A contract is an agreement between two parties. It is a good business practice to reduce the agreement to writing. At the very least, the contract should contain these essential elements:
- the responsibilities of each party, in clear detail
- the period of time the contract is to be in effect
- the amount of payment
- the terms of payment
Some thought should be given to whether any liability issues need to be added. In preparing grant contracts, special consideration should be given to clauses which protect intellectual property.
The University cannot agree to any indemnity clauses. As an entity of the state, indemnification is prohibited by law. Additionally, consideration should be given as to whether the other party should provide insurance coverage.
The steps for approval of contracts by the University are as follows:
- Grant contracts should be referred to the Office of Research and Sponsored Programs (ORSP) for review
- Final review by the General CounselReview and Approval by the Vice President
- Review and Approval by the President
- The contract is then routed to ORSP (if grant-related) or Procurement and Property Services before being forwarded to the originating department.
Contracts may require approval by the Board (as specified in Items Requiring Board of Regents Approval, Policy 1.4)
It is the responsibility of the originating department to maintain a fully executed copy of all contracts.