Research Services


Overheads and FEC recovery

The financial viability of a research project is measured in two ways:

1) FEC Recovery Surplus / Deficit - this indicates how much of the cost is to be recovered from the Funder 

  • FEC Recovery = Cost to HEI  - Price to Funder 
  • FEC Recovery % = (Price to Funder / Cost to HEI)*100

2) Contribution to Overheads – this indicates the contribution by the Funder to non-direct costs

  • Contribution to Overheads = Price to Funder – Directly Incurred Costs
  • Contribution to Overheads % = (Price to Funder – Directly Incurred Costs) / Directly Incurred 

Projects not reaching minimum FEC Recovery and Contribution to Overheads levels are automatically escalated within Worktribe to Faculties for approval.  The escalation logic is summarised below:

Funder Type

FEC Recovery

Escalation Logic

Overhead Contribution

Escalation Logic

Industry, Commerce and Public CorporationsEscalated if recovery <100%Escalated if contribution < 30%
Research Councils, UK Government Bodies / Local Health & Hospital AuthoritiesEscalated if recovery <70%Escalated if contribution < 30%
Non EU Other and Other SourcesEscalated if recovery <100%Escalated if contribution < 15%
EU Government Bodies and EU OtherNo escalation logicEscalated if contribution < 15%
Charities (Open competitive process)No escalation logicNo escalation logic
Charities (Other)Always escalateNo escalation logic

For further information about FEC, please see the Costing Principles (FEC) page.