Is a Contract Necessary?Step 7Step 6Step 5Step 4Step 3Step 2Step 1

Goods or Services?

Finished (ready-made) Goods

Contract is Needed

Any Complex Delivery, timing, or does cost

exceed $500?

Contract is Needed

Contact is NOT Needed

Services

On or Off Site?

Do services provide

physical or intellectual

product?

Do any of the services entail any

risk?

Is the Value ≤ $500?

Contract is NOT Needed

Contract is Needed

Contract is Needed

Contract is Needed

Contract is Needed

NO

YES

Decide to Purchase a Good or Service (verify

funds are available)

Choose Vendor (using RFP process if

necessary)

Determine if Contract is

Necessary (see flowchart)

Decide What Contract to Use (i.e. BC Form,

Vendor Form or work with GC to

create new document)

Negotiate Document

Contract Reviewed by Department

Chair, Dean, or VP

Send Contract to Director of Purchasing for

review with Checklist

Director of Purchasing

determines and facilitates, if necessary,

additional review and approvals (i.e.

Risk Mgr, IT, GC, etc.)

Phase 1 | First Steps in Contracting

Review/additional negotiation by

GC, RM, IT, etc. is completed

Contract is finalized and sent back to

Department for Signature

Authorized Signatory Executes Contract

Department Sends Signed Contract to

Vendor

Department Receives Signed Contract from

Vendor

Department Creates

Contract File

Department Delivers Copies

of Fully Executed Contract to Director of

Purchasing and GC

Department Creates and

Monitors Calendar of

Obligations and Important Dates

Maintain file according to Document Retention

Policy

Destroy File Pursuant

Document Retention Policy

Phase 2 | Finalizing & Managing Contract