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 all campus contracts. (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 Capital Strategies Contract Administration
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 Development & Portfolio
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.

The University's Business & Finance Bulletin BUS-63 states in Section III.C that "Under the terms and conditions of any contract, purchase order or other agreement, the non-University entity is required to show evidence of adequate insurance coverage by furnishing a Certificate(s) of Insurance indicating compliance with all requirements." The clear intent of this language is to avoid exposure to unrecoverable losses and discourage insurance waivers. Therefore Risk Services gives insurance waiver requests low priority and defaults to denying such requests, regardless of the exigencies a campus unit may be experiencing. 

Risk Services may consider waiving the insurance requirements for independent contractors doing routine, very-low-risk tasks. Examples include: writing that gives the writer access to public information only; simple editing of texts containing only public information; and designing public-facing papers, pamphlets, or brochures on a work-for-hire basis. Risk Services may also consider waiving the insurance requirements for independent contractors working in foreign countries with an underdeveloped insurance infrastructure if the work cannot be done by a contractor elsewhere.

Risk Services is highly unlikely to waive the insurance requirements for independent consultants; for anyone whose work potentially gives them access to network systems or sensitive data; for anyone working with minors; or for anyone providing transportation.

Requests to reduce or waive insurance requirements must be accompanied by a detailed scope of work and should be sent to Risk Services AT LEAST TWO WEEKS BEFORE the work commences. When deciding whether to reduce or waive insurance, Risk Services looks primarily at the nature of the activity. We do NOT consider the size of the contract; small contracts can lead to big liabilities. Nor does it matter if the work is being done off-campus; contracts can lead to big liabilities no matter where they are performed. 

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.

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.