Contracting Policy

Contracting Policy

Authority to enter into any contract on behalf of Saint Joseph’s College is reserved to the President and to the Chief Financial Officer (CFO). Further delegation of authority to other College employees may be made, as provided in this policy, or by written authorization of the President or CFO. (* Exception: employees may enter into contracts on behalf of the College with speakers, lecturers or performers, not to exceed $1,500. Authority given to certain individuals within this policy supercedes this limit if explicitly stated below. The employee must obtain a completed contract and Form W-9, prior to the date of the event/lecture. A sample contract can be found at Engagement Letter for Speakers and Performers (doc).

General Comments

Authority to enter into any contract on behalf of Saint Joseph’s College is reserved to the President and to the Chief Financial Officer (CFO). Further delegation of authority to other College employees may be made, as provided in this policy, or by written authorization of the President or CFO.

College employees involved in the preparation, negotiation, and execution of contracts are responsible for understanding and compliance with the provisions of this policy. College employees or students who enter into agreements without the requisite authority may be personally liable for the obligations assumed under such agreements, and may be subject to disciplinary action, up to and including dismissal.

A contract creates legally binding obligations, exposing the College, its employees and other members of the College community to certain statutory and legal risks. This policy is intended to reduce these exposures by ensuring that any commitment of College resources and all related agreements obligating the College are properly reviewed and approved.

Definition

For purposes of this policy, a “contract” is defined as an agreement[1] between the College and one or more external parties (counterparty) which commits College resources (monetary, human, facilities, or tangible or intellectual property) and may be construed to be legally binding. A contract contains a common understanding among the parties as to the essential terms of agreement and the consideration to be exchanged in return for specified performance. A contract may be considered binding even though one party provides something of value to the other party at no charge.

Some examples of contracts contemplated in this policy include, but are not limited to:

• agreements, including purchase orders, which bind the College to purchase lease, license, or rent goods or services from an outside party;
• agreements for the sale, lease, use, or donation of College assets or services;
• agreements that set terms for the acceptance of gifts;
• licenses or agreements to conduct business on College property;
• memoranda or letters of understanding or cooperation;
• contracts with hotels, convention centers, or other facilities;
• instructional agreements;
• employment contracts and letters of appointment creating an employer-employee relationship;
• student or faculty exchange agreements;
• assignment of the right of a person, group, or agency to use the College’s name, logo, or resources;
• exclusivity agreements with vendors;
• liability waivers;
• dispute settlements;
• nondisclosure agreements;
• construction and architectural design contracts;
• financing agreements

Delegations of Authority

Authority to execute contracts is granted to select administrators, by title, subject to certain thresholds defined in the table presented below.  In each case, the administrator is limited to contracts within his/her scope of functional responsibility. Any employee who executes a contract implicitly attests that it has been properly reviewed for compliance with College policies, for insurance requirements, and that there is sufficient budget and/or human resource support to meet the College’s performance obligations.

Any employee who negotiates a contract subject to referral to another individual for execution is responsible for ensuring the contract meets all policy standards prior to its referral.

Authorized Deans or Directors may not execute any contract having a term exceeding one year, regardless of its total dollar value.