Contract Questions
- What is a Contract?
- When is a Contract Required?
- When Is Competitive Bidding Required?
- When Can I Use the Standard Addendum?
- Is Insurance Needed?
- Who Can Sign the Contract?
What is a Contract?
A "contract" is an agreement between two or more parties that creates obligations that are enforceable or otherwise recognized by law. This includes, but is not limited to any document that has terms and conditions, leases, letters of agreement, memoranda of understanding, letters of intent, and interagency or intra-system agreements.
When is a Contract Required?
A contract is required if the subject matter of the transaction involves:
- Human performance that renders a service on campus, or
- An off-campus event that requires facilities, catering or service specifically for UHD.
A contract is not required if the purchase:
- Is for commonly available goods, such as office supplies,
- Is for a nominal service such as a typewriter repair,
- Can be made through the Texas Comptroller of Public Accounts or DIRect (DIR). Note: Contact the Purchasing Department 713-221-8607 to determine the availability of this option.
When is Competitive Bidding Required?
Please see University of Houston System Purchasing Guidelines.
- Contact Purchasing at 713-221-8561 for assistance in the bidding process.
When Can I Use the Standard Addendum?
The Addendum Cannot Be Used For
- Goods, materials, and supplies normally procured by the Purchasing Department
- Agreements for "Consulting Services" (defined by state law as "the service of studying and/or advising a state agency under a contract that does not involve the traditional relationship of employer-employee")
- Revenue agreements
- Contracts requiring Board of Regents approval and/or signature by the UHS President/Chancellor
- Contracts pertaining to sponsored projects, programs, activities for research and/or intellectual property which are funded by grants or other external funding sources
- Non-standard Memoranda of Understanding, Letters of Intent, affiliation agreements, Interlocal agreements, and Interagency agreements
- Leases, easements, and other real estate matters
- Non-standard contracts with a clause that indicates the vendor's contract will supersede any Addendum
- Agreements otherwise not eligible for use with the Addendum pursuant to the UHD/UHS policies
Here is How the Standard Contract Addendum Can Be Used
- Outside of the restrictions listed above:
- If we are being asked to sign the vendor's contract (and the vendor is not a state agency), regardless of the dollar value of the contract, ask if he or she is willing to sign the Standard Contract Addendum. If "No", ask what language in the addendum is an issue and what can be done to resolve that issue. Some clauses can be revised to become acceptable to all parties executing the contract.
- If the vendor agrees to sign the Standard Contract Addendum:
- No OGC review is required if:
- The contract is for services,
- The contract is valued at less than $50,000,
- The contract does not have a clause that supersedes any portion of the Addendum or the vendor presents a revised contract that excludes this clause, and
- There are no requested changes to the Standard Contract Addendum
If the Addendum can be used and the vendor agrees to sign it, the department will handle the full execution of the non-standard/vendor contract and the Standard Contract Addendum.
The department must:
- Retain a copy of the agreement, Addendum, Contract Cover Sheet and any other documents/information required by UHD/UHS policies (e.g., bid/award documentation/memo demonstrating "best value")
- Forward a fully executed contract package to the Contract Administration Office. We will maintain a file of all supporting documents forwarded with the executed contract.
- OGC review is required, but is processed more efficiently if:
- The contract is valued at $50,000 or more,
- The contract has a clause that supersedes any portion of the Addendum, and/or
- The vendor has requested changes to the Standard Contract Addendum
- Contracts that require OGC review will be processed through the UHD Contract Administration office.
Is Insurance Needed?
Listed below is a guide to assist you with determining if the contract does or does not require insurance:
| Requires Insurance | Insurance Not Required |
[Note: Instructors working with children may require special certificate of insurance. Contracting for Professional Services has a specific contract and requires insurance.] |
|
Contact the Risk Management and Compliance Office (Stefany Records at [email protected]) if the scope of work you are contracting for is not included on the above list and you are unsure if insurance is required.
If insurance is not required and you are using a standard contract that includes an insurance clause:
- Contact the Risk Management and Compliance Office for approval to waive the insurance requirement, and
- The contract must be processed through the Office of General Counsel to revise the contract language.
