Art. 174. Subcontracting

1. Without prejudice to the provisions referred to in Article 30, to subcontracting in the matter of concessions the present article shall apply.

2. Economic operators shall indicate when submitting tenders the parts of the concession contract that they wish to subcontract to third parties. Are not considered to be third parties the undertakings that have grouped or have constituted consortia in order to obtain the concession, nor to affiliated undertakings; If the concessionaire has formed a project company pursuant to Article 184, are not considered to be third parties the partners, at the conditions referred to in paragraph 2 of Article 184. When presenting the tender, economic operators that are not micro-enterprises, SMEs, for the work, service and supply concessions for an amount equal or higher than the threshold referred to in Article 351),letter a), indicate three names of subcontractors in the following cases:

a) work, service and supply concessions for which no particular specialization is needed;

b) work, service and supply concessions for which it is possible to find on the market three names of subcontractors to indicate, given the significant number of economic operators performing such activities.

3. The tenderer shall be obliged to prove, in the cases referred to in para. 2, the absence of exclusion grounds for the subcontractors indicated and to replace the subcontractors for which a specific verification has demonstrated the existence of reason for exclusion referred to in Article 80

4. In the case of works concessions and in respect of services to be provided at the facility under the oversight of the contracting authority or entity, after the award of the concession and at the latest when the performance of the concession commences, the concessionaire indicates to the contracting authority or entity the name, contact details and legal representatives of its subcontractors, involved in such works or services, insofar as known at that point in time. The concessionaire notifies to the contracting station any changes to that information during the course of the concession as well as of the required information for any new subcontractors which it subsequently involves in such works or services.

5. The concessionaire remains exclusively liable towards the contracting entity. The concessionaire is obliged jointly with the subcontractor to the employees of the subcontracting company for the remuneration and contribution obligations provided for by the legislation in force.

6. The execution of the subcontracted performances shall not be the subject-matter of another subcontract.

7. Where the nature of the contract so permits, the contracting authority or entity shall directly proceed to the payment of subcontractors, always, in case of micro-enterprises, of small enterprises and, for others, in case of breaches by the contractor or in case of request by the subcontractor. The direct payment is however subject to the verification of the remuneratory and contributory regularity of the subcontractor. In case of direct payment the concessionaire is free from the joint obligation as referred to in paragraph 5.

8. Provisions in paragraphs 10, 11 and 17 of Article 105 shall also apply.