A:

Where there is a direct contract between “A” and “B” that involves provision of a service at a price (usually including profit and based on the required subcontracting provisions of the contract) this will be considered as a subcontract. Where B provides a contribution to A to perform work under the project based on a prior agreement and at cost (i.e. without profit) this could be considered to be the contribution of a third party resource. Such third party resources may be considered to be eligible costs of the project in certain circumstances.