In most of the cases they do not participate, they simply make their resources available to a contractor, this is not a case of participation but only a question of eligibility of the cost of these resources
In exceptional cases: “participation” of members of entities (such as EEIG, SMEs Associations) :
their members can do some of the work on the project even though they are third parties
contractor and third parties must have a previous agreement, normally the constitution
the third parties, the agreement and the tasks must be identified in Annex I
Contractual link of all contractors with the Commission (Form A signed by authorised legal representative of the contractor identified in contract, if change form A accompanied by new CPF identifying the new legal representative or letter indicating that other person is also legal representative)
New Contract enters into force upon signature of coordinator and the Commission. Coordinator must ensure other contractors sign within delays (30/45/60 days)
New at the request of the coordinator, deemed to act on behalf of the consortium
New Tacit amendments with implicit agreement of the Commission within 6 weeks only for modification and evolution of the consortium and for technical reports
New in IP/NoE, enlargement of the consortium to new contractors and new activities may be foreseen. This enlargement follows a competitive call launched by the consortium with evaluation of proposals by external experts
Financing Grant for integration Grant to the budget Flat-rate Networks of excellence Integrated Projects Specific targeted research projects Specific research projects for SMEs Integrated initiatives relating to infrastructure Actions to promote human resources & mobility Coordination actions Specific support actions
New FCF (variant of FC): actual direct costs + flat rate for indirect costs (20% of total actual direct costs, except costs of subcontracts - all instruments)
AC: actual additional direct costs + flat rate for indirect costs (20% of total actual additional direct costs, except costs of subcontracts)
Financing: cost reporting models General Rule: a legal entity applies the same cost model in ALL contracts established under FP6 except may move from AC to FCF/FC or from FCF to FC (“one way ticket”)
Financing Type of activity Research and technological development (including innovation related activity) Demonstration Training Other specific support activities New Consortium Management : costs reimbursed up to 100% within the limit of 7% of Community contribution (AC contractors apply FCF)
Three kinds of receipts must be taken into consideration in order to avoid any possibility of profit:
Financial transfers or their equivalent to the contractor from third parties ;
Contributions in kind from third parties;
Income generated by the project.
In the first two cases (financial transfers or contributions in kind), these endowments are considered as receipts of the project if the third party has provided them specifically to be used in the project .
If, on the other hand, these endowments are at the discretion of the contractor they are not to be considered as receipts .
In the first two cases , where contributions from third parties are used for the project by the contractor, the latter is required to inform the third party of this use and in accordance with the national legislation or practice in force.
In the case of income generated by the project itself:
General rule: any income generated by the project itself, including the sale of assets bought for the project, are considered as income to the project (receipts)
Derogation: income generated by the use of the knowledge resulting from the project is not considered as a receipt
Initial pre-financing ( Pre-financing for each period and 6 month of next period)
Periodic payment (base on consumption of pre-financing)
Periodic pre-financing (based on the applicable periodicity)
The Community financial contribution is paid to the coordinator on behalf of the contractors: the consortium decides on the allocation of each tranche of its between the contractors (consortium agreement)
Payments and reporting schedule for a STREP, CA or SSA (example of a 3 year contract) Final activity report Reported costs + audit certificate (mandatory) Final payment Periodic activity report (mid-term review : optional) Reported costs + (audit certificate if required) Intermediate pre-financing and/or payment NB: impact on the total pre-financing Detailed work plan Initial advance 0 6 12 14 18 20 24 26 30 36 38 Months
Payments and reporting schedule for an IP (example of a 4 year contract) Activity report Reported costs Activity report Detailed work plan Reported costs Adjusted advance Activity report Detailed work plan Reported costs Adjusted advance Activity report Reported costs Detailed work plan Adjusted advance Detailed work plan Initial advance 0 6 12 18 24 30 36 42 48 Months