5 tips for a smooth negotiation of your Consortium Agreement

The moment the formal notification of approval of an EU-funded project arrives, Consortium members enjoy a well-deserved moment of euphoria. Then come the administrative and legal tasks related to preparing the project start, and they are suddenly overwhelmed.

This is the Grant Agreement Preparation (GAP) stage. The Grant Agreement must be prepared for signature, while proposal and budget are reviewed and adjusted under the direction of Project Officers.

In the case of multi-beneficiary projects, where project tasks are implemented jointly by a Consortium, the Coordinator and other participants must also start negotiating the Consortium Agreement (CA), the internal document regulating internal relations between them during the project lifetime.

The EC has specific templates for drafting the Consortium Agreement such as the popular DESCA model, and Horizon Europe guidelines provide further indications. Drafting and signing a well-structured CA is in the interest of all members of the Consortium, as it helps a smooth implementation of the project.

But there are issues in the CA that need to be treated with special care. While most of the provisions mirror the Grant Agreement articles already agreed by the Consortium members, some crucial topics can slow down and complicate the process of CA signature.

Such topics include the agreement about the distribution of grant payments from Coordinator to partners, the access rights to Background and project results, and the participation and responsibility of external entities to the Consortium.

Here are five tips to make the drafting and signing of the CA smoother and avoid unwanted delays:

1. Start the CA process well in advance!
   As soon as the approval notification arrives, the Coordinator should start working on the first draft of the CA and circulate it among partners without delay, as this process needs to run in parallel with the GAP.
2.  Establish a schedule and respect it
   Propose a clear schedule from the initial review of the first draft until the final signature and ensure all Consortium members are aligned and accept it.
3. As Coordinator, make sure any doubts are solved
   Unexperienced partners may have doubts on CA provisions that can be easily solved in one-to-one meetings with the Coordinator. Make sure to be available for them as simple questions do not always need to be discussed by the full Consortium.
4. Always check the Grant Agreement
   Always keep in mind that the Consortium Agreement provisions cannot contradict the Grant Agreement. Check all proposed CA provisions carefully to ensure they align with the GA.
5. Do not forget about third parties
   In case third parties such as affiliated entities are involved in your Consortium, do not forget to regulate their relationship with the Consortium members and their participation in the Consortium Agreement.

We hope these tips will help you sign the CA quickly and start the project full of energy! If you want to know more about it, please contact us at hello@getpolite.eu!