Contracts Urbana

Contract Types

A contract is an agreement, enforceable by law, between two or more parties for the doing or not doing of something specified. While many types of contracts exist, below is a brief list of the types that may be used on the Urbana-Champaign campus. This is by no means an exhaustive list. If you do not find the type of contract you have questions about listed below, contact the AVP Office at 333-4638 or uiucavp@uillinois.edu for assistance. Please click on any of the links below to learn more about each contract type:

Affiliation Agreements typically do not involve any transfer of funds, but there is a perceived benefit to engaging in the agreements for each party. Common examples are Clinical or Educational Affiliation Agreements by which the University of Illinois may send one or more students to another clinic or school in order to receive training, practicum, or instruction in a specialization or facility that is not available to them in our community; and Student Teaching Agreements by which University of Illinois students are placed in local and/or regional elementary and secondary schools as student teachers. These types of agreements provide a benefit to our students in terms of experience and additional learning opportunities and they also provide a benefit to the other party that receives the services of Illinois students without having to pay them wages.

If the agreement is with a foreign institution, the agreement should either originate from, or be approved by the Office of International Programs and Studies.

Where to Start:
For assistance in drafting a single instance affiliation agreement, contact the AVP Office. If your college or department is going to be entering into multiple affiliation agreements with more than one institution, contact University Counsel. That office will review drafts you have prepared and, where appropriate, create template agreement forms for future use.

Change Orders are written orders to a contractor authorizing a change to an existing project construction contract. The change may include an addition to, deletion from, adjustment, or revision of the requirements of the original contract documents, an adjustment to the amount payable, the time for performance, the date(s) of completion, of any combination of those things. A change order must be germane to the project and services originally contracted.

Where to Start:
Your first point of contact should be your F&S Project Manager. For further assistance, contact the Office of Facilities, University Office of Capital Programs and Real Estate Services (UOCP&RES).

Concessions grant access to University property, whether tangible or intangible, in exchange for payment. This payment may come in the form of a percentage of a vendor’s sales resulting from the concession agreement. For example, a vendor may be interested in setting up a table or booth on University-owned property from which they will sell items. In exchange for allowing the vendor access to our (tangible) property, they pay the University a percentage of the sales revenue they earn during that time period. Another example may be a vendor with a product that may appeal largely to students living in residence halls. In exchange for allowing that vendor to place their marketing materials in housing welcome packages or distributing their marketing materials to our mailing lists, the vendor pledges a percentage of the sales revenue for each item they sell as a result of having access to our residential students (intangible property).

Where to Start:
Contact the AVP Office for assistance with a concession contract.

Construction Contracts are typically initiated by Facilities & Services (F&S) or the University Office of Capital Programs & Real Estate Services (UOCP&RES). Several types of services are appropriate to construction contracts (including, of course, construction services). Some examples include architectural services, engineering services, and land surveying services.

Where to Start:
Contact the Construction Management Division at 217-333-2500 for assistance in contracting for any type of construction-related services.

Please see Professional & Artistic Services agreements below.

Data Sharing Agreements are a type of Material Transfer Agreements that specifically deal with the transfer of information. For more information on processing these types of contracts, see Material Transfer Agreements below.

Facilities Use or space rental agreements are for short-term use of space, usually for a specific event. If the University is renting its own space, the renter (Client) must sign our agreement. If the University is renting space from the other party, we must usually sign their agreement.

Where to Start:
If you are a University unit that wishes to rent your space to an external entity, contact the University Office of Capital Programs and Real Estate Services (UOCP&RES). If you are renting space from an external entity (like a hotel, conference center, church, recreational facility, etc.) and there is a payment involved, route the contract to Purchasing along with a requisition. If there is no payment involved, route the contract on a Contract Approval/Routing Form (CARF). It should go to University Counsel first, then to the AVP Office for review and approval. If the facility requires a certificate of insurance, you can request one from the Office of Risk Management, only after the contract has been fully executed.

Honoraria are tokens of gratitude or appreciation. It is a one-time payment made to an individual, who is not an employee of the University, for a special and non-recurring activity or event for which a fee is not legally or traditionally required. The intent is to show appreciation for participation in University educational, research, or public service activities or events.

Where to Start:
It can often be difficult to determine whether a payment should be an honorarium or professional & artistic services. The key to this decision is expectation. If a speaker or guest expects to be paid for his or her time and services, then they cannot be paid an honorarium. If you are unsure which payment type to use, see the OBFS site on Honorarium Payments or contact University Payables for assistance.

Intellectual Property Agreements might deal with a third party’s use of our intellectual property, or vice versa. Some common examples of intellectual property are software, courseware, books, journals, technological developments, or other types of inventions.

Where to Start:
For contracts related to University-owned intellectual property, contact the Office of the Vice President for Technology and Economic Development (OVPTED). For contracts related to the use of intellectual property owned by a third party, contact the Purchasing Division.

Interagency Agreements / Intergovernmental Agreements occur when the University (a state agency), contracts with another state agency or governmental entity.  Intergovernmental Agreements (or IGA’s) require different terms and certifications than other types of contracts.

Where to Start:
For assistance in drafting or reviewing an Intergovernmental Agreement, contact University Counsel.

Material Transfer Agreements govern the transfer of tangible research materials between the University and another company or institution. The Material Transfer Agreement defines the rights of the provider and the recipient with respect to the materials and any derivatives. It typically covers liability, confidentiality, and other relevant terms. Biological substances are the most frequently transferred materials, but Material Transfer Agreements may also be used for other types of materials, such as chemical compounds and even some types of software. The parties to the agreement must consider the facts of each situation in the negotiations of appropriate terms.

