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Contracts/Leases

CONTRACTS

 

The Assistant to the Vice Chancellor for Administrative Services is responsible for campus review of all contracts with the following exceptions:

 

• Contracts related to the application for or awarding of a grant are handled in the Office of Research Services Contracts related to gifts are handled in University Advancement Contracts related to construction projects are handled in Campus Facilities Management and Procurement
• Contracts related to the purchase of tangible goods are handled in Procurement

 

The Assistant to the Vice Chancellor for Administrative Services acts as campus liaison to the UM General Counsel's Office with respect to contract review and approval. If, in the opinion of the Assistant to the Vice Chancellor for Administrative Services, a contract needs to be reviewed by the General Counsel prior to execution, the Assistant to the Vice Chancellor for Administrative Services handles the transmittal of the contract to the General Counsel's Office and coordinates any questions with the originating department. In addition, Administrative Services acts as the central contract archive for the campus with respect to the contract it handles.

 

Signature authority on contracts is reserved for the Chancellor, or those to whom the Chancellor has specifically delegated that authority (Collected Rules and Regulations 70.010). For contracts handled through Business Services (see exceptions above), that delegation of authority has been extended to the Vice Chancellor for Administrative Services, and in most cases, to the Assistant to the Vice Chancellor for Administrative Services. Any other signature may be held to be invalid, unless a specific delegation of signature authority has been received from the Chancellor, in writing. Accordingly, departmental representatives should NEVER sign contracts without first checking with the Assistant to the Vice Chancellor for Administrative Services.

 

Standard Form Agreements

 

Standard form contracts offer department representatives the opportunity to complete a contract by “filling in the blanks”. The three primary standard forms are:

 

• Appearance Agreement

 

This form is used for a very short-term (one or two day) appearance for the purposes of giving a lecture, presenting a seminar, facilitating a meeting, etc.

 

• Performance Agreement

 

This form is used for musical, theatrical or other artistic performances.

 

• Consulting Agreement

 

This form is used for personal services contracts of a longer duration. The procedures for completing a consulting agreement are spelled out on the Consulting Agreement Procedures Sheet . An integral part of any consulting agreement with an individual , as opposed to a company, is the Independent Contractor Classification Checklist . The person responsible for hiring the consultant must complete this checklist and submit it along with the agreement. Be sure to fully read the instructions and accurately complete the checklist. The checklist is designed to assist in the determination that the consultant is, in fact, an independent contractor and not someone who should be placed on the University payroll due to the nature or duration of the work being performed.

 

Special care should be taken when evaluating whether or not a present or former employee of the University should be hired as an independent contractor.

Present and recent former University employees should usually be paid as employees. According to IRS guidelines, a continuing relationship is one indication of an employee/employer relationship. In addition, any employment of present and former University employees as independent contractors should be evaluated carefully for other indications of employee status. In this situation, employee status might be required due to:

The worker was previously paid as an employee to perform essentially the same type of work.

The University pays other workers on an employee basis to perform similar tasks.

 

Standard forms should be completed in full (with as much specificity as possible), printed out in triplicate, and signed by the other party first. All three copies should then be sent to the Assistant to the Vice Chancellor for Administrative Services for execution on behalf of the University. Administrative Services will retain one copy and return two to the department, one for the other party and one for departmental records. When processing a payment, attach a photocopy of the fully-signed agreement to the Non-PO voucher before sending it on to Financial Services. Effective December 19, 2005, contracts for services costing $500 or less do not require a formal signed agreement and may be handled within the department on the basis of a letter agreement, honorarium agreement or e-mail exchange with the other party. Financial Services does not require backup documentation for such a transaction . However, the purpose of the payment, including pertinent details such as dates of service, etc., should be clearly spelled out on the face of the voucher.

 

Any questions about the creation, review or processing of contracts should be directed to Administrative Services (235-1430).

 

Common Contract Errors

 

The following are the most common errors made in drafting and processing contracts.

 

• Ex post facto contracts : “Ex post facto” means “after the fact”. All contracts should be prepared, reviewed and executed BEFORE the work is commenced or the event occurs.
• Lack of specificity : It is imperative to completely describe the work to be done. This allows for much easier resolution of any disputes and provides a basis for evaluation of the quality of services provided.
• Failure to attach needed backup :   If supporting documentation is needed or referenced (classification checklist, vita, exhibits or addendums), make sure it is attached to the contracts when submitted.
• Signatures on the wrong line : Make sure that the other party knows where to sign.
• Failure to have PI sign on a consulting agreement to be paid from grant funds : The principal investigator (PI) of the grant should sign where indicated on any consulting agreement where the consultant is being paid from grant funds. By signing, the PI verifies that the expenditures is in accordance with the terms of the grant.
• Failure to have sufficient number of copies signed : At least two, and preferably three, originals should be signed by the other party and submitted to Business Services for processing. Business Services will retain one original and return two to the department (one for departmental records and one to be given to the other party).

 

LEASES/FACILITIES USE AGREEMENTS

 

All leases of real property are handled through Administrative Services. Leases will need to be reviewed and approved by the UM General Counsel, and, in certain cases, submitted to the Board of Curators for ratification. In addition, short-term use agreements, such as hotel contracts, facilities use licenses, etc., should be directed to Administrative Services for review and execution. As with contracts, signature authority rests only with the Chancellor or those to whom the Chancellor has specifically delegated signature authority.

 

Upon notification by Room Scheduling, Administrative Services also prepares Facilities Use Agreements with outside entities seeking to use UMKC facilities (other than the University Center ) for their events.

 

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