Collective Responsibility Financial Glossary

What is it? This is a mechanism applied in FP6 contracts by which a contractor may be held liable, technically and/or financially, fully or partially, for the action of another contractor. It is a consequence of the principle of autonomy of the consortium, which can decide about the allocation of the grant and the tasks. It is applied as a last resort in the case of a breach of the contract by one or more participants. Financial liability of a participant is limited in proportion to the participants share of costs in the project, up to the total payment it is entitled to receive.

Finance Term Definition Added By: Caroline

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