3.34 STEP 2 What is the difference between subcontracting and sub-grants? Published 2012/01/26

Subcontracting is the possibility to externalise some services through a public procurement procedure based on the provisions set by Annex IV of the Grant Contract (for example to externalise the design of the website to a company or the external audit service for verification of expenditures). These costs must be indicated under budget line n. 6 of Annex III (Budget for the Project)in worksheet 1.
Sub-granting refers to the possibility to re-grant a portion of the project budget through a public procedure indicating the selection criteria that will be used to award the sub-grant. The maximum amount that can be awarded is 100.000 euro, taking into consideration that no sub-grantee can receive more than 10.000 euro. An example of sub-granting can be the need to implement pilot initiatives with local actors (e.g. students, farmers, SMEs, etc.).
Both the Applicant or partners may award the sub-grant provided that the overall amount cannot exceed 100.000 euro and according to the selection criteria described in the Full Application Form.