Contract Review

In accordance with Regents' Business & Finance Bulletin BUS-63, the Office of Risk Services reviews and approves the insurance and indemnification language in campus contracts. 

NEW!

The Business Contracts & Brand Protection Office has developed a CONTRACTING PORTAL that serves as a "one stop shop" for information about campus contracts and agreements. CLICK HERE to learn more about the campus contracting process.

Who Can Sign Contracts

Unless you have delegated authority, you MAY NOT sign contracts!

Here is a list of offices delegated to sign the most common types of contracts on behalf of The Regents:

Type of ContractDelegated Authority
Direct-to-Vendor Requisitions (low-value purchases) Departmental Business Officers
All Other Purchase Orders Supply Chain Management
Business Contracts Business Contracts and Brand Protection
Affiliation Agreements with Other Academic Institutions Executive Vice Chancellor & Provost
Construction Contracts Real Estate Construction & Design
Research Contracts with Government Entities and Private Non-Profits Sponsored Projects
Research Contracts with Private Commercial Entities Industry Alliances
Leases and Facility Use Permits Real Estate Services
Travel and Entertainment Contracts Supply Chain Management

Waiving the Insurance Requirements in Contracts

Only Risk Services has authority to reduce or waive the insurance requirements in contracts.

Waiving insurance should be a last resort, as it may expose the University to unrecoverable losses. Here is an explanation of the University's preferred insurance requirements and practices. (Our thanks to Janny Peng in Campus Shared Services for her work in developing this form!)

Requests to reduce or waive insurance requirements should be sent to Risk Services at least TWO WEEKS BEFORE the contract-related work commences. When deciding whether to reduce or waive insurance, we look primarily at the nature of the activity. We do NOT consider the size of the contract; small contracts can lead to big liabilities!

Risk Services does not reduce or waive insurance requirements after-the-fact. By failing to obtain the insurance coverage required by University policy, the contract signer has put the University at risk, and claims or lawsuits related to the contract may be filed up to three years beyond completion of the work.

That said, Risk Services hereby delegates to campus purchasing officers the authority to reduce or waive insurance requirements for certain minimum-risk contracts IF THE CONTRACT WITH THE SERVICE PROVIDER MEETS ALL THE FOLLOWING CONDITIONS:

  1. The service has not yet been provided.
  2. The contract is between an academic/research/administrative unit/department and the service provider.
  3. The service provider is EITHER speaking at a campus event where the department is providing direct on-site supervision by an employee acting within the course and scope of employment OR is providing one or more of the following services under the direct supervision of an employee acting within the course and scope of employment: copy editing, assistance to a disabled individual, or translating presentations in real time.
  4. The service provided does not include a demonstration, physical activity, transportation, interaction with minors, or other element that may create liability.
  5. The services provided cost less than $4,999.
  6. The service provider has not contracted with the campus for a total of $4,999 or more during the current calendar year.
  7. All other standard University requirements for executing a contract of this type are met.
  8. The following indemnification clause is included in the contract and accepted by the service provider without modification:

[NAME OF SERVICE PROVIDER] shall defend, indemnify and hold THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, its officers, employees and agents harmless from and against any and all liability, loss, expense, including reasonable attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of [NAME OF SERVICE PROVIDER], its officers, agents or employees.

Use the Insurance Waiver Review Form to show that the activity is fully qualified for an insurance waiver under the above terms. Retain the form for at least three years beyond the date of the transaction.

NOTE: Insurance waivers granted by purchasing officers are subject to audit. Violation of the above conditions may result in suspension of this delegation and may subject the violator to disciplinary action.