1. October 25, 2005, Pathways to successful EU- research projects KoWikk@kowi.de Pathways to successful EU- research projects – workshop based on experience with project management in FP 6 Legal aspects - Experience and best practice Kathrin Kohs

2. October 25, 2005, Pathways to successful EU- research projects Overview Basic documents in FP 6Basic documents in FP 6 Different contractsDifferent contracts Why contract management in EU-Projects?Why contract management in EU-Projects? The Consortium Agreement/the main rulesThe Consortium Agreement/the main rules The Consortium Agreement/Trouble spots in Management/Pre-cautionsThe Consortium Agreement/Trouble spots in Management/Pre-cautions Advice for coordinators and partnersAdvice for coordinators and partners

3. October 25, 2005, Pathways to successful EU- research projects Basic documents in FP 6 Basic documents concerning the legal managementBasic documents concerning the legal management I. General information on FP 6 II.Core Contract + Annexes III. Rules of participation IV. Financial Guidelines V.Any update by the COM

4. October 25, 2005, Pathways to successful EU- research projects Different Contracts The Core ContractThe Core Contract - One single draft version for all projects, all instruments and all partners -Only signed by the Coordinator and the COM -Comes into force by signature of the COM The Letter of Intent (LoI, optional)The Letter of Intent (LoI, optional) -Optional -First considerations on partners, management and IPR-strategies

5. October 25, 2005, Pathways to successful EU- research projects Why contract management in EU-Projects? The European goal: To realize economic, scientific and political ideas for Europe -Connection between Science and Administration -Connection between public bodies/Industry/SME -Different point of views on economic interests / IPR -Big consortiums with unknown partners -Many unforeseen situations

6. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement The Consortium AgreementThe Consortium Agreement -Obligatory in IP and NoE -Rules for internal management of the project -Without the consent of the COM -To be concluded as early as possible -No unified single draft version yet -All draft versions have a similar structure -A chance to stipulate many details for the consortium

7. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement Points to considerPoints to consider -Management -Decision-making bodies -Ways to get in and out of the CA -Payments -Liability -IPR -Applicable law

8. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Management The management structure (optional)The management structure (optional) - General Assembly -Advisory Board -Steering Committee -Panels -Coordinator -Project Management Office -IPR- Council

9. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Management/Coordinator CoordinatorCoordinator - The single contact person between the consortium and the COM - Management und coordination - Administration and payments - Member of Project Coordination Committee - Leadership of Project Office - Responsible for the Project Controlling

10. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Management/Coordinator ObligationsObligations „..overall management, charring the Steering Committee and the Advisory Board, preparation of the meetings. Alert the Steering Committee, General Assembly and Commission in case of non-delivery and / or default, maintaining and keeping the financial accounts with respect to the payments of funds granted by the COM, naming a successor at kick-off-meeting in order to ensure a smooth course of the project in case a grave breach of the contract by the coordinator, …“ „He shall not be entitled to act or to make legal binding declarations on behalf of any other party“ „He has the right to retain any payment if a party is late in submitting or refuses to provide deliverables.“

11. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Communication Rules of communicationRules of communication -List of all e-mail-addresses / phone numbers -All e-mails should be sent in CC to the Management Unit -Build up a homepage including service-numbers -Put up deadlines for answering important e-mails / in order to come to important decisions

12. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Payments The rules of paymentsThe rules of payments " The Co-ordinator shall receive all payments made by the Commission. Except for the part of the advance payments withheld for the Common Liability Reserve (if any), the Co- ordinator will transfer, in accordance with the Contract and the budget allocation decided by the General Assembly, the appropriate sums to the respective Parties with minimum delay, but not later than thirty (30) calendar days from the receipt thereof from the Commission. The Co-ordinator shall notify each Party promptly of the date and amount transferred to its respective bank account, as listed in Annex C, and shall give the relevant references."

13. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Payments Option:Option: "The advance payments from the Commission shall be deposited into a separate account. The transfer to the individual Party will be made in half-yearly installments. The first installment will be transferred with minimum delay, but not later than thirty (30) calendar days from the receipt thereof from the Commission. The second and subsequent installments will be released by the Co- ordinator depending on the decision of the Project Co- ordination Committee about completion of work and/or timely submission of Project deliverables."

14. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Payments Option:Option: „The Coordinator may, however, withhold a sum of 10% of the financial contribution payable to each party until the party has performed all relevant work and submitted all applicable reports and deliverables concerning the payments in question.“

15. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Payments Option:Option: „In case a party has not provided the Coordinator with its deliverables in time or provided non-compliant deliverables, such party shall not receive its concerned contribution nor the following installment until it remedies such non-delivery. The General Assembly may decide on additional appropriate measures with respect to the concerned party.“

16. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Collective Responsibility Collective responsibility: Annex II,18 Basic Principle: "Should the contract be terminated or the participation of a contractor be terminated..., the consortium will reimburse the amount due to the Commission. The amount due to the Commission may not exceed the value of the contribution due to the consortium in accordance with Article 5.2. The amount to be recovered shall be allocated between the remaining contractors other than those referred to in paragraph 3 in accordance with their pro rata share in the overall project. Exception: "Paragraphs 1 and 2 do not apply where the defaulting contractor is a public body,.."

17. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/Collective Responsibility The Liability ReserveThe Liability Reserve 3 Steps: 1. The defaulting partner fulfils its obligations 2. Common Liability Reserve 3. All other partners  Public bodies are exempted from any obligation of a collective responsibility!  These rules are not applicable towards third parties!

18. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/IPR Definitions of Pre-existing Know-How and KnowledgeDefinitions of Pre-existing Know-How and Knowledge Obligations of each partnerObligations of each partner - to respect joint ownership - to respect the national law - to report any transfer of ownership / publication to the COM (not in FP7) and to the consortium - to report if there is no intention of protection Access RightsAccess Rights Exclusion of access rightsExclusion of access rights

19. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/IPR Access RightsAccess Rights -To Pre-existing Know-How and Knowledge - Royalty-free, unless otherwise agreed prior to sign the Core Contract (!) - To all partners Exclusion of access rightsExclusion of access rights - Negative list! (positive in FP7) - Before signing the Core Contract - Only specific Know-How can be excluded

20. October 25, 2005, Pathways to successful EU- research projects The system of access rights (EU-Commission) Access rights Pre-existing Know-How Access rights to Knowledge For carrying out the project Yes, if a participant needs them for carrying out his own work under the project Royalty-free unless otherwise agreed before signing the contract Royalty-free For use purposes (exploitation and further research) Yes, if a participant needs them for using his own knowledge on fair and reasonable conditions to be agreed Royalty-free unless otherwise agreed before signing the contract

21. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/main rules/IPR ConclusionConclusion IPR matters should be considered as early as possible !

22. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Problems and Solutions in IPR Partner refuses to provide access rights to Pre- existing Know-HowPartner refuses to provide access rights to Pre- existing Know-How Pre-caution: Find a clear and precise definition on pre-existing Know-How; early discussion on tasks, duties and consequences (nature of EU-projects!); agreements prior to any contract management with the COM

23. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions Failure of partner to deliverFailure of partner to deliver Pre-caution: Agree on a tight reporting periods, regular communication, exact definition of tasks Failure to supply regular reporting information on resources expendedFailure to supply regular reporting information on resources expended Pre-caution: Use simple tools, time sheets, communication rules

24. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions Project Officer keeps asking more and more detailed planning informationProject Officer keeps asking more and more detailed planning information Pre-caution: be liable! Additional work needs to be undertakenAdditional work needs to be undertaken Pre-caution: Agreement on task-changes, priorities, project objectives should be clear, risk management

25. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions Technical problems emerge which mean project cannot fulfill original objectivesTechnical problems emerge which mean project cannot fulfill original objectives Pre-caution: to consider the objectives, risk management / "plan B" for Annex I Partner wishes to withdrawPartner wishes to withdraw Pre-caution: Finding rules for the CA, replacements, new structure for work packages?

26. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions Project manager is delivering unsatisfactory service to the projectProject manager is delivering unsatisfactory service to the project Pre-caution: find exact definitions of all tasks, communication-network, share of work?, supporting teams for these situations

27. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions Insufficient Knowledge about FP 6Insufficient Knowledge about FP 6 Precaution: Get more information from the COM, KoWi, other project coordinators, experienced partners Waste of time in the early stage of the projectWaste of time in the early stage of the project Precaution: Early contact and cooperation to the administration

28. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Trouble spots in Management/Pre-cautions High costs of the project during the preparation periodHigh costs of the project during the preparation period Precaution: Support by your institution, the Bundesland or by industrial partners? Strong selection of all proposals by the COMStrong selection of all proposals by the COM Precaution: continuous update of your prospects of success in scientific and administrative matters of the project

29. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Advice for Coordinators Advice for CoordinatorsAdvice for Coordinators - Work with high transparency - Work with one single draft version - Mark all changes in your draft version - Early cooperation between scientists and administration - Cooperate with the partners - All signatures of the consortium agreement at the very latest during the kick-off-meeting

30. October 25, 2005, Pathways to successful EU- research projects The Consortium Agreement/Advice for Partners Advice for partnersAdvice for partners - Be aware of your specific position in the consortium - Always consider the Work Program - What are your IPR results? - Work with the coordinator - Your administration staff should speak English - Cooperate with other partners / scientists and the administration staff

31. October 25, 2005, Pathways to successful EU- research projects Thank you for your attention! Thank you for your attention! Get more information on www.kowi.de/rp/blick