a project. It can also be something tangential, such as providing security and safety for the work site or factory.
The risks as a subcontractor in the chemical industry
The risks of being a subcontractor in the chemical industry vary depending on the designated tasks or services set out in the contract. Some contractors face more risks than others.
For example, a company that’s subcontracted to handle the disposal of toxic waste byproducts is exposed to far more risk than a subcontractor who’s providing payroll or bookkeeping services for the chemical industry.
Aside from the physical hazards, there’s also the risk of financial losses. As a subcontractor, there’s a chance you might not get paid if the contractor doesn’t receive payment from the client. This might be the case if the client cancels the contract due to insolvency, for example. Unless you’re paid upfront or there’s an agreement of guaranteed pay, there’s always a risk of financial loss.
Potential lawsuits are another risk for subcontractors in the chemical industry. Not only can you be sued by the main contractor, but there’s also the risk of legal action from the client and their customers. As a subcontractor, you can be held accountable for any mishap, property damage, injury, or death that occurs during your contract period. This might relate to a direct or indirect liability on your part.
What are the duties of a chemical subcontractor?
As a subcontractor, your duties are primarily to accomplish all of the tasks and deliverables agreed on with the main contractor. You have a responsibility to complete these duties on time and to a high standard, while also ensuring the safety of your workers. All chemical subcontractors must follow the safety, health, and environmental protocols as mandated by law.
You can read more about the duties of a chemical subcontractor below.
1. Task-based contracts
Task-based contracts are those that assign specific or specialised tasks to the subcontractor. These types of contracts typically relate to one aspect of the chemical manufacturing process. For instance, a subcontractor may be solely tasked with preparing and supplying reagents and precursors.
2. Health & safety
Subcontractors have a duty to ensure the health and safety of employees under their direct supervision. This means providing the appropriate PPE and safety equipment, following the necessary protocols, and conducting regular inspections to keep workers safe. You must also ensure that chemicals are handled and stored correctly. 
Subcontractors often work at the contractor’s manufacturing plant or at the client company itself. However, they may also work independently in their own facilities.
3. Outlining tasks
As a subcontractor, you’re expected to have a clear understanding of the tasks based on the deliverables.
The main contractor will assume you have the necessary expertise and resources to properly perform the assigned tasks. To perform your duties effectively, you’ll need to ensure employees are briefed properly and that tasks are clearly outlined and designated appropriately.
How to minimise chemical hazards for chemical subcontracting
Risks are part and parcel of chemical subcontracting. As previously mentioned, these risks include physical hazards, potential financial losses, and possible lawsuits. The good news is there are several ways you can minimise these risks:
- Implement health & safety regulations – following in-house and statutory health and safety regulations can help to prevent work-related injuries or deaths. It may also reduce the risk of potential lawsuits.
- Be open about risk – this means recognising risks and anticipating hazards. Taking proactive action to remedy current problems and address potential ones is a great way to minimise the hazards associated with chemical subcontracting.
- Ensure on-site policies are clear – on-site policies relating to work and product quality standards, safety protocols, and productivity targets, must be clear and leave no room for misinterpretation. As a subcontractor, it’s important to ensure these policies are implemented correctly. As well as helping to minimise risk, it can also boost productivity.
Summary
Subcontractors in the chemical industry are commissioned by a contractor to perform certain duties or roles in line with the agreed contract. Depending on the nature of the work, their tasks may relate to a particular part of the project or the whole process. Subcontractors have a responsibility to follow the relevant health and safety protocols. They should also be proactive and anticipate risks.
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