Contracts

In order to achieve the strongest contract possible and provide legal protection to the university and to university employees, students and guests, the Risk Services Department is responsible for reviewing all contracts, agreements, leases and memoranda of understanding (MOU). This includes contracts for services and purchases such as rental or purchase of facilities, equipment, transportation, construction, and supplies; and service agreements for use of software and equipment.  As you receive documents from vendors please complete a contract review and approval form and send it along with the contract to the Risk Services Department.

Process for Review:

  1. Provide an electronic (pdf scan is preferred) copy of the contract review and approval form and the contract to Risk Services at lidensj@plu.edu.
  2. Insure that the scope of work and any fees included in the contract are accurate and provide a summary of the purpose for the contract if it is not clearly explained in the contract.
  3. Provide the source of funds to pay any fees associated with the contract.
  4. PLU’s Director of Risk Services will review the contract to determine if it needs to be reviewed by other PLU departments, PLU’s attorney or if there are any changes that need to be made to the contract. Please call her at x7116 if you have questions.
  5. PLU’s Director of Risk Services will notify the PLU point of contact if the contract needs to be sent out for further review or requires changes.
  6. If changes are required, PLU’s Director of Risk Services will consult with the PLU point of contact referencing the required changes to determine who will negotiate these changes with the individual/company point of contact.
  7. Once a contract has been approved, the PLU point of contact will provide a copy (pdf scan is preferred) of the approved contract to the individual/company point of contact and request they return a copy with original signatures. A fax or email copy is preferable.
  8. The original signature document will be sent to the Department/Division head for signature if required and then forwarded to Risk Services for the signature of the university authorized signatory. Risk Services will retain a scan of the contract in its files.  A pdf scan of the contract will be returned to the PLU point of contact. The PLU point of contact will send the fully-executed document to the individual/company point of contact. The PLU Department should always keep a copy of the contract for the duration of the agreement. Destruction or disposal of contracts should follow the PLU document retention policy.
  9. If the individual/company requires that PLU name them as “additional insured” and provide them a certificate of insurance, PLU’s Director of Risk Services will provide this document.
  10. The PLU point of contact should arrange for payment through the PLU purchase process only after the contract is signed.

Please contact Risk Services at x7116 if you have any questions or concerns.

Contract Risk

Where the risk is low and university’s liability is limited, department Budget Heads may choose to review and sign contracts that are valued at $7,500 or less. The signer must retain the original contract and send a copy (via email is preferred) to Risk Services (lidensj@plu.edu) for our records.

Low risk, limited liability contracts typically include:

  • space/facility rental
  • catering
  • supplies

Department Budget Heads should not sign contracts that are valued over $7,500 or where the risk is high or unassessed, the university’s liability is not limited and/or the university is indemnifying the individual/company for all charges and liabilities.

High risk contracts include:

  • contracts for any services/purchases that involve any form of transportation of employees, students or guests
  • contracts/services that present a risk of physical damage/harm to PLU facilities, equipment, employees, students or guests
  • contracts/agreements/MOUs for students volunteering or interning in the community or for independent study experience