1. Contractual obligations
Yerevan, 2nd October 2013

2. Your contract outline (1)
Special conditions
Article 1 - Purpose
Article 2 - Implementation period of the Action
Article 3 - Financing the Action
Article 4 - Reporting and payment arrangements
Article 5 - Contact addresses
Article 6 - Annexes
Article 7 - Other specific conditions applying to the Action (supplements and derogations to the General Conditions)

3. Your contract outline (2)3
Your contract outline (2)
Annexes:
Annex I: Description of the Action (Grant Application Form)
Annex II: General Conditions applicable to European Union-financed grant contracts for external Actions
Annex III: Budget for the Action
Annex IV: Contract-award procedures …

4. Your contract outline (3)4
Your contract outline (3) …
Annex V: Standard request for payment and financial identification form
Annex VI: Model narrative and financial report
Annex VII: Model report of factual findings and terms of reference for an expenditure verification of an EU financed grant contract for external actions
Annex VIII: Model financial guarantee
Annex IX: Standard template for Transfer of Assets Ownership

5. Read first those 2 documents carefully!5
What comes first?
The provisions of the Special Conditions take precedence over ALL the Annexes
Annex II (General Conditions applicable to European Union-financed grant contracts for external Actions) takes precedence over the other annexes
Read first those 2 documents carefully!

6. Start of implementation
Distinguish between:
When the contract takes effect = date of last signature
When the Action starts = as specified in art. 2.2 of the special conditions:
The day following that on which the last of the two Parties signs OR
A later date as specified in the contract
Costs are eligible only after Action start date!
Procedures to award sub-contracts for goods or services may be initiated before, but sub-contracts may NOT be concluded by the Beneficiary or its partners before Action start date

7. Implementation period7
Implementation period
Distinguish between:
When the implementation period ends: XX months after Action start date (art. 2.3 Special conditions)
When the execution period of the contract ends:
When final payment is paid by JMA AND
In any case at the latest 18 months after the end of implementation period
Costs are eligible only during implementation period
Except costs relating to final reports, expenditure verification and evaluation of the Action

8. Implementation period: an example8
Implementation period: an example
Special Conditions Art. 2
2.1 This contract shall enter into force on the date when the last of the two Parties signs.
2.2 Implementation of the Action shall begin on: -the day following that on which the last of the two Parties signs (meaning 1st of June 2013)
2.3 The Action's implementation period, as laid down in Annex I, is 24 months
Contract signed by JMA and by Beneficiary on 26th of March 2013
Which is the project implementation period?
The first or last day of implementation period may be a non-working day.

9. Implementation period: extension?9
Implementation period: extension?
Beneficiary may request an extension of the Action's implementation period (Special Conditions art derogating from General Conditions art. 11.1)
In exceptional and justified cases
No later than two months before it ends
Request must be accompanied by all the supporting evidence needed for its appraisal. Final decision on such requests is a subject of approval by the Joint Monitoring Committee

10. 10
Financing the Action
Budget includes all eligible project costs, not just the ENPI CBC programme contribution
Double ceiling for JMA financing (art. 3.2 Special Conditions), examples:
Project budget
277,778 €
Project actual costs
(example 1)
321,436 €
(example 2)
242,371 €
Grant amount (90%)
250,000 €
Actual grant amount
218,134 €
(=242,371*90%)

11. Reporting on the Action11
Reporting on the Action
Progress reports
Interim report
Final report

12. Modifying the Action? General Conditions Art 9.1 derogated by 7.2.9 SC12
Modifying the Action?
General Conditions Art 9.1 derogated by SC
Any amendment to the contract, including the annexes, must be set out in writing in an addendum
Contract can be modified only during its execution period
Beneficiary must submit a request to the JMA two months before the date on which the amendment should enter into force, unless there are special circumstances duly substantiated by the Beneficiary and accepted by JMA
General Conditions Art 9.3
The maximum grant amount referred to in article 3.2. of Special Conditions may not be increased (nor amount or %!)

13. 13
Limited amendments
General Conditions Art. 9.2, derogated by art SC: Beneficiary may amend the budget and inform JMA in writing in 7 days:
When financial transfer between items within the same budget heading, including cancellation or introduction of an item
When financial transfer between budget headings involving a variation of 15% or less of the original amount (or as modified by addendum) in relation of each concerned headings