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FP7 Financial Info and FAQs --> Differences between FP6 and FP7 --> Contractual changes

The main change here is that "Contractors" are now termed "Beneficiaries" and the "Contract" is now termed "Grant Agreement".

1.       The notion of “collective financial responsibility” introduced in FP6 has been removed to lower the barriers to SME participation.

2.       The Agreement will come into force will start when the Coordinator and the Commission sign.

3.       Cost models have been eliminated. All participants will now use a modified FC model.

4.       IPR rules are more flexible

5.       Because of the new rules, SMEs who do not meet financial criteria may find it difficult to coordinate or be allocated more than 500,000 Euros

6.       Some of the subcontracting rules will be relaxed in FP7.


Basic structure of the Grant Agreement in FP7 is similar to FP6 Model Contract, but note Form E:

·         Core part - GA parameters

·         Annex I - DoW

·         Annex II - General Conditions

·         Annex III - Specific provisions for funding schemes (for SMEs)

·         Annex VII - Form D terms of reference for certification of costs and Form E for certification of the methodology (NEW)


However there are also several differences and improvements introduced for FP7:

Financial provisions

·         Payment modalities

·         Eligible costs

·         Indirect costs

·         Certificates

·         Third party contributions and sub-contracts

·         Upper funding limits

·         No financial collective responsibility

Other provisions

·         Reporting

·         Amendments

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