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Contracts

Contracting for Goods and Services
Process of contracting services with University or ASM funds
Steps in the Contracting Process (with non-university funds)
Contracting Terminology
Dances, musical events, speakers
Are we Covered by University Liability Insurance?
Special Events Insurance for Student Organizations
Requesting Corporate Sponsor Insurance Coverage

Contracting for Goods and Services

Signing contracts and purchasing goods and services are important parts of program planning. Caution is necessary because it involves a financial commitment on the part of your organization. Telephone messages, verbal agreements, memorandums, and emails can create a contractual commitment and become binding to an organization or individual. Organizations or their individual members can be held liable for their contracts and agreements, both written and oral. The university is not a party to contracts made by student organizations unless a contract involves university funds or significant sponsorship by the university. In these situations, the contract must be referred to the university departmental staff person in order to comply with the university's contract requirements for signatures, etc.

Process of Contracting Services with University or ASM funds


If your student organization is receiving funds from a university department, office, or student government to purchase goods or services, you must make arrangements with that department, office, or student government budget person to coordinate the contract process. In these cases, a university representative will review and sign the contract. When university department or office funds are used to purchase goods or services, the terms of any contract must: 1) comply with various laws that apply to the university, as well as university policies, and 2) an official university signatory must sign the contract. When a provider of goods or services supplies its own contract, a university rider is typically attached to an agent’s or individual’s contract to make sure it complies with laws and university policies. A standard university contract is available where providers of goods or services do not supply their own contract. A university rider or contract can be obtained from the department providing the funds or from the Wisconsin Union for events held in union facilities.

Steps in the Contracting Process with Non-University Funds


Contact the goods/services provider (such as performers, speakers or trainers) to secure needed information.
* If university facilities are needed, work with the Central Reservations Office to make sure your facility is reserved for the relevant date and that the facility meets the goods/services provider’s needs/specifications.
* Make sure all contracts contain all necessary information about the activity in writing.
* Confirm in writing the date, time, place, topic, fee, travel arrangements, security arrangements, cost, etc. prior to signing any contract.
* Keep written records of all contacts, contracts, riders and amendments, as well as a list of all verbal communication and any agreements made.
* Read all documents carefully and note any disclaimers or provisions.
* Make sure that the details of an agreement are correct and the document does not contain any blank spaces.
* If you want to make a correction to a contract, use a rider to amend the original and make sure both parties initial the amendment.
* Prepare two originals of the contract where possible, so that the RSO and the goods/services provider will each have a signed copy of the contract.
* Return the signed contract and any riders to the goods/services provider, and make sure to keep a copy of the agreement after it has been signed by both parties.
* Remember that student organizations are responsible for their financial commitments. If you have questions or need assistance, contact the university office involved with your program or the Legal Information Center, 608/265-2396, before agreeing to anything.

Contracting Terminology

Professional agency contract is a standard contract used by speakers or performers who use the services of a professional agent for the purpose of scheduling and collecting fees and stating the terms of service.
Confirmation letters, contracts, or other documents will need to be generated by your organization if you are seeking to employ the services of speakers or performers who do not use a professional agent. The documents you send should specify all necessary information: date, time, topic, travel arrangements, fees, liabilities, security arrangements, time and type of payment, and any other information you deem necessary. It is better to err on the side of having too much information rather than too little. Be specific as to exactly what you ARE and ARE NOT paying for.
A contractor is the entity providing the goods or services under a contract.
A contractee is the party receiving the goods or services from the contractor.
A rider is an attachment to a contract that contains various terms and conditions, spelling out the necessary details of the purchase or service. A rider may be used in a variety of ways such as to amend a contract and to expand the terms of a contract initiated by a professional agency.

Dances, Musical Events, Speakers

Make sure the facility you want is available AND reserved for the day you want. Registered Student Organizations may not invite the non-university general public to these events unless the event is sponsored by a university department. If your event is scheduled in the Wisconsin Union, additional policies apply to major social events like dances. For a copy of these guidelines, see Large Social Events information at www.union.wisc.edu/conferenceservices/activities/#social or contact Central Reservations, 2nd floor Memorial Union, (608)262-2511. Get a contract in writing from the entertainer(s) before starting publicity. There are charges for use of a university facility for revenue producing events if the event is held on campus. If tickets are sold ahead of time, you need to print tickets. Sales tax will be due on tickets sold.

Are we Covered by University Liability Insurance?

The university is insured through the State of Wisconsin’s self-insurance program, and coverage is limited to liability caused by employees and agents of the university while in the course and scope of conducting official university (state) business. Accordingly, student organization activities are not normally covered by the university's liability insurance program. Students' negligent actions may be covered if the activity is supervised by university departmental staff and the activities are consistent with the department's mission.

Special Events Insurance for RSOs

For those events that cannot be covered by university's liability protection, but for which there is a potential risk of injury or property damage to others (not participants), the Office of Risk Management can assist the RSO in obtaining liability insurance on an event basis. The purpose of this coverage is to protect your organization and your members from the financial risk of claims being made against them. For example, your group wants to sponsor an event such as an animal show, a dance, or a concert - now you can protect your organization against claims that members of your organization were negligent in causing an injury or property damage. There is a charge based on the type of event, the number of days and the anticipated attendance. For more information, contact the University’s Risk Management Manager, Debbie Beich at (608)262-8925 dbeich@uwsa.edu or visit the Risk Management website.

Requesting Corporate Sponsor Insurance Coverage

In some cases, your organization may be able to request coverage through a corporate sponsor by asking that your organization (and the Board of Regents of the University of Wisconsin System) be added as an additional insured under their liability policy for the specific event. This is common practice. For more information regarding general liability questions or university liability coverage contact the university’s Risk Management Manager, Jeanine Critchley at jcritchley@bussvc.wisc.edu or (608)262-8925.