Horizon Europe: Tips for Managing Successful Lump Sum Projects
In 2021, the Horizon Europe programme succeeded Horizon 2020. It commenced with a budget of €95.5 billion to invest in innovative European projects that contribute towards a fair and prosperous future for people and planet. Our grant Project Managers share three practical tips to maximise your success of Horizon Europe lump sum projects.
Lump sum funding will expand to 50% of all Horizon Europe projects by 2027
Since 2023, Horizon Europe has significantly increased its use of lump sum funding, reducing the administrative burden for participants and shifting the focus towards the research and innovation content of the projects. Given its success and positive feedback, the European Commission aims to expand lump sum payment to 50% of all Horizon Europe projects by 2027.
Lump sum grants allocate a pre-fixed funding amount for each work package, which is paid out upon completion of the activities within the work package. Unlike traditional grants, which require detailed cost reporting and financial ex-post audits, lump sum projects simplify financial management. However, successful implementation requires proactive project management, early risk mitigation and clear reporting. By applying these strategies, participants can navigate the lump sum framework efficiently and maximise the success of their Horizon Europe projects.
It is important to know upfront that there is no change in terms of what are considered eligible costs for Horizon projects, in the specifications of the different cost categories (personnel, materials etc.) or the payment structure (upfront, interim, and final payment).
Our advice for implementing Horizon Europe lump sum projects
Based on our experience with writing lump sum funding applications, we have three key tips for you to tackle this new process in an efficient manner:
Tip #1: Carefully consider the work package structure and timelines
Within lump sum grants, the applicants will receive interim payments if a work package is completed in its entirety at the end of the respective reporting period. That means you have to carefully consider what a work package constitutes and how long it runs. If possible, you want to avoid large and expensive work packages running throughout the whole project because the payment of (parts of) those project costs will only be at the end of the project upon completion of the activities. For example, when running a large and costly clinical trial, it will be smart to divide the tasks into different smaller work packages to reduce the need for upfront investments by the partners. However, there is a balance to be struck as a high number of very small work packages will make the work plan look less cohesive and may reduce your evaluation score. Thus, our tip is not to overdo it. For example, for project management of a small project, it may be better to stick to a single work package.
Tip #2: Start early with the budget development
As ‘lump sum’ project applications require a more detailed specification of the project costs compared to ‘actual costs’ project applications, it is key to start working on the budget early in the process. After defining the work package structure and agreeing on the exact role and contribution of each partner to the work plan, it is important to start immediately with development of the budget. We advise starting with the budget at the latest 1.5 months before the deadline. Each partner will be required to complete a detailed budget excel file, which needs to detail all project costs per work package based on unit costs. This file needs to be submitted as an additional annex to the proposal. The table requires a high level of detail, and there are usually several iterations needed to align the budget between partners, affiliated partners when relevant, and across the work packages. Starting early is thus key to developing a solid budget that allows you to deliver the project goals.
Tip #3: Initiate amendments early when necessary
In the dynamic landscape of science and innovation, changes in project scope, timelines, or budget may arise during the implementation of lump sum projects. Budget transfers between work packages and beneficiaries require a formal amendment and can only be reflected in the grant agreement if the work packages concerned have not yet been completed (and declared in a financial statement). Additionally, any budget changes must be justified by the technical and scientific implementation of the project.
To manage amendments efficiently, it is crucial to identify necessary changes as early as possible and proactively engage with project officers. While lump sum grants remove the burden of detailed financial reporting, maintaining close financial oversight is essential to detect and address potential budgetary risks before they impact project execution.
Project Management Services
Interested in learning more about our Project Management service? Our Project Management team currently manages a portfolio of €300M+ in EU-funded research projects.
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Download our free Horizon Europe guide
There’s a lot to take into consideration when applying for Horizon Europe funding: budget, consortium partners, application processes, activities, and specific conditions. Our Horizon Europe Guide gives you insights on how to write an appealing proposal, gives all the success criteria and maximises your chances of getting funded.
Further reading on Horizon Europe & Lump sum funding
- Horizon Europe lump sum application advice
- Horizon Europe overview
- Horizon Europe Funding & Tenders portal
