A subcontractor is called upon by a beneficiary to implement an action task and issues an invoice for the service provided (work or service, delivery of goods) at regular market prices.
No indirect costs for the beneficiary are added to subcontracting costs. In contrast, the costs for “other goods and services” are also contracts for work or services or delivery of goods, but are not related to action tasks. Subcontracts must always be awarded on the basis of best value for money or lowest price.
Another eligibility requirement is that the subcontract has been agreed and an appropriate budget allocated in the Grant Agreement. If this is not the case the beneficiary bears the risk of ex-post recognition of costs. The beneficiary who has awarded the subcontract is responsible for the work of the subcontractor (quality of work, timely completion etc.)
It must be contractually agreed that the intellectual property created by the subcontractor is transferred to the beneficiary so that he/she can fulfil his/her obligations (granting of access rights …) specified in the Grant Agreement.
It is not allowed to award subcontracts to project partners of the same action or to delegate the task of coordinator (see Art. 41.2 of the Grant Agreement). Subcontracting to affiliates (parent, subsidiary, associated companies) is eligible only in exceptional cases.
More detailed information about subcontracting can be found in the Annotated Grant Agreement (AGA), Article 13 and Article 8 (overview of third parties and differentiation).
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