Procedure

1st Quarter Internal Cost Claim template for FC partners
(Download)

1st Quarter Internal Cost Claim template for AC and FCF partners
(Download)

FAQs on ICC

EGEE Cost Models under FP6

Eligible costs:

- personnel

- travel and subsistence

- durable equipment

 -subcontracting

- other costs

Third Party issues

Financial guidelines of the FP6

Internal Cost Claim Procedure

Example of Eligible Costs: Subcontracting

In what cases can a contractor subcontract?

Is a subcontractor considered as a participant?

Who pays the subcontractor?

Is the mandate of auditors subcontracting?

What is the reimbursement rate for subcontracts?

Is the cost of VAT levied on a subcontract in an FP6 project an eligible cost?

Does a subcontractor submit a signed Financial Statement (Form C)?

In what cases can a contractor subcontract?

Subcontracting is limited to specific cases.

A. Conditions related to activities subcontracted:

- Subcontracts may only cover the execution of a limited part of the project. Therefore, generally core elements of the project can not be subcontracted.

- Even though certain services may be performed by a subcontractor, the contractor maintains full responsibility for carrying out the project, retains the intellectual property generated, if any, and must ensure that certain  provisions of the model contract are reflected in the agreement with the subcontractor

B. Conditions placed upon the subcontractor:

-The subcontractor must be a legal entity.

- Subcontracting between contractors is not possible, except in very particular cases (it might be the case where a different independent department of one contractor, not involved in the project, has provided a service to another contractor). However, this should be avoided to the extent possible.

- Any subcontractor, whose costs will be claimed under the project, must be made to the [best bid based on price/quality] and in compliance with the national legislation of the contractor concerned.

Is a subcontractor considered a participant?

No

Who pays the subcontractor?

The subcontractor is not reimbursed by the Commission directly but by the contractor on the basis of the agreement concluded between the contractor and the subcontractor. Once the subcontractor is paid by the contractor, this contractor will be able to claim the reimbursement of that subcontracting expense to the Commission as a form of direct eligible cost.

Is the mandate of auditors a subcontract?

Yes, Audit Certificates are Subcontracts by nature and must be charged under the NA1 activity.

What is the reimbursement rate for subcontracts?

As direct eligible costs, the reimbursement rate of subcontracting cost will be the same as any other direct cost. Nevertheless, no indirect cost can be charged.

Ex: if the cost of the subcontract is 100, excluding VAT,

An AC partner is reimbursed max 100%, i.e. 100

A FC or FCF partner is reimbursed max 50%, i.e. 50

Is the cost of VAT levied on a subcontract in an FP6 project an eligible cost?

Eligible costs of subcontracting exclude VAT.

Does a subcontractor submit a signed Financial Statement (Form C)?

Subcontractors do not submit Financial Statements. However, the costs incurred by the contractor for subcontracting must be identified in the contractor’s Financial Statement. The contractor must ensure that its audit certificate also covers the eligible costs of the amount paid to the subcontractor.

For further details, please refer to the Financial guidelines