Contracting at NIU

Overview

If you enter into contracts on behalf of the university or assist with the contracting process, you are responsible for following university policies and procedures, as well as applicable laws and regulations. Your compliance with university requirements helps ensure that the university's interests are protected and that the university does not assume inappropriate risks.

Please familiarize yourself with the information about university contracts and the contracting process.


What is a Contract?

A contract is an agreed set of terms and conditions governing the relationship between two or more parties. A contract may be called by many different names, for example an agreement, letter of agreement or memorandum of agreement, or have a title that does not include the term "contract" or "agreement". As used within the OGC Contracts Procedures, the terms "university contract" and "contract" include, but are not limited to, the following:

  • Agreements
  • Memoranda of understanding/agreement
  • Letters of intent
  • Estimates
  • Proposals
  • Settlements of disputes
  • Affiliation agreements
  • Liability waivers
  • Assignments of rights
  • Licensing agreements
  • Renewals
  • Amendments

A university contract may be legally binding even if no monetary payment is involved.

A university contract does not include contracts entered into between departments or units within the university, contracts entered into by or for entities that are legally separate from the university or contracts entered into by student organizations.


Types of Contracts

There are two types of university contracts, procurement and non-procurement.

A procurement contract (1) either commits funds from the university or is revenue-generating or zero-dollar, and (2) involves a vendor or service provider (a person or entity that provides goods or services to the university). Procurement Services and Contract Management is responsible for reviewing and managing procurement contracts.

A non-procurement contract is revenue-generating or zero-dollar and does not involve a vendor or service provider. The Office of General Counsel is responsible for managing the legal review of certain non-procurement contracts. Other university units, such as Sponsored Programs Administration and Human Resource Services, have contracting responsibilities for certain types of non-procurement contracts relevant to their areas of expertise.