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Still on subcontracting: 30% illegitimacy of performance limits and prohibition of further downturn over 20% (European Court of Justice, judgement of 27 November 2019 (C-402/18))

  • 09/12/2019

In its ruling of 27th November 2019 the European court of Justice interpreted the directive 2004/18/CE of the European Parliament and of the Council of March 31, 2004 concerning the coordination of the procedures for the award of public works contracts, supplies and services in the sense that it precludes national legislation which limits the portion of the contract that the bidder is authorized to subcontract to third parties to 30% and which limits the possibility of lowering the prices applicable to subcontracted services by more than 20% compared to the prices resulting from the award.

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