University employees are expected to transact all University business in conformance with policies and procedures and accordingly have an obligation to become familiar with those that bear on their areas of responsibility. Each member is expected to seek clarification on a policy or other University directive he or she finds to be unclear, outdated or at odds with University objectives. It is not acceptable to ignore or disobey policies if one is not in agreement with them, or to avoid compliance by deliberately seeking loopholes. (University of California, Statement of Ethical Values May 2005)
In order to provide responsive service to the Business Contracts customers, it is important that these customers understand the overall contracting process and include sufficient lead time in their requests to allow Business Contracts to complete its responsibilities. Complex contracts may affect more than one department, pose significant financial risk and/or liability to the campus, do not conform to approved legal form, have campus wide-significance, or in some other way deviate from the standard contracting procedure, will require departmental collaboration and appropriate business and policy review. The following information is to assist departments in formulating an effective contract planning strategy.
The roles and responsibilities of the various parties involved in the contracting process are defined to ensure the following basic functions are accomplished:
- Assessment of any potential financial risk and/or liability to the campus
- Preparation of the contract document
- Appropriate review of documents for compliance with University policies
- Negotiation with the contracting party
- Approval by General Counsel if required
- Secure authorized signatures
Departments are responsible for providing assistance and their participation in the contracting process may vary significantly depending on the nature of the contract. Requesting Department is responsible for:
- Informally negotiate the “business arrangement” with the other party to determine:
- Nature of the work
- Where and when work is to be performed
- What University resources may be required, if any
- Whether other party provides a written agreement or purchase order
- Forwarding agreements from non-University entities from the private or public sector to Business Contracts to determine if the agreement is acceptable or if the agreement can be accepted with modifications or if an entirely new agreement needs to be created
- Send all attachments to the agreement, along with a detailed scope of work to Business Contracts
- Ensure that all terms and conditions of a business agreement are carried out. (e.g. payment of services, submission of invoices, preparation of reports, and compliance with schedules, etc.)
Business Contracts provides administrative expertise to campus departments and research units for unique sales and service contracts related to approved University programs and activities to ensure compliance with the Bylaws and Standing Orders of The Regents and other University policies.
Additional responsibilities include:
- Review the contract to ensure it is complete and accurate in content, clear and logical in organization, and consistent with applicable standards
- Identify potential problems and provide alternative solutions in structuring the contract to avoid unnecessary costs should a dispute arise in the course of the contractual relationship
- Interpret policies related to business contracts and provide advice to campus departments and other entities on unresolved issues
- Protect the interests of the University during the course of the sales and service activity
- Collaborate with other campus departments to facilitate the development and administration of procedures or protocols in relation to the contract on safety issues and policy & procedure issues
- Discuss problems, revisions, or the need for additional information with the requesting department/program
- Negotiate legal and policy matters with other party when necessary
- Obtain approval from General Counsel, if required
- Secure signatures of all parties
- Return executed agreements to the department