Contracts FAQs

Q. When do I need a formal contract with a company/individual?

A. In determining whether a contract is required:

  1. First, look at the amount of the fee (excluding travel). If the fee is $2,499 or less, no contract is required unless there are terms or conditions or signatures required (see item 3).
  2. If the fee is $2,500 or more, determine if the service is professional, consulting, or non-professional.
    • Professional services are usually performed by an individual with an advanced degree (PhD, MD, architect, engineer, lawyer etc).
    • Consulting Services will include independent contractors or other individuals who possess a high degree of skill in their field. If the fee is $2,500 or more for either professional services or consulting, a contract is required. Note that no differentiation is made between whether payee is a company or individual. The same rules apply.
    • Non-professional services are usually performed by individuals without an advanced degree and include lawn care specialists, janitorial services, window cleaning, etc. If the fee is $7,500 or more, a contract is required.
  3. If there are terms or conditions or a signature is required, a contract is always required.

Q. Are contract templates available for me to use?

A. Yes. Download various contract templates.

Q. What is the difference between a contract and a fee for service agreement?

A. UAB's Procurement Office has recently changed the nomenclature for most formal agreements with external entities (company/individual) from contracts to fee for service agreements. The words can be used interchangeably, but the contracts themselves are worded as fee for service agreements.

Q. If the company/individual requires a cash down payment or deposit, do I need a contract?

A. Maybe. If the total amount to be paid (including deposit) is above the appropriate contract threshold, a contract is required. If not above the threshold, a contract would not be required UNLESS a signature is required or there are terms and conditions.

Q. When do I need an Event Approval Form?

A. An Event Approval Form is required whenever UAB will be sponsoring an event whether or not any UAB funds will be spent or a non-UAB sponsored event when UAB funds will be spent. It does not matter whether the event is occurring at UAB or at a remote location.

Note: An Event Approval Form is not required if the event is an official UAB event oriented towards students/trainees, endowment-funded lectureships, or ticket events.

Q. If I have an approved Event Approval Form, do I also need a contract?

A. This depends on the situation. If the event is sponsored by UAB and occurring at UAB, then a contract would not be required. However, if the event is occurring at a location other than UAB, a contract might be required if it meets or exceeds the UAB contract thresholds amounts OR there is a formal agreement that requires a signature.