In general:
You (Departments) are responsible for the life cycle of the contract, from negotiation through completion.
The Contract & Risk Management office and the Finance department are generally responsible for review of legal, insurance, risk and financial issues; signing contracts; and assisting with contract interpretation and dispute resolution.
Business contracts include any legally-binding commitment of the College to acquire or provide products or services or engage in other financial transactions. A document can be a contract regardless of the title: ¡°contract,¡± ¡°MOU¡±, ¡°letter agreement¡±, ¡°master agreement,¡± etc. A verbal commitment may also be a contract, but we want to have contract terms in writing.
Examples of types of business contracts include:
When in doubt about whether you are dealing with a contract, ask the Contract & Risk Management Director.
Some purchase orders and service orders are issued in connection with an existing contract or master agreement that has already been approved and signed by the College. If the vendor requires a signature, the Department can sign these forms.
Purchase orders and service orders that are not connected with an existing, approved contract create a new contractual obligation for the College, and therefore must be approved and signed by Finance. In some circumstances, the Vice President, Finance may authorize Departments to sign these orders.
Any contract may present legal, financial or other risks. Even seemingly straight-forward contracts have the potential to expose the College to unexpected obligations or conditions that could increase costs or expose the College to unacceptable liability. In addition, reviews frequently find mistakes or missing information. Finally, some contracts will need approvals by managers, officers or the Board. Therefore, all contracts are to be reviewed by the Contract & Risk Management Director and approved by Finance. (For more information, see Finance Policy No. 305).
The Board of Trustees requires that only certain College officers sign contracts on behalf of the college. Our process is that business contracts are to be signed only by the Vice President, Finance/Treasurer, the Assistant Treasurer, or others they have authorized to sign in writing.
If you want to get multiple bids for a large project, you should prepare an RFP that describes the project in detail and the general terms and conditions. An RFP form is available on this web page. Finance and Contract & Risk Management can assist with completing the RFP.
The contracting process can vary, but this is a typical way contracts are made is:
Once you have a final, signed contract you are generally responsible for managing the contract through completion. This includes:
Note: Notices of termination should be prepared by Finance, not the Departments.