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Contract Administration

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When an agreement between FIU and second party requires a written agreement, in lieu of or in additional to a Purchase Order, it is necessary to issue a contract. A “Contract” is any document intended to set forth an agreement or obligation of any kind between FIU and an outside party. This would include any permit or transfer of legal rights or assumption of obligations. Whether or not a contract is necessary, in addition to or in lieu of a PO, depends on many factors, including how the goods/services are being obtained, the complexity of the services/goods, the contract amount, etc. Often a contract is executed at the Second Party’s request.

It is assumed that those who present contracts for approval and signature have followed the normal business practices and policies of the University relating to initiating a business relationship or transaction, including, but not limited to, compliance with the University’s Procurement Manual.

The Contract Quick Reference Guide and the Procurement Contracts Training provides the basic steps for contracting from start to finish. The Checklist for Drafting Procurement Contracts will assist Contract Managers in the review, submission, and execution of procurement contracts. This checklist outlines the required contract documentation as well as key things to consider, review, evaluate and revise as needed for a procurement contract. This checklist is not all-inclusive, and Contract Managers are advised to carefully review and finalize procurement contracts in their entirety before entering them into Total Contract Manager (TCM).  Please see the Total Contract Management System Manual to assist with entering the contract into TCM.  The Contract Templates Procedures provides guidance on what contract templates should be utilized.

Contract Quick Reference Guide

Phase I: Contract Formation (DRAFT)

Contract Definition
  • A contract is a legally enforceable exchange of agreement. When two or more parties sign a contract, it legally binds them to the terms.
Contract Vs. Purchase Order
  • Contracts and purchase orders serve the same purpose; they serve as the legally binding agreement between two parties.
  • FIU generally uses a Purchase Order in lieu of a written contract document because it is the most efficient process.
  • If a contract is necessary, or requested by one of the parties, there may be a written contract AND a purchase order. • A contract is always negotiated and executed FIRST, and then a purchase order may be issued.
Contract Drafting
  • Contract templates pre-approved by the Office of General Counsel should be used where possible
  • Drafting may be done by Procurement Services (if ITB or ITN is used), Office of General Counsel, or the End User
  • Second Party’s may also submit contract drafts for consideration
Contract Reviews

Phase II: Approvals

Contract Approvals

Phase III: Signatures

Contract Signature Authority

Only the individuals listed on the Signature Delegation page of the Office of General Counsel website and as delegated by the  University President, under the authority of Section 1001.75(5), F.S are duly authorized signatories with authority to bind the University to agreements for the purchase of goods and services.  Additionally, only such individuals have authority to accept electronic (e.g. click-through) agreements on behalf of the University. Contracts, including electronic agreements, signed and/or accepted by other employees or agents of the University shall not be binding on the University.  Those individuals with signature authority may only sign contracts that have been reviewed and revised per the contract review processes outlined in the Procurement Manual, 5.0  Stage Five: Contract Award Process and for the purposes delegated to them, within the dollar limits delegated.

Phase IV: Contract Management

Contract Management Activities
  • After execution, the designated Contract Manager manages the contract. This individual is responsible for the monitoring of the contract and enforcing the terms and conditions of the contract