Agreements and Contracts
The Research Foundation is involved in numerous activities and business ventures with various contractors, subcontractors, and business entities. Therefore, it is necessary to ensure that the Research Foundation is adequately protected against losses or claims arising out of the activities of contractors, subrecipients, and business entities.
Due to the complexities of independent contractor determination and agreements it is recommended that you work closely with the Human Resources department to determine the best method of including expenses into an independent contractor agreement. It is preferred that expenses for independent contractors are not reimbursed. Expenses incurred by independent contractors as part of services performed on their contract should be included in negotiated fee for service.
In some instances sponsors may require expenses to be itemized and copies of receipts submitted for grant reporting purposes. The amounts paid to an independent contractor for expenses that are included in the independent contractor agreement are considered payment for services and will be reported as income and is not considered a reimbursement to the indendent contractor.
If the Research Foundation determines that an activity warrants additional protection against certain risks, it may request that the organization it is conducting business with provide a certificate of insurance. This certificate should have an attached "additional insured endorsement" stipulating that CSU, SJSU, and the SJSU Research Foundation are additional insured under the contractor, subrecipient, or vendor insurance policy.
The certificate should be sent to the department seeking the services of the contractor or supplier and to the Risk Management department. All certificates of insurance and additional insured requests should be submitted to the Risk Management department for processing.
All agreements/contracts must be submitted to the sponsored programs analyst so they may review and route to the appropriate Research Foundation authorized signer who will:
a) Review and approve the business terms of the agreement/contract
b) Review the legal, financial, and/or insurance terms and work with the Risk Management department as appropriate.
c) Obtain signed copies of all such signed agreements/contracts.
Note: Properly authorized contracts and agreements can be used in lieu of a purchase order.