What is the Grant Agreement in European projects?

Participating in an EU-funded project requires a thorough understanding of the Grant Agreement, a document that outlines the framework and conditions for project execution. This article provides an overview of the Grant Agreement, highlighting its significance and offering essential insights for managing it effectively, ensuring that you are well-prepared for successful project execution.

What is the Grant Agreement?

The Grant Agreement is a formal contract between the project consortium and the funding body, such as the European Commission, that specifies the terms and conditions of the grant received. This contract defines the terms and conditions of the grant received, including:

• The work you commit to carrying out, based on your initial proposal.
• The duration of the project.
• The budget.
• The EU financial contribution.
• The rights and obligations of all participants in the project, such as beneficiaries, their affiliated entities, associated partners, third parties providing in-kind contributions, subcontractors, and recipients of financial support to third parties.

Once your proposal is approved for EU funding, the Grant Agreement must be signed within three months of commencing the grant preparation phase. Each project is assigned a project officer from a relevant European Commission agency—such as the Climate, Infrastructure and Environment Executive Agency (CINEA) or the European Health and Digital Executive Agency (HaDEA). This officer will guide you through the project’s implementation, with the project coordinator serving as the primary contact.

Grant Agreement Preparation

Once your project has passed the evaluation phase, the European Commission will invite you to enter the Grant Agreement Preparation (GAP) process, which is crucial for ensuring that all aspects of the project are clearly defined and agreed upon.

Project partners provide a comprehensive description of the project, refining the plan to meet the funding body’s expectations. The project coordinator and the funding body may negotiate to clarify terms and make any necessary adjustments.

Additionally, this phase involves finalizing the project budget, including a detailed cost breakdown and justifications. Partners must also submit required legal and administrative documents to confirm eligibility and compliance with European legislation.

As Raquel Maeztu, leader of the European Project Management service at Zabala Innovation, underscores the importance of this phase: “The GAP phase is crucial for the successful subsequent implementation of the project. As well as clarifying the issues raised by the evaluators on technical aspects, the beneficiaries can re-check their budgets to ensure the fulfilment of the cost eligibility conditions and the alignment with the beneficiaries’ usual practices.”

Who signs the Grant Agreement?

The Grant Agreement is signed by the EU and the project Coordinator. The other Beneficiaries do not sign the Grant Agreement itself but join it through Accession Forms. Affiliated Entities or Associated Partners neither sign nor become formal parties to the Agreement.

Signing the Grant Agreement begins with the Commission sending notifications to the Project Coordinator about the necessary steps for grant preparation. Each beneficiary must submit a Declaration of Honour before the agreement can be signed.

Once all preliminary steps are completed, the Commission digitally seals the Grant Agreement to ensure its integrity. The project coordinator, or sole applicant, then signs the agreement electronically. After this, the Commission or relevant agency signs it electronically, making the grant effective. Finally, each beneficiary must electronically sign the Accession Forms to finalize their participation in the project.

What is the difference between the Grant Agreement and the Consortium Agreement?

The Grant Agreement outlines the rights and obligations related to the project between the beneficiaries and the European Commission. In contrast, the Consortium Agreement addresses the rights and obligations among the beneficiaries themselves. Nevertheless, the provisions of the Grant Agreement shall take precedence over any other agreement between the beneficiaries and the coordinating beneficiary.

The Consortium Agreement should detail the project’s management structure, decision-making processes, and budget distribution. It also addresses how EU payments are handled, outlines mutual liability, and provides mechanisms for conflict resolution. Additionally, it includes provisions for the admission of new participants and the management of Intellectual Property Rights.

Amendments to the Grant Agreement

Occasionally, amendments to the Grant Agreement may be necessary for the successful implementation of the project. Before initiating any amendment request, it is advisable to discuss potential changes with your project officer to ensure alignment and proper handling. If an amendment is needed, the project coordinator must submit a request for the amendment through the Funding & Tenders Portal’s grant management service. Both the project coordinator and the responsible agency will then need to sign the amendment electronically.

A thorough understanding of the Grant Agreement and effective communication with the European Commission are crucial for the success of European projects. By mastering these elements, you lay the foundation for effective EU project management and achieve successful outcomes.

If you need support with preparing the Grant Agreement, making modifications, or managing any other aspect of European projects, feel free to reach out to us. Our specialized European Project Management team is here to assist you.