 Force majeure
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It is possible that an unforeseeable event occurs beyond the control of the Community or the contractors affecting the contract and the project. Such an event constitutes a force majeure. In a case of force majeure ocurring to the contractors or the Commission, notification will be given to either the Commission or the contractors.
If a contractor has been prevented from fulfilling its obligation to execute the project due to force majeure, it will not be considered in breach of this obligation. In such a case, remuneration for accepted eligible costs incurred may be made only for tasks which have actually been executed up to the date of the instance.
The project can be suspended or terminated due to force majeure.
Suspension and prolongation of the project
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In the case of a delay in the implementation of the project the consortium informs the Commission. The consortium can propose to suspend part or all of the project if force majeure or exceptional circumstances render its execution excessively difficult or uneconomic.
If the Commission considers that the consortium is not carrying out its work satisfactorily, it may suspend part or all of the work under the project, so as to re-negotiate the contract. The work or the project can begin again when both parties agree.
Both the Commission may terminate the contract and the consortium may request that the contract be terminated if it is established that it will be excessively difficult to continue with all or part of the project and/or that for technical, financial, economic or scientific reasons the delay or non-execution will be such that the project is no longer viable.
Cases of collective responsibility
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Collective responsibility is a mechanism by which a contractor may be held liable, technically and/or financially, fully or partially, for the action of another contractor. It is applied as a last resort in case that a breach of the contract by one or more contractors cannot be made good by other means.
Technical Collective Responsibility
Depending on the nature of the breach, the consortium will be invited to find
the appropriate solution. The technical implementation of the project
will be the collective responsibility of the contractors. If no
solution is found, the defaulting contractor is excluded and the
consortium is requested to continue the project.
Financial collective responsibility
Should the contract be terminated or the participation of a contractor be terminated, and any contractor does not reimburse amounts due to the Commission after fixing the accounts, the consortium will collectively be responsible for reimbursement.
The amount to be recovered shall be allocated between the remaining contractors in accordance with their pro rata share in the overall project. For each contractor, it will not exceed the total payment it is entitled to receive.
The above does not apply where the defaulting contractor is a public body, an international organisation or a contractor whose participation to the indirect action is guaranteed by a Member State or an Associated State.
International Organisations, public bodies or entities guaranteed by a Member State or an Associated State are solely responsible for their own debts and the financial collective responsibility is not applied.
Sanctions
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Sanctions are foreseen in cases of irregularities committed by a contractor (infringement of a provision of Community or national law or any breach of a contractual obligation).
In such cases the Commission can:
- exclude the contractor from the contract
- exclude the contractor from other FP6 contracts and from contracts under other Community policies
- declare the contractor ineligible to participate in future FP6 activities, and in programmes under other Community policies
- The Community, with the aim of protecting its financial interests, is entitled to claim liquidated damages from a contractor who is found to have overstated expenditure and who has consequently received an unjustified financial contribution from the Community
As established by the Financial Regulation, any contractor in breach
of its obligations shall be liable to financial penalties of between
2% and 10% of the value of the Community financial contribution
received. The rate may be increased in the event of a repeated breach.
 Reference documents and
sites:
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The
'FP6 step by step' section is a structured walk- through of what FP6
participation entails.
