Subcontracting in Horizon 2020

Subcontracting means that action tasks specified in the Grant Agreement (GA) which are not carried out by the beneficiaries themselves are outsourced to external third parties.

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 (i.e. Costs of subcontracting are not taken into consideration when calculating the 25% indirect 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 and/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 by the EU Commission/Funding Agency.

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 etc.) specified in the GA.

It is not allowed to award subcontracts to project partners of the same action or to delegate the task of coordinator (see article 41.2 of the GA). Subcontracting to "affiliates" (parent, subsidiary, associated companies) is eligible only in exceptional cases.

 

More detailed information can be found ...

Contact

Mag. Martin Baumgartner
Mag. Martin Baumgartner
National Contact Point: Legal and financial matters
T +43 5 7755 4008
martin.baumgartner@ffg.at
Mag. Tamara-Katharina Mitiska
Mag. Tamara-Katharina Mitiska
Expert: Legal and financial matters
T +43 5 7755 4009
tamara-katharina.mitiska@ffg.at
Robert Worel
Robert Worel
Assistant
T +43 5 7755 4611
robert.worel@ffg.at