When to Use What Agreement or Payment
Purchase orders should be used when:
- Terms of the purchase are negotiable
- On-site services will be provided (e.g., installation; or the purchase is for on-site services only)
- Value of products exceeds $50,000
- Product defects may not be known immediately (e.g., poor construction on furniture)
- Custom made products are involved
- Purchase/use of chemicals is involved (the P.O. requires the seller to provide Material Safety Data Sheets for all products if applicable)
There may be vendors with whom it would be better to use an "independent contractor" agreement with, and pay the "work orders" with purchase cards.
Purchase Cards should be used for:
- Small purchases
- Non-negotiable purchases
- Standard "consumer" products
- No on-site services are provided in the purchase
When should I use a Consultant's Agreement?
The individual or company is an independent contractor.
See College guidelines on "Employee or Independent Contractor?" When in doubt as to whether the hire is an independent contractor or temporary employee, check with Human Resources, Lauren Turner, x2503, or x3126.
Someone who brings special personal (intellectual) expertise to the College and is not an employee:
- Mary Smith will advise on the best process for us to raise money.
- John Jones will provide expertise on the issue of pond maintenance.
- Sally Marsh will develop a web site for the department.
- Michael Dow will coach the ice hockey club.
See: Template for Consultant's Agreement.
When should I use an Independent Contractor's Agreement?
The individual is an independent contractor.
- See College guidelines on "Employee or Independent Contractor?"
The individual or company is providing physical services to the College. Typically Facilities Management will be managing the contract.
- Outsourced window washing
- Trash removal
- Special cleaning services
- Other special projects, such as construction, renovation, etc.
Special Features: can create one agreement, and "add" to it using "work orders" for repeat services.
Management issues: make sure contract agreement is kept up to date, and that certificates of insurance are filed annually.
For Facilities Management, see: Template Independent Contractor Agreement-FM. Check with Paul Breen for more information.
For Dining Services, see: Template Independent Contractor Agreement-DS. Check with John Fortini for more information.