Contract Process

If you need Procurement Services to process a contract or lease, you must allow Procurement 60 days to do so.  Please note that this policy does not apply to real estate contracts or leases.

Supplier contracts often contain terms and conditions that are inconsistent with, or contrary to Rutgers' legal and business terms and conditions. Therefore, additional advisory is required from other Rutgers units who handle:

• legal terms
• insurance and liability
• leases
• technology 
• marketing and branding

In these instances, we will negotiate with the supplier to arrive at a contract that is

• consistent
• in accordance with Rutgers' terms and conditions
• protective of Rutgers’ interests

Remember, no supplier can begin work or deliver goods until both Rutgers and the supplier have executed the contract, and until a purchase order is issued. Contracts can only be signed by those authorized on the signatory matrix or University Procurement Services. 

Types of Contracts:

There are several types of contracts units may use to enter into an agreement with suppliers.

• Statement of Work (SOW) – a service and/or good that requires a detailed description of deliverables to be rendered. Provide a Statement of Work (SOW) outlining the nature of the purchase; this may also include a quote from the supplier, provided it contains no terms and conditions. Attach the forms to the requisition, then a purchase order will be generated upon approval from Procurement Services.
• Service Agreement or Master Service Agreement – a contract that may result from an RFP or a supplier request. These contracts are negotiated through Procurement Services.
  • Service Agreements: a unit-specific purchase of goods or services with a defined Statement of Work (SOW), including a Price Schedule and Rutgers Procurement Terms and Conditions.
  • Master Service Agreement: a universitywide or multi-departmental engagement with a supplier. Rutgers enters into this contract when the unit repetitively purchases goods or services from the same supplier(s). The agreement must include: 1) a defined Statement of Work (SOW); 2) a Price Schedule (e.g., copiers, office supplies, lab supplies, etc.); and 3) Rutgers Procurement Terms and Conditions.     
• Supplier contract request – when a supplier requests that Rutgers sign a separate contract, which may include a quote containing the company’s terms and conditions. This request requires review and negotiation by Procurement Services.

Guidance for Rutgers Staff Members:

If Procurement Services is required to process a contract or lease, allow Procurement Services up to 60 days for review, negotiation, and completion.  Please note that this policy does not apply to real estate contracts or leases.

Supplier contracts often contain terms and conditions that are inconsistent with, or contrary to, Rutgers' legal and business terms and conditions. Therefore, additional advisory is required from these other Rutgers units:

• Office of the General Counsel (legal terms)
• University Finance and Administration (insurance and liability
• Institutional Policy and Operations (leases)
• Office of Information Technology (technology and systems)
• University Communications and Marketing (marketing and branding)

In these instances, Procurement Services will negotiate with the supplier for a contract that is consistent, executed in accordance with Rutgers Procurement Terms and Conditions, and protective of the university's interests. Please note that no supplier can begin work or deliver goods until both Rutgers and the supplier have executed the contract, and until a purchase order is issued. Contracts can only be signed by those authorized on the signatory matrix or by Procurement Services.