Q: Can tasks be sub-contracted?

A: As a general rule contractors must have the capacity to carry out the work themselves. Subcontracting is derogation to this general rule and is limited to specific cases. Beneficiaries may subcontract minor services and supplies, which do not represent core elements of the project work, which cannot be directly assumed by them and where this proves necessary for the performance of their work under the project.

Conditions related to activities subcontracted:
- Subcontracts may only cover the execution of a limited part of the project (Article II.7 of Annex II of the FP7 model contract). Therefore, generally core elements of the project can not be subcontracted.

- Coordination tasks of the coordinator such as the distribution of funds, the review of reports and others tasks mentioned under Article II.2.3 to GA cannot be subcontracted.

- Article II.7 of the FP7 model contract stipulates that: “recourse to the award of subcontracts must be duly justified in Annex I having regard to the nature of the project and what is necessary for its implementation”.

- Even though certain services may be performed by a subcontractor, the contractor keeps full responsibility for carrying out the project, retains the intellectual property generated, if any, and must ensure that certain of provisions of the model contract are reflected in the agreement with the subcontractor. (Article II.7 of the FP7 model contract).

For more information on subcontracting please consult: Model Contract, Annex II: http://cordis.europa.eu/fp7/calls-grant-agreement_en.html
Guide to financial issues relating to FP 7 indirect actions: ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf