Contracts – Frequently Asked Questions

A “contract” is any agreement (whether in writing or oral) between the University (on behalf of any of its offices, divisions, schools, departments, etc.) and one or more external parties (usually these are contractors of goods or services or entities with which the University seeks to affiliate) that is intended to create an obligation. There must be an exchange of something of value between the parties or an obligation to take or refrain from action (e.g., to pay money, perform services, provide goods, or not disclose information). A contract may also bind a party even if the party is receiving something of value at no charge, such as a license, data use agreement, or a release from liability. A document may be a contract even if the University is not paying anything for the item or service that it is receiving in return. 

A document does not have to be called a “contract” to be a legally binding instrument. It may be called an “agreement,” (e.g., Nondisclosure Agreement, Data Use Agreement, Education Partnership Agreement, Teaming Agreement, Affiliate Agreement, etc.), “terms and conditions,” “purchase order,” “letter agreement,” “subcontract,” “sub-award,” “sub-grant,” “memorandum of understanding,” “memorandum of agreement,” “letter of intent,” “letter of understanding,” or “waiver.” It is also possible that the document does not have a specific title. 

Any contract (or agreement or purchase) arranged while someone is acting within the scope of their employment with NC A&T is probably a university contract. University contracts have a university interest and benefit at stake. University employees can arrange and sometimes negotiate the details, but cannot execute (sign) a university contract unless authorized by University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts. In general, agreements are not University contracts if they are entered on behalf of a legal entity that is not the University. Such entities include a foundation (including those affiliated with NC A&T, such as the NC A&T Real Estate Foundation), a student organization, or a private entity or individual (except employment contracts). 

Yes, contracts should be in writing. Contracts are a record of commitments for NC A&T and other parties. While contracts can be made orally, NC A&T and the State of North Carolina require that all University contracts be in writing (e.g., through a written contract, a purchase order, or by use of a P-Card). This ensures accountability and creates records for compliance and auditing purposes.  

A well-drafted written contract will protect the University’s interests, reduce the possibility of misunderstandings, manage expected costs, allocate and mitigate risks, and help prevent future conflict. A written contract is an excellent reference in the event of a lawsuit. Contracts are one means for the University to remain efficient, organized, and up-to-date on current business, community, and academic relationships. A contract should always contain at least fundamental information necessary to understand the intent of the parties: 

  • the names of the parties; 
  • the responsibilities and obligations of each party; 
  • the duration of the contract; 
  • the terms of payment (if any); 
  • the procedures necessary to terminate the contract; and 
  • signature by authorized representatives of each party.  

No. A contract should never be made in the name of a school, office, division, department, unit, center, research group, or individual employee; the full legal corporate name of the University should always be used. 

All contracts should be in the full legal corporate name of the University: “North Carolina Agricultural & Technical State University.” In the rare circumstances where identifying a college, office or division, department, unit, or center is necessary, you may use the identifier “North Carolina Agricultural & Technical State University on behalf of its <<<insert name here>>>.”  

Generally, you will upload contracts to IntelAgree for review. The proper route for contract approval depends on the subject matter and scope of the contract. IntelAgree has built-in workflows depending on the contract. For additional information, contact the Contract Manager in Procurement Services or the Office of Legal Affairs. 

Probably not. As a state government entity, NC A&T is subject to certain legal requirements and restrictions which may impact its ability to accept certain contract terms. All University contracts must be reviewed by the appropriate units and should be routed through the contract review process. NC A&T requires the use of our standard forms (template agreements), when applicable.  

No. The most current existing contract templates are in IntelAgree.  

The Office of Legal Affairs, working with various offices, has created standard contract templates to address certain routine contractual transactions. Those templates are in IntelAgree.  

Generally, all contracts should be routed through the contract review process.  

In general, the first point of contact depends on the nature of the contract: 

  • Procurement Services (in the Division of Business & Finance) is responsible for most purchases of goods and services. In consultation with the Division of Human Resources, they also draft some contracts involving consultants and independent contractors. 
  • The Office of Sponsored Programs (in the Division of Research) is responsible for the development and processing of sponsored projects, submission of proposals to funding agencies, and administrative management of an award for a sponsored project for the life of the project.  
  • The Office of Contracts and Grants (in the Division of Research) is responsible for the administration of financial accounting for all sponsored agreements awarded to N.C. A&T.  
  • You also may contact the Office of Legal Affairs for assistance. 

Reach out to the Division of Human Resources for help. This is not always an easy question to answer, as several factors need to be reviewed to determine whether the individual will be properly classified as an employee or independent contractor. There are also IRS rules and NC state laws to consider.  

No. Please remember that you are most likely not authorized to sign for university contracts and therefore not authorized to bind the University in a written or verbal contract. Even if you are an authorized signatory, NC A&T and the State of North Carolina require that all University contracts be in writing. So-called gentlemen’s agreements and handshakes do not protect the University in the event of a lawsuit or audit. 

