We buy a new machine and its installation in our production facility from an external company. The value of the machine is approximately EUR 50,000. The company comes to install the machine in our premises. Installation takes only two days. Do we have to perform checks concerning contractor’s obligations?

If the contractor buys a machine or equipment and its installation and if the installation work takes place in the contractor’s premises or worksite, the Act on the Contractor’s Obligations and Liability when Work is Contracted Out is, in principle, applied. If the value of the subcontract is at least EUR 9,000 (VAT 0%), the contractor must perform required checks.

When calculating the value of the contract, only the total value of the contract is taken into account, i.e. the costs of work are not separated. In the case of a subcontract, the number of working days is irrelevant for the purposes of the application. The limit value for the number of working days applies only to temporary agency work agreements.