Direct answer: A subcontracting/outsourcing page cannot just say "we have stable outsourcing resources." It should state which processes/machines may be outsourced, which must stay in-house, whether customer consent is required for subcontracting main work, how subcontractors are admitted and audited, how quality liability is allocated, how drawings/programs/customer information are protected, how delivery and batches are traced, how price and settlement work, how EHS and labour are managed, and how change and exit are handled. Otherwise, when a customer asks "who did this process, did you get my consent, who is liable if it fails, will my drawings leak," the answer is an ad-hoc explanation.

This guide is for procurement, quality, engineering, production, legal, EHS, and website teams at manufacturers in Changzhou and nearby industrial areas. It explains how to build and accept a subcontracting/outsourcing page. Information is current to 2026-11-02. It is a review of public regulations and project practice, not procurement, quality, contract, or legal advice; specific scope, subcontract approval, quality liability, confidentiality, and exit depend on the contract, technical agreement, customer requirements, and applicable law.

Three things to remember

A contractor should in principle complete the main work with its own equipment, technology, and labour; assigning main work to a third party requires the client's consent, and the client may terminate without it. Subcontracting does not remove liability: the contractor remains responsible to the client for the third party's work. Outsourcing is not "throwing the work over the wall"—scope, approval, audit, confidentiality, traceability, and exit must all be written down.

How does the outsourcing page relate to procurement, supplier-code, AVL, and contract pages?

The procurement page answers "how we generally buy"; the supplier-code page answers "our requirements on labour, safety, environment, and ethics"; the AVL page answers "how suppliers are admitted"; the contract page answers "breach and document precedence"; the outsourcing page answers "which work may be outsourced, whether subcontracting needs customer consent, how subcontractors are managed, how quality liability is split, how drawings are protected, and how batches are traced." Outsourcing is capacity/process cooperation; procurement is buying materials/services. Both manage suppliers, but with different focus.

The common break is: sales says "we do everything in-house" while a key process is outsourced; the contract says "no subcontracting without consent" but production hands the main process to a subcontractor; subcontractors are not audited and quality fluctuates; drawings/programs are sent by personal chat apps without an NDA; outsourced parts have no batch marking and a complaint cannot be traced; labour or safety problems at the subcontractor reach the OEM. A page that states scope, approval, audit, liability, confidentiality, traceability, and exit gives sales, procurement, quality, and legal one playbook.

Page/entryAnswersAudienceCannot replace
Outsourcing pageScope, approval, audit, liability, confidentiality, traceabilityCustomer, procurement, qualitySubcontract/technical agreement
Procurement pageGeneral process, admission, paymentSuppliers, procurementSubcontract approval and liability
Supplier codeLabour, safety, environment, ethicsSuppliersOutsourcing scope and quality
AVL pageAdmission documents, audit questionnaireSuppliersProject-specific subcontract approval
Contract pageBreach, document precedenceLegal, procurementOngoing subcontract management

This page map is editorial; subcontracting of main work and liability are in Articles 772 and 773 of the Civil Code.

What types of outsourcing exist, and how should scope be stated?

At least five: process outsourcing (heat treatment, surface treatment, machining, welding, painting), component outsourcing (assemblies/modules), whole-machine OEM/private label, auxiliary work (packaging, logistics, testing, repair), and labour/capacity cooperation (on-site staff, temporary labour). For each, state whether it involves main work, whether customer consent is needed, whether the subcontractor is on the customer's AVL, how quality liability is split, and whether drawings/programs are provided. Do not reduce it to "some processes are outsourced."

Scope must land in the routing/BOM/contract: which processes are in-house, which outsourced, subcontractor names (may be redacted), customer designation or approval, and whether key characteristics/special processes (welding, heat treatment, surface treatment) are outsourced. Where the customer contract prohibits subcontracting, comply strictly; where allowed, define the approval flow. The page can say "process outsourcing/whole-machine OEM supported" without publishing customer names or process parameters.

