Contract signature
When EuropeAid selects successful applicants to assign them a contract of the basis of their application form, it proceeds as follows:
- it prepares 3 copies of the Standard Grant Contract and annexes and redacts the Special Conditions applying to the selected Action;
- it signs, dates and initials all pages of the Contracts/Special Conditions;
- it sends the three copies to the selected applicant who must countersign them within 30 days from receipt and return two originals to the Contracting Authority together with the eventual financial guarantee where requested.
Entry into force
The contract may take effect on one of the following dates:
- the day after the last of the two parties signs;
- the first day of the month following receipt of first instalment;
- a later date to be defined by the two parties;
- exceptionally a date prior to the signature of the Grant Contract (see box below).
Non-retroactivity
Grants may, as a rule, only cover costs incurred after the date on which the Grant Contract is signed. A grant may be awarded for an action which has already begun only where the applicant can demonstrate the need to start the action before the contract is signed. In such cases, expenditure incurred prior to the deadline for submitting proposals or, in the case of direct award, the date of submission of the grant application, and if applicable the date of signature of the relevant financing agreement, will not be eligible for financing. No grant may be awarded retroactively for actions already completed.
Grants may, as a rule, only cover costs incurred after the date on which the Grant Contract is signed. A grant may be awarded for an action which has already begun only where the applicant can demonstrate the need to start the action before the contract is signed. In such cases, expenditure incurred prior to the deadline for submitting proposals or, in the case of direct award, the date of submission of the grant application, and if applicable the date of signature of the relevant financing agreement, will not be eligible for financing. No grant may be awarded retroactively for actions already completed.
The standard grant contract
The Grant Contract takes the following form:
- endorsement letter signed by the Contracting Authority and addressed to the successful applicant (the leading organisation in case of a consortium/partnership): the letter specifies the number of the contract awarded and the address to which the Grant Beneficiary should return the two originals countersigned;
- the Contract itself, with an incipit introducing the two contractual parties;
- the Special and Specific Conditions to which the Grant Beneficiary should comply which define the implementation period of the action, the overall value of the action and the amount financed by the Contracting Authority, the amount of the first instalment and of the following tranches (“payment arrangements”) and the reporting rules, the contact addresses of the Contracting Authority and the Grant Beneficiary.
Sources and useful links: