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Full Economic Costing Policy

This section deals with the university's policy in relation to the costing of research projects.


One of the main functions of Research and Innovation Services is to advise members of academic staff on the costing of research activity using the appropriate indirect, estates, facility and technician rates which are calculated annually. This ensures that grant applications are costed at Full Economic Cost (fEC) using rates calculated through TRAC (Transparent Approach to Costing) which is the methodology accepted by Research Councils.

It is important that applicants should cost projects using the software costing tool, Proposal and Award Management (PAM), and should seek advice on this if needed from Research and Innovation Services at an early stage. All projects must be costed in this way regardless of whether the funder will pay the full cost. Understanding of the full cost of research is essential in order to set a price for the work and prior to starting negotiations with those sponsors, such as industry, who can apply discretion over whether to fund in full or not, in order to ensure that both the Academic Department and the University achieve the best possible financial support for the research to be undertaken. fEC is the required methodology across the HE sector and is designed to promote transparency, accountability and financial sustainability.

Please ensure your costing includes sufficient resources to complete the proposed work. In particular, it is important to include a prudent and fair estimate of academic and research staff time which can be devoted to the project. It is the responsibility of the Head of Department to ensure that all Research Grants and Contracts are costed in full. Grants which do not make full recovery of overhead costs may only be accepted with the authority of the Faculty Dean, and must be explicitly justified. Such decisions must be discussed fully with Research and Innovation Services to ensure that future applications to the same sponsor are not prejudiced.


If you have any questions, please contact us.

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