1. Megan Richards 6FP - Contract 18 March 2003 Sixth Framework Programme CONTRACTS

2. Megan Richards 6FP - Contract 18 March 2003 Based on Rules for Participation and : Reduction in the number of contracts Collective approach Greater flexibility Greater autonomy for participants General Contractual Principles

3. Megan Richards 6FP - Contract 18 March 2003 Core contract standard text (completed with project data) Annex I the “project” (technical tasks - work to be carried out) Annex II general conditions (standard, applicable to every instrument) Annex III instrument specific provisions (variable per instrument) Contract Structure

4. Megan Richards 6FP - Contract 18 March 2003 Supplemented by supplementary information and guidance notes when necessary   Financial (including auditing, cost methodologies)   Negotiation (including technical annex)   Consortium agreement (including IPR)   Project management (including reporting) plus guidelines imposed by Rules for Participation   Guidelines on Evaluation and Selection procedures Guidelines

5. Megan Richards 6FP - Contract 18 March 2003 Regulates internal organisation and management of consortium (Commission is not a party) New - Compulsory unless exempted by the call for proposals Non binding guidelines provided by the Commission After or (preferably) before signing the contract - some decisions must be made by the participants before signature of contract (e.g. exclusion of pre-existing know-how) Consortium Agreement

6. Megan Richards 6FP - Contract 18 March 2003 Signature and entry into force: Contractual link of all contractors with the Commission (equal status) New - Contract enters into force upon signature of coordinator and Commission Coordinator must ensure other contractors sign within delays (established in contract) Distribution of advance to other contractors possible after minimum requirements met Project begins on date established in the contract Core contract

7. Megan Richards 6FP - Contract 18 March 2003 Contractors identified in contract Evolution of consortium possible where one or more does not sign Community financial contribution and total estimated costs Reporting and payment modalities Amendments - tacit for approval of technical reports and for consortium changes Special conditions

8. Megan Richards 6FP - Contract 18 March 2003  Performance obligations - consortium, contractors, coordinator, Commission  Force Majeure  Suspension and prolongation - clear provisions for possibility to suspend and prolong project  Termination - simple without fault or breach and with breach  Subcontracting - if in Annex I approved General Conditions

9. Megan Richards 6FP - Contract 18 March 2003 Technical Responsibility (applicable to all instruments) Financial Responsibility - New Used as a last resort Limited in proportion to the participant’s share to the project, up to the total amount they are entitled to receive Exceptions:   International Organisations, public bodies or entities guaranteed by MS/AS: solely responsible for their own debts   specific actions for SME’s and fellowships and, when duly justified, specific support actions Collective Responsibility of Contractors

10. Megan Richards 6FP - Contract 18 March 2003 New - Cost categories not required Costs must be : actual, economic and necessary for the project incurred during the duration of the project recorded in the accounts (or third parties) follow contractors own accounting rules and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit Audit certificates by external auditor for each partner, each year for IP/NoE for public bodies - competent public officer Costs

11. Megan Richards 6FP - Contract 18 March 2003 FC: actual direct and indirect costs contractors calculate indirect costs according to their own accounting rules New - FCF (variant of FC): actual direct costs + flat rate for indirect costs (20%) limited to SMEs and organisations eligible for AC AC: actual additional direct costs + flat rate for indirect costs (20%) optional for non-commercial or non-profit organisations, international organisations which cannot distinguish between direct and indirect costs - obligatory for physical persons Cost Reporting Models

12. Megan Richards 6FP - Contract 18 March 2003 Periodic advances (pre-financing) initial advance (pre-financing) upon signature by Commission and coordinator or when minimum number of contractors have acceded or when all contractors have signed yearly for IP and NoE (specified in the contract for other instruments) up to 85% (80% for instruments without collective liability)   EC contribution depends on : contractor’s cost model (AC, FC, FCF) type of activity (research, demonstration, management, training, etc) submission of audit certificate receipts Payments

13. Megan Richards 6FP - Contract 18 March 2003 INTEGRATED PROJECTS Reimbursement Rates

14. Megan Richards 6FP - Contract 18 March 2003 Maximum reimbursement rates, instruments, activities and cost models

15. Megan Richards 6FP - Contract 18 March 2003 Controls Reports Periodic activity reports (including plan for dissemination and use) Periodic financial reports Supplementary reports if foreseen (in Annex I or III) Final reports covering the whole project Audits Scientific, technological, and financial audits New - annual monitoring by Commission with external experts (particularly for IP and NoE) Ethical or other reviews Contractors right to refuse particular expert Audits and Controls

16. Megan Richards 6FP - Contract 18 March 2003 Financial irregularity is grounds for exclusion from evaluation or selection procedure Violation of fundamental ethical principles is grounds for exclusion from evaluation or selection procedure Recovery decisions (article 256 EC Treaty) Other sanctions in contract (liquidated damages for overclaims) Sanctions

17. Megan Richards 6FP - Contract 18 March 2003 Ownership Knowledge created under indirect actions = contractors Joint ownership where joint generation Any transfer of ownership must comply with contractual obligations (access rights, etc) Protection Knowledge capable of industrial or commercial application to be protected Commission may protect (where not envisaged by contractors) Owner of knowledge may publish as long as no impact on protection Prior notice of publication to Commission and other contractors Rules for Dissemination and Use

18. Megan Richards 6FP - Contract 18 March 2003 Use and Dissemination Contractors shall use their knowledge NEW - not all the knowledge from the project Dissemination required if not adversely affecting protection or use, Commission may disseminate if contractors do not Rules for Dissemination and Use

19. Megan Richards 6FP - Contract 18 March 2003 Access Rights Basic Principles Granted on request and may be conditioned by specific agreements regarding confidentiality and purpose Commission may object to grant of access to third party, particularly if not established in MS or AS NEW - Pre-existing know-how may be specifically excluded Rules for Dissemination and Use

20. Megan Richards 6FP - Contract 18 March 2003 Access Rights Access for Execution of Action Access granted to knowledge and pre-existing know-how when needed to carry out their own work on the project (royalty-free unless other terms agreed prior to contract signature) Rules for Dissemination and Use

21. Megan Richards 6FP - Contract 18 March 2003 Access Rights Access for Use Access granted to knowledge and pre-existing know-how when needed to use their own knowledge (royalty-free unless other terms agreed prior to contract signature) Access may be requested for 2 years after end of project or after termination of contractor’s participation Rules for Dissemination and Use

22. Megan Richards 6FP - Contract 18 March 2003 System of Access Rights Access rights to pre-existing know-how Access rights to knowledge If a participant needs them for carrying out its own work under the project For carrying out the project Royalty-free unless otherwise agreed before signing the contract Royalty-free If a participant needs them for using its own knowledge For use (exploitation + further research) Non-discriminatory conditions to be agreed Royalty-free unless otherwise agreed before contract’s signature Possibility to exclude specific pre- existing know-how before EC contract’s signature (or before entry of a new participant)

23. Megan Richards 6FP - Contract 18 March 2003 Contract, Consortium agreement checklist : http://europa.eu.int/comm/research/fp6/working - groups/model-contract/index_en.html Web site