TypeWhat to stateEvidenceCommon gap
ProcessProcess, special process, subcontractorRoutingNot stated
ComponentAssembly/module, interface, liabilityBOM/drawingLiability unclear
Whole-machine OEMBrand, model, customer approvalContractCustomer unaware
AuxiliaryPackaging/logistics/testing/repairListTreated as main work
Labour/capacityOn-site, employment, EHS dutyAgreementDuty unclear

This classification is editorial; specific scope follows the routing, BOM, contract, and customer requirements.

Does subcontracting main work need customer consent?

Yes. Article 772 of the Civil Code provides that a contractor should complete the main work with its own equipment, technology, and labour unless otherwise agreed; where main work is assigned to a third party, the contractor remains responsible to the client for that work, and without the client's consent the client may terminate. Article 773 allows auxiliary work to be assigned to a third party, but the contractor still remains responsible to the client for that work. So "main work" subcontracting requires checking the contract and obtaining consent; auxiliary work still carries responsibility for the result.

"The customer did not know" is not "implied consent": where the contract requires written consent, obtain it in writing; even without such a clause, notify in good faith, especially for key characteristics, special processes, customer-designated materials, or confidential information. Keep approval records (email/minutes/supplier approval form) and state liability in the quality agreement. If the customer refuses, do not do it first and explain later—it may lead to termination.

ScenarioWhat to doBasisCommon gap
Main workComplete in-house; consent to subcontractArt. 772Do first, explain later
Auxiliary workMay subcontract; still liable for resultArt. 773Assumed exempt
Contract prohibitionDo not subcontractContractHidden outsourcing
Customer designationFollow designated/approved listContract/AVLSwitched without notice
Approval recordWritten, scope, periodEmail/approvalVerbal

Subcontracting rules are in Articles 772 and 773 of the Civil Code; specifics follow the contract.

How is quality liability split? Are we still liable after subcontracting?

Subcontracting does not exempt: the contractor remains responsible to the client for the third party's work; where delivered work does not meet quality requirements, the client may claim repair, rework, price reduction, damages, and other breach remedies. Externally, the producer remains responsible for the final product; a subcontractor's problem cannot simply be pushed to the customer. Internally, the manufacturer can recover from the subcontractor (rework, sorting, line-stop, customer claims) under the subcontract, with inspection records, notice, and causation evidence.

"The subcontractor did it, go after them" is internal recovery, not external exemption. The OEM/customer only knows the contractor it contracted with; when a customer claims, the manufacturer bears first and recovers afterwards. Outsourced parts need incoming inspection/verification (dimensions, performance, appearance, special-process records); key characteristics need sampling or full inspection; on nonconformity, notify the subcontractor in writing and segregate. The page can say "outsourced parts are inspected and recovered per agreement," but not "the subcontractor bears all quality liability."

LevelLiabilityBasisCommon gap
ExternalContractor liable for the work resultArt. 772Pushed to subcontractor
NonconformityRepair/rework/reduction/damagesArt. 781Rework only
Incoming inspectionVerify, segregate, notify per agreementQuality agreementInspection waived
Internal recoveryRework/sorting/line-stop/customer claimSubcontractNo clause
Final productProducer responsible for qualityArt. 26Assumed exempt

Quality liability is in Articles 780 and 781 of the Civil Code and Article 26 of the Product Quality Law.

How should subcontractors be admitted and audited?

Subcontractors are external providers and must be controlled as such: qualifications, quality system, equipment/capacity, process capability, special-process qualifications (welding/heat treatment/surface treatment), EHS, finance, and confidentiality. Audit methods include on-site audit, questionnaire, samples/first article, pilot runs, and shared customer audit reports; key/special processes need stricter checks (process qualification, equipment calibration, personnel qualification). After admission, review performance regularly (quality, delivery, response); failures require correction/downgrade/exit.

"We have worked together for years" does not mean "no audit needed": changes in people, equipment, or materials can affect quality; key processes need a second source or capacity backup. Customer-designated subcontractors must also be audited (designation does not remove the manufacturer's responsibility). Keep audit records, sample approval, first article, pilot runs, and performance reviews. The page can say "subcontractors are managed as approved suppliers," but must not publish the list or audit details.