No, and you should be careful to avoid any suggestion that you are committing NC A&T to anything. Please remember that you are most likely not authorized to sign university contracts and should be clear with the other party that you are only involved in negotiations and any resulting agreement between the parties is dependent on the execution of a written contract that satisfies the university’s contracting requirements, including signature by an authorized individual.   

No. A contract should never be made in the name of a school, office, division department, unit, center, research group, or individual employee. No employee of the University, including officers, faculty, and staff, is authorized to sign a contract on behalf of the University unless they have been delegated with authority to do so in writing in accordance with University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts and Appendix A to University Policy 1102, Signature Delegations of Authority. Neither students nor student organizations have authority to bind the student organization or the University.  

  • As a general rule, only the Chancellor and certain members of the Chancellor’s Cabinet have the authority to execute contracts for the University. In limited cases, signature authority has been sub-delegated by Cabinet members in writing and is on file with the Office of Legal Affairs. You can also find the list of authorized signatories here. 
  • Specific authority is set forth in University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts and Appendix A to University Policy 1102, Delegations of Signature Authority.  
  • Anyone else executing a contract that purports to bind the University or its subunits is acting without authority.  
  • The University is under no obligation to honor unauthorized commitments, and individuals who enter into contracts outside the scope of their authority may be personally liable for the unauthorized commitment, breach of the contract, or the full value of the contract. 

Yes. Click-through agreements or terms are mostly found on the internet, where the end-user accepts the terms and conditions of the contract by clicking an “ok” or “agree” button. The terms and conditions of the contract are usually available through a web link. Anytime you have to click “I accept” online, you are being asked to agree to terms and conditions that need to be reviewed through NC A&T’s contracting process. If the contract is for an item that is related to information technology or software, then NC A&T’s Division of Information Technology Services must also be consulted in the contract review process. There is a workflow for those contracts in IntelAgree. The responsible University office is required to keep copies of all click-through contracts on file and ensure that Procurement Services has a fully executed copy of the contract. 

Yes. Any time a contract has to be signed (regardless of how the financial obligations will be met), the contract must go through NC A&T’s contract review process and be signed by someone authorized in accordance with University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts and Appendix A to University Policy 1102, Signature Delegations of Authority. Once a contract has been reviewed and signed by both parties, payment to the contractor can be made through an online requisition with Procurement Services or by P-Card. When using a P-Card, both the invoice and a properly executed copy of the contract are required as supporting documentation in the P-Card Expense Reporting process. 

Sometimes. If the purchase is less than $25,000 and does not require a written contract or purchase order, then review by Procurement Services is encouraged, but not required. All purchases that involve a written contract or purchase order must be reviewed. Purchases over $25,000 must be made through Procurement Services, normally via a bid process.  

Yes. Any time a transaction involves a contract or purchase order, the contract or purchase order must be submitted to Procurement Services. This is true even when the goods or services are being provided for free. 

If you aren’t far along in the process, talk with someone in the ITS Security Office. If you’re already at the contracting stage, the contract needs to be submitted for review in IntelAgree. ITS also needs to review your needs and the vendor’s proposed product/service, including requiring a vendor security assessment.  

Yes, whenever a contractor or third-party asks to use NC A&T’s logo or marks, a written contract between the University and the third party must be created. The NC A&T department seeking to enter into the contract is responsible for (a) verifying the legitimacy of the contractor’s use of the university’s name and marks and (b) monitoring the use by the contractor to ensure that it does not exceed the scope of the permission granted in the contract. University branding is the responsibility of the Office of University Relations, which should review and approve use of the University’s name, logo, service and word marks and/or trademarks. University employees must comply with the standards and should seek guidance from the Office of University Relations if they have questions.  

Yes. When contracting with a foreign national for employment, the contract must be submitted to the Division of Human Resources and the Office of International Affairs for determination of whether the individual can legally work in the United States or on behalf of NC A&T. If you are contracting with a company based outside the US, the Office of International Affairs will be involved in the contract review. Before submitting the contract for review, please identify what (if any) activity is occurring outside of the United States.  

Student organizations must not execute contracts on behalf of the university.  The student organization should contact the Office of Student Activities and Campus Involvement . The only people authorized to sign for N.C. A&T have been delegated that authority in accordance with University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts. Failure by students or student organizations to follow the contracting policies established by the University may violate the Student Conduct Regulations and University Policy 1102, Signature Authority and Delegation of Authority to Sign Contracts and result in disciplinary action against the individual or group. 

 

Ask the contractor if NC A&T or the UNC System Office already signed a master agreement with the contractor. If yes, ask for the name of the contractor’s primary NC A&T or UNC System contact (as applicable) for the master agreement. Next, send the statement of work, all details about the master agreement, including the name of the primary contact (if provided), and any other relevant information to Procurement Services at purchase@ncat.edu. Procurement Services will review the statement of work and help make sure it is processed correctly. 

  • Generally, no… but yes in very limited circumstances. The North Carolina Constitution precludes agencies from paying for personal services before they are performed. NC A&T can make progress payments during the life of an agreement based on evidence that a certain amount of work has been completed. This distinction should be addressed during contract negotiations before a contract is signed.   
  • But yes when…Procurement Services will work with you to negotiate contracts for (1) maintenance of equipment or resources, which are considered purchased services, and payments can be made up to a year in advance of the actual service and for (2) commodities, such as subscriptions and memberships. 

No. NC A&T requires contracts to be reviewed and fully signed by authorized representatives of all parties before any work, service, payment, or the usage of any University facilities begin. 

 

  • An electronic signature can be one of many things – an image of a handwritten signature, a symbol, a voice print – anything used to identify the author of an electronic message or signatory of an electronic document.  
  • A digital signature is a secure form of an electronic signature that can be thought of as an equivalent of a handwritten notarized signature. A digital signature is created with software that uses technology to bind a signature to a document and provide proof of signatory, and is designed to resist tampering or alteration. The University uses certain forms of electronic signatures, including digital signatures, for contract execution. 

Make sure a copy of the fully executed (signed) contract is shared with Procurement Services. The “office of record” for a contract is the unit responsible for ongoing management of the contract. The office of record must: 

  • Ensure performance obligations are met; 
  • Manage deadlines identified in the contract; 
  • If you want to extend/renew the contract, engage with Procurement Services or the Office of Legal Affairs.  
  • Manage the budget associated with the contract; 
  • Confirm proper payments or invoicing/receiving payment (Procurement Services can help); 
  • Obtain any required documentation (e.g., insurance documentation from the Office of Insurance in NC A&T’s Department of Environmental Health and Safety). 

If your department cannot fulfill University obligations under a contract or if other issues arise, you should immediately inform the University’s authorized signatory for that contract, Procurement Services at purchase@ncat.edu, and the Office of Legal Affairs. To ensure that the University’s rights are protected and enforced, you should also immediately inform the aforementioned if the contractor cannot or is not fulfilling its obligations under a contract.  

The signed contract should contain the terms and conditions under which the contract may be terminated.  Any additional questions regarding termination can be addressed to Procurement Services at purchase@ncat.edu. 

Immediately inform the University’s signatory, Procurement Services, and the Office of Legal Affairs. 

Immediately forward the notice to Procurement Services at purchase@ncat.edu and to the Office of Legal Affairs at legal_review@ncat.edu. 

 

Contracts are generally processed on a first-in, first-out basis and can take from a day to several days depending on the complexity of the contract and volume of contracts already in process. Requests for rush or priority processing will be accommodated as practicable on a case-by-case basis. It is important that you allow sufficient lead time for timely review (if everything is a rush, nothing is a rush).  

The department requesting a contract is responsible for making the business/programmatic decisions regarding the contract and contract performance. The department should identify at least the following before starting the contract review process: 

  • Scope of work, reason for the contract, and parties’ obligations; 
  • Name and address of the other party to the contract;  
  • Services or goods that will be provided to or by the University; 
  • The timeline for the services to be completed or goods obtained; 
  • Deliverables (e.g., any written work, service, goods, or materials being provided); 
  • Total cost of or revenue from the contract and financial impact on the University; 
  • The institutional interest to be served; 
  • Assessment of the potential risks and benefits to the University (e.g., financial, reputational, legal, etc.). 

The Office of Insurance in NC A&T’s Department of Environmental Health and Safety maintains the University’s standard insurance and indemnification requirements. Insurance is required to be addressed in most University contracts to ensure that there are funds to cover identified losses to the University (such as bodily injury, property damage, or liability exposure) caused by an act or failure to act on the part of the contractor. The types of insurance and limits required are tailored to particular activities, and take into account the severity of the potential loss and not just the value of the contract

Your trip may require a waiver or release of liability or other rights, depending on several factors such as the type of activity, location, attendees, etc. First, ensure that your dean and the Provost’s Office of Dean of Students’ Office is aware and approves. Questions about whether your trip and/or event requires a written waiver/release of liability should be submitted to the Provost’s Office for academic domestic travel and Dean of Students Office for student activity domestic travel. Questions about trips and events involving international travel should be directed to the Office of International Affairs.  

If you routed your contract through IntelAgree, you can look in the system to see the status of the contract.  

This proof can be found in the Forms listing on the Division of Business and Finance website. You can also contact Procurement Services at purchase@ncat.edu to request it.   

Form W-9 is the Internal Revenue Service form used to provide the University’s taxpayer identification number (TIN). The Form W-9 can be found under the Forms listing on the Division of Business and Finance website.  You can also contact Procurement Services at purchase@ncat.edu to request it.   

For contracts related to research, see the Office of Sponsored Programs’ Frequently Asked Questions.