Dealing with changes

During the implementation phase unexpected circumstances may call for variations of the initial conditions under which the contract was undersigned and the project proposal validated. This means that contracts may need to be modified during their duration if the circumstances affecting project implementation have changed since the initial contract was signed.

Modifications to the contract must be made by means of an Addendum to the Grant Contract. Such Addendum must be signed by both contracting parties.

The EC sets general conditions regarding modifications, which should apply for all types of contracts:

  • The modifications must not have the purpose or the effect of making such changes to the contract that would call into question the grant award decision or may alter the award conditions prevailing at the time the contract was awarded.
  • The maximum amount of the grant cannot be increased in any circumstances.
  • A request for contract modifications is not automatically accepted by the EC. There must be justified reasons for modifying a contract. The EC must examine the reasons given and reject requests which have little or no substantiation.
  • Contracts can only be modified within the execution period of the Action. The purpose of the Addendum must be closely connected with the nature of the project covered by the initial contract.
  • Requests for contract modifications must be made well in advance (at least one month before the entry into force of the amendment) to allow for the Addendum to be signed by both parties before the expiry of the execution period of the contract.

To the extent that EU or EDF financing is sought, any modification extending the period of implementation must be such that implementation and final payments can be completed before the expiry of the Financing Agreement under which the initial contract was financed.

Resources and useful links:
PRAG website
General Conditions(Annex II)