Amendment procedures

✔ In case of changed circumstances, the Grant Contract may be amended: specific procedures apply, basing on the type of change occurred
✔ The amendment may not have the purpose or the effect of making changes that would call into question the grant award decision or be contrary to the equal treatment of applicants. The maximum grant may not be increased
✔ Unilateral modifications are allowed in case budget items are transferred within or among budget heading or new items are introduced, within 25% of the budget heading (amount originally approved or as modified by addendum). The amendment is communicated in writing to the Contracting Authority
✔ Amendments require the authorisation of the Contracting Authority when transfers of budget heading is more than 25% of the budget heading approved

The purpose of an amendment is to modify the contract in response to changed circumstances.
Substantial modifications to the contract must be made by means of an Addendum signed by the two contracting parties. Some smaller changes, such as change of address, change of bank account, or change of auditor may be made unilaterally and notified in writing without delay to the Contracting Authority.
Any change leading to the amendment of the Grant Contract must be requested in writing with a formal request. If requesting an amendment, the Grant Beneficiary must submit that request to the Contracting Authority at least one month before the date on which the amendment should enter into force, unless there are special circumstances duly substantiated by the beneficiary and accepted by Contracting Authority. Contracts can be modified only within their execution period and the maximum amount of the grant may not be increased(art.9-General Conditions).

UNILATERAL MODIFICATION

What is it?
A unilateral modification consists of a written communication from the Coordinator informing the Contracting Authority of changes that the Grant Beneficiary has introduced. The communication must be provided at the latest in the next report. The written communication commits the Grant beneficiary to apply the change. Acceptance by the Contracting Authority is not requested in this case, and should not be expected; nevertheless it is important to duly justify the changes and archive the related correspondence. Further explanation on the changes should be provided with the interim/final narrative reports.

When do you have to use it?
In the following cases:

  • if the amendment does not affect the basic purpose(objectives,results,indicators,area of intervention and sustainability) of the Action;
  • if the financial impact is limited to a transfer between items within the same main budget heading including cancellation or introduction of an item;
  • if a transfer between main budget headings involves a variation of 25% or less of the amount originally budgeted (or as modified by addendum).

This method may not be used to amend the budget headings for indirect costs, the contingency reserve, for in-kind contribution or rates of simplified costs, or for changes between budget headings that exceed the 25% threshold.

AMENDMENT THROUGH AN ADDENDUM TO THE GRANT CONTRACT

What is it?
An addendum is a contractual document modifying the Grant Contract. It is prepared by the Contracting Authority (see template), following a duly justified request of modification by the Grant Beneficiary. In the proposed addendum, the Grant Beneficiary must make reference to articles and/or annexes of the Grant Contract to be modified. The Contracting Authority sends three signed originals of the addendum to the Grant Beneficiary, who must countersign them within 30 days of receipt and return two originals together with the financial guarantee where required.
The addendum takes effect on the date of the later signature, unless otherwise agreed by the contractual parties.

WHEN DO YOU HAVE TO USE IT?

An addendum may not have the purpose or the effect of making changes to the Grant Contract that would call into question the grant award decision or be contrary to the equal treatment of applicants. The maximum amount of the grant referred to in Article 3.2 of the Special Conditions may not be increased.
This method should be used for extension of the implementation period or financial modification between budget headings that exceed the 25% threshold. Any addendum modifying the budget must include a new one showing how the full budget breakdown of the initial contract has been modified. Therefore in this case the Grant Beneficiary must include the modified budget (Annex B of the Grant Application Form) in its request for modification.
For this purpose the Grant Beneficiary could use the format “addenda or use of contingencies” includes in the Financial Report(Annex VI).

Resources and useful links:
General Conditions(Annex II)
Special Conditions
Financial Report(Annex VI)


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