ItemWhat to doEvidenceCommon gap
Qualification/systemLicence, certification, quality systemCertificatesAudit waived
Equipment/capacityKey equipment, capacity, lead timeAudit reportNot assessed
Special processesProcess qualification, calibration, personnelQualification recordUnqualified
Sample/first articleApproval, pilot, validationApprovalMass production
PerformanceQuality, delivery, responseReview recordNot reviewed
Second sourceBackup for key processesListSingle subcontractor

These audit requirements are editorial; external-provider control may follow GB/T 19001-2016, clause 8.4.

How should drawings, programs, and customer information be protected?

Outsourcing requires an NDA defining the permitted use of drawings/programs/formulas/customer lists/prices/process parameters, copying limits, personnel access, return/destruction, and liquidated damages; transmit through controlled channels (encryption/watermark/access), not personal chat apps or cloud drives. Customer proprietary information must not be used for other customers or the subcontractor's own products; further subcontracting requires approval. On staff departure or contract end, recover documents, close accounts, and confirm destruction.

"Send the drawing so they can quote" is common but needs boundaries: sign the NDA first, share only necessary information, watermark/version it, limit the use period; if no order results, recover/destroy. A subcontractor passing drawings to a second-tier subcontractor is further subcontracting and needs consent. The page can say "outsourcing requires an NDA and controlled transmission," but must not publish customer drawings or processes.

ObjectWhat to doEvidenceCommon gap
NDAScope, term, breach, returnSigned copyNot signed
Drawings/programsWatermark, version, access, encryptionDistribution recordChat apps
Customer infoProject-only use, no reuseUndertakingReused
Further subcontractConsent, additional NDAApprovalPrivate transfer
TerminationRecover, close accounts, destroyRecovery recordNot recovered

These arrangements are editorial; specifics follow the NDA, contract, and customer confidentiality requirements.

How should delivery, marking, and traceability be managed?

Outsourced parts need batch/serial numbers, subcontractor identification, production date, and inspection status; incoming inspection records should link to the purchase order, drawing revision, and process parameters; a complaint must trace "which subcontractor, which batch, which drawing revision, which process." Key characteristics/special processes need process records (heat-treatment curves, welding parameters, coating thickness); subcontractor changes (equipment/material/process/site) must be notified and re-validated.

"No marking on outsourced parts" is the main cause of broken traceability: mixed material, mixed batches, and wrong drawing revisions. Require subcontractors to mark per agreement and provide inspection reports/material certificates/process records with the shipment; re-label with an internal batch label after receipt and keep the original. The page can say "outsourced batches are traceable, key processes recorded," but must not publish process parameters.

ItemWhat to doEvidenceCommon gap
MarkingBatch/serial, subcontractor, dateLabel/photoNo marking
Shipping documentsInspection report, material cert, process recordReportMissing
Incoming inspectionDimension/performance/appearance/special processInspection recordWaived
LinkingOrder, drawing revision, parametersSystem recordBroken chain
ChangesEquipment/material/process/site noticeChange recordNo notice

Traceability requirements are editorial; specifics follow the quality agreement and customer traceability requirements.

How should price, settlement, and tooling be agreed?

State the pricing method (per piece/hour/weight/process), tax-inclusive or exclusive, freight, packaging, minimum batch, price-adjustment mechanism, payment terms, and reconciliation cycle; separately agree who provides tooling/fixtures/gauges, who pays, ownership, custody, maintenance, and transfer. Include breach and substitution terms if the subcontractor raises prices or stops supply; key outsourcing needs a second source.

"Outsourcing is cheaper than in-house" must count total cost: transport, packaging, inventory, inspection, rework, line-stop, management; cheap outsourcing can bring quality and delivery risk. Tooling at the subcontractor's site needs a list, marking, inventory, insurance, and return terms; on termination, it must be recoverable. The page can say "prices per agreement, tooling ownership clear," but must not publish specific prices.

