Full Cost with actual indirect costs (FC). In this model, eligible direct and indirect costs are charged by the contractors.
Full Cost with indirect Flat rate costs (FCF). In this model, eligible direct costs and a flat rate for indirect costs are charged by the contractors. This flat rate applied is 20% of all eligible direct costs minus the eligible direct costs of sub-contracts.
Additional Cost with indirect flat rate costs (AC).
In this model, eligible direct additional costs and a flat rate for indirect costs are charged by the contractors. The flat rate is equal to 20% of all eligible direct additional costs minus the eligible direct additional costs of sub-contracts.
Eligible costs must be:
- actual, economic and necessary for the implementation of the project
- determined in accordance with the usual accounting principles
- incurred during the duration of the project
- recorded in the accounts of the contractor
Non-eligible costs: indirect taxes (VAT or duties), interest owed, etc.
Direct eligible costs are all costs that fall under the definition of eligible costs which can be charged directly to the project, and are determined by the contractor in accordance with its usual accounting practices.
Indirect eligible costs are all eligible costs determined by the contractor, in accordance with its usual accounting practices, which are not directly attributable to the project but are incurred in direct relation to the direct eligible costs of the project.
You can see examples of elegible costs in the file attached.