WRITTEN QUESTION P-1433/01

by Karl von Wogau (PPE-DE) to the Commission

(11 May 2001)

Subject: Variations in the conversion of amounts in DEM to Euros

Under the German Verdingungsordung für Bauleistungen (VOB) (Order on the award of building contracts) a contract between a principal and a contractor (tradesman, building firm) is based on unit prices set out in the tender specification. The basis for remuneration is the unit price, which is multiplied by the number of units actually constructed. There may be differences between individual totals in the final calculation. In such cases the question arises of the legal basis to be applied.

For example the following situation arises in a tender:

- Title: groundwork

1. Removal and piling up of topsoil - 250 000 m2 at DEM 7,97 m2 = DEM 1 992 550,00

2. Levelling the ground - 250 000 m2 at DEM 6,64 m2 = DEM 1 660 000,00

3. Spreading gravel - 250 000 m2 at DEM 19,04 m2 = DEM 4 760 000,00

Total DEM 8 412 500,00 = 4 301 242,90

- Title: groundwork

1. Removal and piling up of topsoil - 250 000 m2 at 4,07 m2 = 1 017 500,00

2. Levelling the ground - 250 000 m2 at 3,39 m2 = 847 500,00

3. Spreading gravel - 250 000 m2 at 9,73 m2 = 2 432 500,00

Total 4 297 500,00

- Difference 3 742,90

Is the Commission aware that these differences can arise and which legal basis should apply in such cases? If the parties to the contract have not provided for any contractual solution, which is applicable, calculation by unit prices or a conversion of the overall amount?

Answer given by Mr Solbes Mira on behalf of the Commission

(14 June 2001)

As regards rounding of currency amounts, Community legislation is laid down in Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro(1), especially in Articles 4 and 5). These provisions solely establish a minimum standard of accuracy as to guarantee a minimum of accuracy in conversion and rounding. The application of potential national rounding provisions or practices as to reach a higher degree of accuracy is not excluded by Community legislation, as far as it doesn't contravene the above mentioned Community legislation.

The problem of conversion of sums and products of monetary amounts is known to the Commission and dealt with in detail in Euro-Paper No 22 The introduction of the euro and the rounding of currency amounts(2) (especially sub 4.1.2.).

Accordingly, the appropriate solution for these problems depends on the circumstances of every case, especially on the interpretation of the underlying contract. In this context, it may be important whether the parties have agreed on a lead unit or whether the agreement of a lead unit can be deducted from the circumstances. It may also be important whether - according to the will of the parties - several transactions are to be considered as individual contracts with separate payment obligations or whether each individual position forms only part of an internal calculation of the final sum to be paid. In the first case individual amounts are to be converted and rounded while in the latter the finally invoiced amounts will be relevant.

In general, the accuracy of the calculation can be increased by using a greater number of decimals when converting so that no significant differences arise for the contracting parties as a result of the conversion.

(1) OJ L 162, 19.6.1997.

(2) http://europa.eu.int/comm/economy finance/document/europap/eup22de.htm.