ItemWhat to stateEvidenceCommon gap
PricingPer piece/hour/weight/processQuotationMixed basis
Tax/freightTax, freight, packagingContractAdded later
AdjustmentTriggers, approvalAdjustment letterArbitrary increase
PaymentTerms, reconciliation, invoiceContractNot stated
ToolingOwnership, custody, maintenance, returnListOwnership unclear
SubstitutionSecond source, switchListSingle source

Price and tooling arrangements are editorial; specifics follow the subcontract and finance policy.

How should EHS, labour, and compliance be managed?

Subcontractors must also meet EHS and labour requirements: work safety, occupational health, environmental permits, hazardous-waste handling, fire protection, and worker age/hours/wages/social insurance; for on-site/labour arrangements, state the employer, work-injury liability, training, PPE, access, and confidentiality. Customer audits may extend to subcontractors (second-party audit); the manufacturer must pass down EHS/labour requirements and spot-check.

"The subcontractor's problem is not ours" is increasingly untenable: customers/brands trace labour and environmental risk through the supply chain; a safety incident or environmental penalty can raise customer doubts about the OEM. Attach the code of conduct/EHS requirements to the subcontract, keep audit and correction records, and focus on high-risk processes (painting, welding, heat treatment, hazardous chemicals). The page can say "subcontractors must comply with EHS and labour requirements," but must not publish individual penalty cases.

ItemWhat to doEvidenceCommon gap
SafetyRules, training, PPE, incident reportingAudit/recordNo audit
EnvironmentPermits, emissions, hazardous waste, emergencyPermit/manifestUnlicensed
LabourAge, hours, wages, social insuranceRecordsChild/underpaid labour
On-site/labourEmployer, injury liability, trainingAgreementUnclear
Customer auditSecond-party audit, correctionReportRefused

These requirements are editorial; specifics follow regulations, the customer code of conduct, and the subcontract.

How should change and exit be handled?

Outsourcing changes (subcontractor, process, equipment, material, site, further subcontracting) require assessment, customer notification where the contract requires, and re-validation/first article; exit needs a switch plan, work-in-progress/inventory, tooling/drawings recovery, unsettled payments, continuing quality liability, and customer notification. A sudden loss of a key subcontractor needs an alternate and capacity backup, not a scramble after the line stops.

"Changing the subcontractor" is not a one-line purchasing decision: the customer may require approval, new PPAP/first article, and AVL/traceability updates; tooling/drawings/programs at the old subcontractor must be recovered. Quality liability does not disappear on termination (delivered batches may still be claimed). The page can say "outsourcing changes are assessed/approved and exit has a switch plan," but must not publish specific subcontractors.

StageWhat to doEvidenceCommon gap
AssessmentQuality/delivery/cost/riskAssessmentDirect switch
Customer noticeApprove per contractApprovalNo notice
Re-validationFirst article/pilot/PPAPValidation reportSkipped
Asset recoveryTooling/drawings/programsRecovery listLost
SwitchInventory, WIP, lead timePlanShortage
LiabilityDelivered-batch liability continuesContractAssumed ended

Change and exit arrangements are editorial; specifics follow the contract, customer requirements, and quality agreement.

What should the page say, and what must not be published?

A public page should include: outsourcing types and scope, main/auxiliary work and customer approval, subcontractor admission and audit, quality liability and recovery, confidentiality and further subcontracting, delivery marking and traceability, price and tooling, EHS/labour, change and exit, and a contact route. Do not publish: customer names, subcontractor lists, drawings/process parameters, prices, audit reports, or pending disputes. Say "process outsourcing/whole-machine OEM supported, subcontracting per contract"—not "everything in-house" or "subcontracting exempts us."

The page exists to let customers know what may be outsourced, how it is approved, and how liability is split—not to put the entire supply chain online. Wording must be precise: "main-work subcontracting requires customer consent," "outsourced parts are inspected and recovered per agreement," "subcontractors must meet EHS/labour requirements"—not "the subcontractor bears everything" or "customers need not worry." Customer confidential information is handled under NDA.

