Presentation on theme: "Bent Egebart - www.webjour.dk Collective responsibility We are looking at a project with several contractors."— Presentation transcript:
Bent Egebart - Collective responsibility We are looking at a project with several contractors
Bent Egebart - Overview All contracts with more than one contractor impose technical collective responsibility on the partners to carry out the work of the project. Most contracts impose financial collective responsibility (all actions except SME specific actions, fellowships and certain specific support actions) upon the contractors to make good the breach of a contractor if the others are not willing to complete the project and respect their contractual obligations. If a contractor breaches the contract and the consortium does not make good this breach, the Commission may, as a last resort and after having explored with the consortium all other viable solutions, hold participant liable for the defaulting contractor. Public bodies are exempt from financial collective responsibility.
Bent Egebart - cont., In cases of termination for breach of contractual obligations or irregularity, and where the contractor does not honour its obligation to reimburse any amount due to the Commission, the latter will impose the provisions of financial collective responsibility on the consortium. The consortium will be obliged to reimburse the amount due to the Commission. The financial collective responsibility does not apply to the liquidated damages that may be imposed by the Commission to one or more contractors, neither does it apply to any obligation to reimburse funds as the result of an audit.
Bent Egebart - Resume ● Technical collective responsibilities on all the partners to carry out the work of the project. ● Only for SME and in scecial cases no collectice finansial responsibility can be imposed ● If on contractor breach the contractual obligation, the others must make up the damage ● Reimbursement will be clamed of the breaching partner, only if he does not honuor the commission will call opon the other contracters
Bent Egebart - Sanctions and recoveries Any amount unduly paid by the Commission to a contractor has to be reimbursed to the Commission on the terms and date specified by it. In addition, in certain circumstances overclaims may be penalised by means of the imposition of liquidated damages. This means that the amount overclaimed must be reimbursed to the Commission and, in addition, a penalty amounting to a percentage of the overclaim must also be paid. Further, a contract can be terminated for reasons of irregularity or for violation of fundamental ethical principles.
Bent Egebart - Background ● The commission are serious, they want things to happen but ● The Project Manager have also got new tools to prevent problems
Bent Egebart - Recommedations ● Be serious, make jour the management of you organisation is involved and behind the project manager. ● EU will probably rather stop a project than go into reimburcement ● Your CA has to do the job in the end ● I have not head any cases where EU has taken step to regain money, except for fraud ● Several links to CA from my web site.