Purchases Requiring a Supplemental Contract
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When a Contract Is Required
While all Stanford Purchase Orders are a form of contract, there are cases where a more explicit and detailed written contract must be bi-laterally executed to clearly define:
- The scope of services and deliverables
- The use and ownership of data or design
- Acceptance criteria
- Special payment terms
- Who specifically will provide the services
- Performance Schedule
- Guarantees / Warranties
- Insurance Requirements
- Terms and conditions from funding sponsor required to “flow-down” to a subcontract.
How Contracts Are Processed
Contracts are executed between the Stanford Purchasing and Contracts Department and the supplier, and in general, follow this process:
- The end-user (school or department staff within the University) initiates a Standard Purchase Order Requisition and secures appropriate department approval.
- The requisition, along with required documentation, is routed to Stanford Purchasing and Contracts Department and is assigned to a Contract Specialist.
- The Contract Specialist writes the contract and sends the contract to the supplier for execution.
- The supplier executes (signs) the contract and returns it to the Stanford Contracts Specialist with proof of insurance and/or bonds, as required.
- The Contract Specialist transacts the contract and approvals in Stanford's ordering system, and provides a fully executed original contract to the supplier and a copy to the ordering department.
