Subbies don't remove liability
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Subcontracting is common in the haulage industry—more common than in almost any other industry. But many hauliers make the mistake of believing that if they subcontract a load they are relieved from all liability to the original customer and have no liability for the performance of the subcontractor.
Wrong. Take the following example: Acme Ltd instructs GB Haulage to take a load from London to Aberdeen for £600. GB Haulage subcontracts the load to ownerdriver John Smith at a price of £500.
What GB Haulage has to ensure is that the terms of its contract with John Smith are exactly the same as the terms of the contract with Acme. Acme might impose its terms and conditions on GB Haulage, including a limitation of liability clause of, say, £2,000 a tonne. But that clause will not be part of GB's contract with John Smith unless GB makes it part of the contract.
If John Smith trades under RHA Conditions of Carriage and the goods are destroyed in an accident, GB could be left holding the baby.
The other thing to consider when subcontracting is that there is no direct contract between the subcontractor and the customer. If GB goes into liquidation, John Smith can whistle for his money. He cannot sue Acme because he has no contract with them. All he can do is look to the liquidator of GB. However, Smith does have a contract with GB, so if Acme goes into liquidation he is still entitled to his money from GB, even if GB has not been paid.
The bottom line is, when you subcontract make sure you use "back to back" contracts or you risk counting the cost.