ModuleWhat to writeEvidence/assetCommon gap
Types/scopeProcess/component/whole-machine/auxiliary/labourList"Some outsourcing"
ApprovalMain work consent; auxiliary liabilityContractDo first, explain later
AuditQualification, equipment, special process, performanceAudit reportWaived
QualityExternal liability, internal recoveryQuality agreementPushed away
ConfidentialityNDA, controlled transmission, further subcontractSigned copyChat apps
TraceabilityBatch/marking/process recordsRecordsBroken chain
Price/toolingPricing, payment, ownership, returnContractUnclear
EHS/exitCompliance, change, switch, liabilityAgreement/planNo plan
Boundaries/linksNo customers/subcontractors/drawings; procurement/code/AVL reachableAccess controlOver-disclosure

These modules are editorial; public scope, customer data, and wording follow confidentiality and legal advice.

Go-live acceptance checklist

Ten checks: outsourcing scope, customer approval, subcontractor audit, quality liability, confidentiality, delivery traceability, price/tooling, EHS/labour, change/exit, and public boundaries. Each needs an owner, evidence, and review date. The pass condition is not "the page says we have outsourcing resources," but that a customer can confirm what is outsourced, whether it was approved, who is liable, and how it is traced, and the company can execute the process.

Before go-live, run one real outsourced process through: customer contract → outsourcing scope → customer approval → subcontractor audit → first article/pilot → incoming inspection → batch traceability → complaint recovery → change/exit. Any step that fails is a gap in the page or the process.

CheckPass conditionEvidenceIf it fails
ScopeProcess/component/whole-machine/auxiliary/labour statedList/routingAdd scope
Customer approvalMain work consent; auxiliary notifiedApproval recordObtain approval
Subcontractor auditQualification, equipment, special process, performanceAudit reportAudit
Quality liabilityExternal liability, internal recovery, inspectionQuality agreementAdd agreement
ConfidentialityNDA, controlled transmission, further subcontract approvalSigned copySign NDA
TraceabilityMarking, shipping documents, batch linkRecordsAdd marking
Price/toolingPricing, payment, ownership, returnContractAdd clauses
EHS/labourSafety, environment, labour, on-site dutyAudit/agreementAdd requirements
Change/exitAssessment, notice, re-validation, recovery, switchPlanAdd process
Boundaries/linksNo customers/subcontractors/drawings; procurement/code/AVL reachablePage testRemove/fix

This checklist is editorial; specific outsourcing, subcontracting, liability, and confidentiality follow the contract, customer requirements, and applicable law.

Who should read this, who should not, and what decisions does it support?

It suits manufacturers in Changzhou and nearby areas with process outsourcing, component outsourcing, whole-machine OEM, capacity cooperation, or customer subcontracting requirements—especially equipment, auto parts, electronics, metal processing, and surface treatment; it also suits buyers assessing a supplier's outsourcing management. It does not suit fully in-house businesses with no outsourcing, or teams wanting one page to replace contract/quality agreements.

Read it if you are in procurement, quality, engineering, production, legal, EHS, or a website vendor; you are building an outsourcing page, cleaning up the outsourcing list, responding to a customer subcontract audit, or handling outsourcing quality/confidentiality/exit; or you need to answer "what may be outsourced, is customer consent needed, how are subcontractors audited, who is liable, how are drawings protected, how are batches traced." Skip it if you sell "all in-house" while quietly outsourcing, do not audit subcontractors, or want a page saying "the subcontractor bears everything." It supports self-review of scope, approval, audit, quality, confidentiality, traceability, price, EHS, and exit.

Lingyi Information is a website development and enterprise AI project provider, not a procurement, quality, contract, or legal body. This article is not a substitute for procurement, quality, contract, or legal advice. Changzhou projects are delivered remotely or on site as confirmed per project; Lingyi is one candidate, does not claim a local office or team, and does not promise audit outcomes, conversion, or inquiries.

FAQ

What is the difference between outsourcing and subcontracting?

