1.2 What kind of budget changes can be submitted to the Contracting Authority?

According to the grant contract signed with the Contracting Authority (article 9 under General Conditions) there are two categories of changes in the budget of the action:

Non substantial changes (art. 9.2) for which a prior written agreement with the Contracting Authority is not needed, but the Beneficiary has to notify in writing the Contracting Authority at an early stage of planning of the changes.

If no negative comments from the Contracting Authority to the notification will be received within a reasonable time period the changes can be considered as agreed. Although financially the changes could be non substantial the justification of changes may be disputed by the Contracting Authority (e.g. increase of unit rates, no link to the agreed objectives etc.)

Substantial changes (art.9.1) for which there is a need of a prior written contract amendment by the Contracting Authority before the changes can be implemented by the Beneficiary.

The non substantial changes:

  • Budget variations between items within the same main heading (see below a list of typical main budget headings) with no limitations. It is also allowed to take out or add items within the same heading, according to the actual needs of the implementation of the action.

The main budget headings are typically:

  1. a) Human resources
  2. b) Travel
  3. c) Equipment and supplies
  4. d) Local office
  5. e) Other costs and services
  6. f) Contingency reserve
  7. g) Administrative costs
  • Budget variations between the main budget headings, but only if the new values of the main budget headings concerned will remain within 15% or less of the original value of the main budget headings (or the value of the main budget headings agreed with the latest contract addendum).
  • As an exception, any changes (less or above 15%) in the two main budget headings "Contingency reserve" and "Administrative costs" shall not be treated as non substantial changes.

The substantial changes:

  • When changes between the main compared to the initial amount (or as modified by an addendum) the changes are considered substantial and require a contract amendment. budget headings exceed 15%
  • Changes in "Contingency reserve" and "Administrative cost" shall always be treated as n substantial changes.

In practice, there are cases where a certain amount is taken from one main budget heading (less than 15% of its value), but it is transferred to another main budget heading where it induces a change higher than 15%. Such cases are not considered non substantial changes and are subject to amendment of the grant contract and should be approved by the Contracting Authority in writing.


This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Regional Development Agency West and can in no way be taken to reflect the views of the European Union Office in Kosovo .

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