Insurance Requirements
In general, parties contracting with UHD are to maintain insurance coverage proportionate with the risks involved in the particular contract. These include the following:
- Comprehensive General Liability
If the Contractor will enter University property, the following insurance is also required:
- Worker's Compensation;
- Commercial Automobile Liability;
- For Engineers and Architects only: Professional Liability; and
- For Builders only: Builder's Risk.
All policies must contain a waiver of subrogation against UHD and Comprehensive General Liability and Commercial Automobile Liability policies must name UHD as "Additional Insured" .
The contractor must provide a certificate of insurance with the required coverage, specified in the governing contract, prior to the start of work. In most cases, but not all, the insurance requirements in the Standard Purchasing Agr
eement will apply.
Who Can Sign the Contract?
Authorized Signatories
The approved contract signature authority is as follows:
| Dollar Value | Signature Authority | Source |
|
Over $500,000 to $1,000,000 |
President/Chancellor/ Board of Regents (Dr. Loren J. Blanchard, Dr. Renu Khator and Board of Regents) |
Board of Regents [Reference SAM 03.A.05 - Contract Administration - Reference paragraph 6 for specifics.] |
|
Over $300,000 to $500,000 [Note: Delegated authority is not given to component University Presidents for contracts involving the purchase, gift, acquisition, sale or lease of real estate.] |
President/Chancellor/Chancellor's Designee (Dr. Loren J. Blanchard and Raymond Bartlett) |
Chancellor/President's Delegation of Authority (See "University President" in "Designee" column) [Reference SAM 03.A.05 - Contract Administration - Reference paragraph 6 for specifics.] |
|
Up to and Including $300,000 Procurement of Goods and Services that do not require Board of Regent Approval [Note: Delegated authority is not given to component University Presidents for contracts involving the purchase, gift, acquisition, sale or lease of real estate.] |
Respective Division Head (Kimberly Thomas, Dr. Deborah Bordelon, Javier Zambrano, Dr. Daniel Villanueva, Carole Clerie & Lisa Joyner) |
Chancellor/President's Delegation of Authority (See "University President" in "Designee"
column) [Reference SAM 03.A.05 - Contract Administration - Reference paragraph 6 for specifics.] |
| Up to and Including $300,000 Cumulative for Continuing Education related contracts |
Senior Vice President for Academic and Student Affairs and Provost (Dr. Deborah Bordelon) | President's Delegation of Authority Memo |
| Up to and Including $100,000 Cumulative for Information Technology related contracts | Associate Vice President of Information Technology (Hossein Shahrokhi) |
President's Delegation of Authority Memo |
| Up to and Including $100,000 Cumulative for Facilities Management related contracts | Assistant Vice President of Facilities Management (Timothy Rychlec) |
President's Delegation of Authority Memo |
|
Up to and including $100,000 Cumulative for Academic and Student Affairs-related contracts |
Executive Director, Academic Administration & Operations (Zewuze Ladzekpo) | President's Delegation of Authority Memo |
| Up to and Including $100,000 All Areas | Assistant Vice President of Business Affairs (Theresa Meneley) |
President's Delegation of Authority Memo |
| Up to and Including $50,000 Sponsored Program-related contracts | Associate Vice President for Faculty, Research & Sponsored Programs (vacant) | President's Delegation of Authority Memo |
| Up to and Including $50,000 for Presidential Event-related contracts |
Director of Advancement Services & Business Operations OR Executive Associate to the
President
(Brian Drake, Vanessa Pigeon)
|
President's Delegation of Authority Memo |
| Up to and Including $50,000 for All Areas | Director of Business Services & Contract Manager (Lorena Sanchez & LaShonda White) |
President's Delegation of Authority Memo |
| Up to and Including $50,000 for Public Safety contracts (Covers Police Department, Emergency Management and Environmental Health and Safety) |
Executive Director of Public Safety and Chief of Police (Casey Davis)
|
President's Delegation of Authority Memo |
| Up to and Including $25,000 for President's Office contracts |
Director of Advancement Services & Business Operations (Brian Drake) |
President's Delegation of Authority Memo |
|
Up to and Including $1,000 for Referees and Fitness Instructor contracts and |
Director of Sports & Fitness (Caleb Wells) | President's Delegation of Authority Memo |