Taking your words literally, it would not be subcontracting if it was allocating work to the a different part of the same legal entity ... it would legally being doing the work itself.
However, I think what you saying is there anything which stops it from letting a subcontract to different legal entity i.e. limited company, within the same parent company group.
All the requirements for subcontracting are in clause 26. Remember that under options C to E, there is also clause 26.4 which says that the pricing information has to be submitted as well. However, there is no reason within clause 26.4 for not accepting a Subcontractor because you believe the rates and percentages within the pricing information is too high.
But there is a reason for not accepting the subsequent 'higher than you think they should be' costs as Defined Cost in clause 52.1, second sentence. So if you have concerns, I would point out 26.4 now and if you think that pricing information is high, raise it (as an early warning) before they sign the subcontract.
However, I think what you saying is there anything which stops it from letting a subcontract to different legal entity i.e. limited company, within the same parent company group.
All the requirements for subcontracting are in clause 26. Remember that under options C to E, there is also clause 26.4 which says that the pricing information has to be submitted as well. However, there is no reason within clause 26.4 for not accepting a Subcontractor because you believe the rates and percentages within the pricing information is too high.
But there is a reason for not accepting the subsequent 'higher than you think they should be' costs as Defined Cost in clause 52.1, second sentence. So if you have concerns, I would point out 26.4 now and if you think that pricing information is high, raise it (as an early warning) before they sign the subcontract.