FAQs for the Contract Process

1. When is a contract required and how do I determine the appropriate contract to use?

2. How do I determine if competitive bidding or RFP is required?

3. Is use of a vendor's contract acceptable?

4. What is a CAP Form?

5. Who should sign the contract first?

6. Is an original signature from both the vendor and University necessary on the contract?

7. When is a contract considered fully executed, and can a project proceed when a contract is partially executed?

8. What is the required process for creating a contract?

9. What is the typical time frame and turnaround for a contract to be processed? How can I track the status of my contract?

10. When is a Certificate of Insurance required and who obtains it?

11. Where do I obtain forms for Bids, RFPs, Contracts?

12. Why do I need to complete a purchase requisition with the contract packet?

13. Will I receive a copy of the Purchase Order when a contract is used?

14. Where will the original contract be housed?

15. Where can I obtain information regarding changes to the Procurement and Sourcing Services website?

The type of goods or services being acquired is the basis for determining whether a contract is required and which document to use. The University has in place a number of contract templates for use in a variety of situations, each of which safeguard University interests by setting forth the terms and conditions of the engagement. Whatever the format, the agreement must comply with University contracting requirements.

• Artist engagements between $1,000.00 – $5,000.00 require an Artist Contract.
• All purchases for services over $5,000 must be submitted on a purchase order requisition with three written competitive quotes.
• A Professional Services Agreement is required for maintenance agreements or professional services over $5,000. If goods, equipment or other materials are supplied in that context, use the Agreement for Products and Services.
• Construction projects from $5,000 to $25,000 must be submitted on a purchase order requisition with three written competitive quotes.
• Construction projects between $25,000 and $50,000 must be submitted on a purchase order requisition with three written competitive quotes and require a University Construction Services Contract.
• All purchases of goods or services in excess of $50,000 are subject to a formal bidding process facilitated by Procurement and Sourcing Services.

Please refer to the F1313 Bid Matrix and Contract Guide.

The use of vendor contracts is not recommended, as these documents avoid providing any warranties or quality assurances, and tend to inappropriately shift liability and risk to the University. If a vendor insists on supplying its contract, please advise the company that University counsel must review and approve all terms, which will likely result in changes.

This form will assist in ensuring that (i) all relevant and necessary contract provisions have been incorporated into the draft document and (ii) the contract has been reviewed by the appropriate individuals. The parties typically responsible for signing this document are (i) Requesting Party, (ii) University Counsel, (iii) Dean/Director, (iv) VP/Provost, (v) President, (vi) Associate VP/Budgets, and (vii) VP for Finance/Treasurer.

The vendor is required to sign the contract first. If using a vendor's contract instead of a University template, LIU Legal must review the contract before any signatures are obtained, as frequently changes will have to be made. The requesting department/division is then responsible for obtaining the vendor's signature before routing the contract back for the University signature. A contract is not considered fully executed until LIU countersigns two vendor-signed originals.

Yes. In rare or unusual situations, a facsimile or scanned vendor signature may be accepted for LIU to countersign if the contract has been amended by the vendor to contain the following language:

"If any signature is delivered by facsimile or by scanned and emailed .pdf data file, that signature shall create a valid and binding obligation on the part of the party signing in this fashion and shall have the same force and effect as if such facsimile or ".pdf" signature page were an original thereof."

A contract is considered fully executed only when it has been reviewed and signed by all necessary parties, has a completed CAP Form, Certificate of Insurance, and competitive bids, sole source justification, bid waiver form, etc… All agreements, whether a University contract or not, must be signed by an authorized representative of the vendor, certificates of insurance produced and agreement reviewed and formally approved by the appropriate University officials BEFORE any work, the delivery of goods or services, or the usage of any University facilities may commence.

Generally a quote or proposal is requested based on the department or division's stated needs.

If an LIU Contract is used and signed by the vendor, without edits, the turnaround time is quick. The time frame may vary if negotiations take place or if the vendor's contract is used and changes are required by the University. LIU does not presently have mechanisms in place to facilitate online tracking of the approval process. Our long-term objective is to incorporate and automate contract management and tracking in the PeopleSoft system. For the time being tracking occurs manually. Please contact the Contract Administrator at ext. 2556 for assistance.

Suppliers that perform services for the University, authorized by a purchase order or a contract, are required to supply proof of insurance coverage based on the activities performed and the amount of risk potentially assumed by the University. Proof of insurance is generally in the form of a certificate of insurance with LIU named as "Additional Insured". The amounts of coverage required are specified on the insurance rider attached to the University Purchase Order or in the body of the Contract. The initiating department should request a valid Certificate of Insurance naming LIU as "Additional Insured" and "Certificate Holder".

All forms can be obtained through the Procurement and Sourcing Services website.

Before any expenditure is made, funding must be identified and encumbered for the project. The purchase requisition form indicates the budget chartfield to be charged and contains the necessary authorizations for processing. This document also provides the approvals necessary for funds to be encumbered and expended.

No. The contract will contain all the terms and conditions applicable to the purchase of goods or services in question. The Contract Administrator will process an internal Purchase Order in order to encumber the funds indicated within the contract and on the requisition. A cover letter, indicating the PO number/Project number, with a copy of the contract will be mailed to the vendor and emailed to the department.

Presently original contracts are housed in the Office of VP for Finance and Treasurer. Effective February 1, 2012, all contracts will be housed In Procurement and Sourcing Services.

Updates to the Procurement and Sourcing Services website will occur on a periodic and as needed basis. The University Community will be informed of website updates via email.