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FP6 Financial Info & FAQs --> Contract Negotiation --> CPFs - misc --> CPFs - Misc FAQs

Q:

We are in the negotiation phase for an SSA project where the rule is to use flat rate 20% for overheads. We just have been asked to provide the real overheads of each partner. We want to know if this is usual.

A:

Yes – this is normal practice. You have to put down the “actual charge” for the FC contractors using their correct overhead rate. However; the level of funding requested has to be capped at 20% overheads.

This is so that the Commission has a record of the “own contribution”.

In our experience, if the contractor is known to the Commission, the PO will tell you what overhead rate they have claimed before on other projects.



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