Where to Start:
For assistance with Material Transfer Agreements where the University will be the recipient of incoming materials, contact the Office of Sponsored Programs and Research Administration (OSPRA). If the University is purchasing the materials, consult the Purchasing Division. For assistance with Material Transfer Agreements where the University will be the provider of materials, contact the Office of Technology Management (OTM).

Memorandums of Understanding (MOU’s) or Memorandums of Agreement (MOA’s) are often used inappropriately. Use of the terms “Memorandum of Understanding (MOU)” or “Memorandum of Agreement (MOA)” does not mean that the document is not a legally binding contract. The substance of a document and not its name determines whether it is an enforceable contract. Typically an MOU or MOA should be used when the parties want to document their intention to enter into a binding contract. In other words, the MOU will serve as the basis of a future formal contract. Sometimes the University will use an MOU or MOA to document arrangements between departments or units within the University. Keep in mind, however, that many parties, including foreign institutions, will issue a document titled “MOA” or “MOU” that contains legally binding obligations. An MOU or MOA must be routed, reviewed, approved and signed according to the same policies and procedures governing contracts.  In addition, all MOU’s and MOA’s must be approved by the Chancellor’s Office.

Where to Start:
For assistance in determining whether an MOU/MOA is appropriate, contact the AVP Office or University Counsel.

Miscellaneous Sponsorships may come in various forms. Often an individual or organization providing sponsorship or support to the University desires a tax deduction, which requires the payment to be deposited as a gift.

Where to Start:
For assistance in determining whether a sponsorship should be deposited as a gift, contact the University of Illinois Foundation.

Non Disclosure Agreements (NDA’s), or confidentiality agreements, outline confidential material, knowledge, or information that two parties wish to share in order to conduct business with one another. An NDA creates a confidential relationship between the parties to protect any type of non-public business information from third party access.

Where to Start:
For assistance in drafting or reviewing a Non disclosure agreement related to a purchase or procurement, contact the Purchasing Division. For assistance with an NDA related to a research activity, contact the Office of Sponsored Programs and Research Administration (OSPRA). If no research or procurement is contemplated in the NDA, contact University Counsel for assistance.

Non-Standard Contracts are any contracts that are not University-generated. This typically refers to contracts and forms that come from a third party Client or Vendor. For routing and approval purposes, non-standard contracts are treated like standard templates that have had substantive changes made to them. They should always be approved by University Counsel, but should start with the administrative unit responsible for the category of contracts into which the non-standard contract falls.

Where to Start:
For assistance in reviewing a non-standard contract for the procurement of goods or services, contact the Purchasing Division. For assistance in reviewing a non-standard revenue-generating or concession agreement, contact the AVP Office. For all others, consult the information provided on this page.

Professional & Artistic Services agreements are used when a non-University employee will provide a specific service, or services, and will receive payment for their work.  Professional & artistic services (P&A) are primarily intellectual in nature. More information about what qualifies as professional & artistic services is available on the Purchasing Web Site.

Where to Start:
Standard templates for P&A contracts under $5,000 are available on the OBFS Forms page. The standard template for P&A contracts over $5,000 is currently being reviewed by Purchasing and Legal Counsel. Until a new template is published, please start with the Professional & Artistic Services Information Form (PASIF) on the OBFS Forms page. For assistance in drafting or reviewing a P&A contract that is not on a standard template, contact the Purchasing Division.

Publishing Agreements are most commonly used by the University of Illinois Press in order to secure publishing rights to someone else’s written work. The University signs these agreements only when the University is the entity securing publishing rights.

Where to Start:
For assistance with a publishing agreement, contact the University of Illinois Press.

Purchases of Goods and Services might include the procurement of general services, goods and products, professional & artistic services, or software licenses.

Where to Start:
For assistance in purchasing items or services, contact the Purchasing Division.

Real Estate Leases are for long-term space or facility occupancy. Long-term might be one month or five years, but generally means anything more significant than the duration of a single event. There are various business rules, terms, and state certifications that must be followed depending on whether the University is the landlord or the tenant.

Where to Start:
All leases, whether for University as landlord or tenant, must be drafted and/or reviewed by the University Office of Capital Programs and Real Estate Services (UOCP&RES).

Revenue Generating Agreements are used when the University is being paid for providing goods or services.

Where to Start:
Standard templates for revenue-generating activities are available on the OBFS Forms page. For assistance in drafting or reviewing a revenue generating agreement, contact the AVP Office.

Software Licensing Agreements are a form of Intellectual Property Agreements (see above).

Sponsored Projects and Activities result from proposals submitted for external funding from Federal, State, or private sponsors. These funding awards are commonly referred to as grants and may also include no-dollar agreements that have certain reporting requirements.

Where to Start:
For assistance in drafting or reviewing contracts associated with grants or other sponsored projects, contact the Office of Sponsored Programs and Research Administration (OSPRA).

Standard Form Agreements / Templates have been created by OBFS and University Counsel to assist units in expediting the most common types of contracts. Standard templates contain pre-approved general terms and conditions. If a template is accepted and signed by a Client with no changes, that contract does not require any additional review or approval by University Counsel.

Where to Start:
Units can access the most frequently used contract templates from the OBFS Forms page. For units with a recurring project or service, a customized template may be appropriate. To inquire about this possibility, contact University Counsel.

You can print ALL the descriptions of Contract Types (PDF)

Last Updated: March 29, 2010