Responsibility in the Audiovisual Sector: Who Is Liable When a Subcontracted Production Company Makes a Mistake?

Responsibility in the Audiovisual Sector: Who Is Liable When a Subcontracted Production Company Makes a Mistake?

In the audiovisual industry, teamwork isn’t optional it’s the norm. Rarely is a project handled by a single company. Behind every film, series, or commercial, there’s a web of collaborations where various production teams and professionals come together to get the job done. Within this structure, subcontracting is practically a standard tool. But when something goes wrong, who’s to blame?

It’s not always clear whether liability falls on the company that signed the contract with the client or on the subcontractor that made the mistake. These situations can lead to serious legal issues, especially if roles and responsibilities weren’t clearly defined from the start. In this article, we look at how subcontracting is regulated in the sector, what the law says about liability, and why a well-drafted contract can make all the difference between a minor hiccup and a major problem.

Legal Framework for Subcontracting in the Audiovisual Industry

Subcontracting is perfectly legal and widely used across many industries and audiovisual production is no exception. In Spain, it’s governed by general legal principles from the Civil Code, such as contractual freedom, good faith, and the binding nature of agreements. In some cases, where public funding is involved, the Public Sector Contracts Law also applies, imposing extra requirements for oversight and transparency.

Things get more complex in what’s known as a “subcontracting chain”: the main production company delegates work to a second company, which in turn hires a third, and so on. While this is completely legal, it carries certain risks. If a subcontractor makes a mistake, the main production company is often the one the client will hold accountable unless it can prove that it acted with proper diligence.

If subcontracted personnel are employees, labor laws also come into play. Workers’ rights, social security obligations, and working conditions don’t get watered down just because there are multiple companies involved. In fact, in some serious cases, the principal company may even share legal liability.

And in international productions, additional layers come in: treaties, local regulations, and cross-border rules all affect how subcontracting and liability are handled. So beyond the creative aspects, production companies need to stay legally alert to avoid unpleasant surprises.

Responsibilities Between Production Companies and Subcontractors

Everything may seem to run smoothly on set until something goes wrong. Let’s say the main production company hires a subcontractor to create the visual effects for a series. The subcontractor delivers the work late, or with technical flaws that impact the final product. The client complains. Who’s responsible?

In most cases, it’s the main production company that will be held accountable. That’s because, legally, they’re the ones who signed the contract and are therefore responsible for ensuring that the project is completed as agreed. The subcontractor has no direct relationship with the end client.

That said, the subcontractor is not off the hook. If the main production company can prove that it chose a reliable provider, gave clear instructions, and supervised the work properly, it can in turn seek damages from the subcontractor. The key lies in being able to demonstrate that diligence through contracts, emails, reports, partial deliveries and any documentation showing the work was handled responsibly.

In short, liability isn’t just about who made the mistake, but about who was supposed to prevent it. And in practice, lack of foresight often causes more damage than the error itself.

How to Prevent Conflicts Through Contracts

In the rush of a new project, it’s all too common for agreements to be sealed with a quick call, a short email, or a verbal understanding. But when budgets, deadlines, and reputations are on the line, that simply isn’t enough. A solid contract doesn’t just protect you when things go wrong it helps prevent them from going wrong in the first place.

So what should a subcontracting contract include? First, a detailed description of the service: deliverables, deadlines, formats, and quality standards. Second, a clear outline of what happens if something goes wrong: delays, substandard work, or legal violations like using copyrighted content without permission or breaching rights of image or credit.

It’s also crucial to define intellectual property rights: who owns the work produced, whether it can be reused, and who’s responsible for third-party rights. Confidentiality clauses, penalties for non-compliance, and dispute resolution mechanisms—whether through court, arbitration, or mediation are all essential parts of a solid agreement.

And don’t forget to account for extraordinary events: illness, strikes, travel restrictions, or force majeure. Thinking ahead in these areas can make a real difference when the unexpected hits.

Of course, a contract alone isn’t enough. Ongoing communication and proper oversight are just as important. Weekly check-ins, progress reviews, and clear approval processes can often prevent a problem from becoming a full-blown conflict.

Importance of consultancy with the third party contract

Subcontracting is part of everyday life in audiovisual production. But doing it right means more than just delegating tasks it means understanding responsibilities, managing risks, and putting the important things in writing. Because when something goes wrong, the client won’t be looking for someone behind the scenes they’ll be coming straight to the company that signed the deal.

Understanding the legal framework, drafting solid contracts, and working with common sense doesn’t just protect you from liability it builds trust across the board. At the end of the day, a well-managed production is one where everyone knows their role, what’s expected of them, and what happens if things don’t go as planned.