In daily use they are often mixed; legally, "subcontracting" means the contractor assigns work to a third party. Assigning main work requires the client's consent, and without it the client may terminate; auxiliary work may be assigned, but the contractor remains responsible for the third party's work. Scope, approval, and liability belong in the contract/quality agreement.

What if the customer does not consent to subcontracting?

Do not do it first and explain later. If the contract prohibits subcontracting, complete the work in-house or negotiate a change with the customer; if the customer consents, obtain written approval and audit the subcontractor as required. Unauthorised subcontracting may be a breach, and the customer may terminate and claim damages.

Who is liable if a subcontractor has a quality problem?

Externally, the contractor (manufacturer) is liable to the customer for the work result; the customer will not go directly to the subcontractor. Internally, the manufacturer can recover rework, sorting, line-stop, and customer claims from the subcontractor under the subcontract, with inspection records, notice, and causation evidence. Subcontracting does not exempt.

Do subcontractors need auditing?

Yes. Subcontractors are external providers and should be audited for qualifications, quality system, equipment/capacity, special processes, EHS, finance, and confidentiality; key/special processes need stricter checks. Customer-designated subcontractors must also be audited; designation does not remove the manufacturer's responsibility. Review performance regularly after admission.

How should drawings and programs be protected?

Sign an NDA first, defining permitted use, copying limits, personnel access, return/destruction, and liquidated damages; transmit through controlled channels (encryption/watermark/access), not personal chat apps or cloud drives; further subcontracting requires approval and a further NDA; on termination, recover documents, close accounts, and confirm destruction.

Should the website publish the subcontractor list?

Not advisable. Publish the mechanism ("process outsourcing/whole-machine OEM supported, main-work subcontracting requires customer consent, subcontractors managed as approved suppliers"); customer names, subcontractor lists, drawings, prices, and audit reports are confidential. Provide redacted materials through a controlled channel for customer audits.

One-sentence takeaway

A Changzhou manufacturer's subcontracting/outsourcing page should not say "stable outsourcing resources." It should turn outsourcing types and scope, customer approval, subcontractor audit, quality liability, confidentiality, delivery traceability, price and tooling, EHS/labour, change and exit, and public boundaries into a verifiable checklist—so a customer can confirm what is outsourced, whether it was approved, who is liable, and how it is traced.

Method and limitations

This is a review of public regulations and project practice, not procurement, quality, contract, or legal advice on any company's outsourcing, subcontracting, quality, confidentiality, or contracts. No undisclosed customer lists, subcontractor lists, drawings, or prices were used. Categories, checklists, processes, and the acceptance checklist are editorial suggestions, not procurement, quality, contract, or legal conclusions. Specific scope, subcontract approval, quality liability, confidentiality, and exit depend on the contract, technical agreement, customer requirements, and applicable law.

Sources and scope

Information is current to 2026-11-02. The following are public official/primary pages; their scope, version, and wording control.

  1. Civil Code of the PRC, Articles 772, 773, 780, and 781: Cyberspace Administration of China. The contractor should complete main work with its own equipment/technology/labour; main-work subcontracting requires client consent; auxiliary work may be subcontracted but the contractor remains liable for the result; delivery and acceptance; repair/rework/price reduction/damages for nonconforming work.
  2. Product Quality Law of the PRC (third amendment 29 December 2018), Article 26: Hami Municipal People's Government (NPC text reprint). The producer is responsible for the quality of its products; products must not present unreasonable danger, must have the required performance, and must conform to the stated standard or indicated quality.
  3. GB/T 19001-2016, Quality management systems—Requirements, clause 8.4 (control of externally provided processes, products, and services): National Standards Full-Text Public System. Evaluation, selection, performance monitoring, and re-evaluation of external providers, and control of externally provided processes.
About the author

Lingyi Information Official (delivery team) supports requirements, proposals, and acceptance for enterprise websites, brand and brochure design, smart manufacturing, and AI projects. This article is public research and project practice, not procurement, quality, contract, or legal advice; specific projects follow the contract, technical agreement, and customer requirements.

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