Costs for management of the consortium shall be reimbursed up to 100% of the incurred eligible costs. But what constitutes management costs? There are two categories:

1.       The following costs must be included here.

·         Certificate on financial statement (Audit certificate) costs (but without overhead as it is technically viewed as a subcontract)

·         For large collaborative projects and NoEs, the costs of implementing competitive calls by the consortium (Publication and Evaluation) to find new members (if required)

2. The following may be included in the consortium management cost activity

·         Updating and managing the consortium agreement (incurred after project start only)

·         Managing at a consortium and participant level of the technical activities of the project

·         Overall legal, contractual, ethical, financial and administrative management of the consortium

·         Co-ordination at consortium level of knowledge management and other innovation related activities

·         Overseeing promotion of gender equality in the project

·         Overseeing science and society issues related to the research activities

The first category above takes precedence over the second within the permitted funding levels. Overheads can be added to management costs except for subcontracts, third party costs and audit certificates (regarded as subcontracts) and other direct costs, where the overheads have been calculated as a percentage of salaries. Generally consultants should be partners, not subcontractors.

The consortium management costs will not be limited to 7% as per FP6. However, the ceiling level will be subject to contract negotiations - very strong justification will be required for levels higher than 7%.