Introduction
The following information regarding contract procedures has been provided by the Office of the Vice Chancellor, Business Services of the South Orange County Community College District.
Before you process a contract, agreement or memorandum of understanding (MOU), consider the following first:
How to Process Consultant or Contractor Contracts under $100,000
1. Fill in the contract. (A sample contract is provided at the end of this section). Be sure to enter the requisition number on the contract. Contact Vice Chancellor’s Assistant at the District office, if you have any questions.
To find the current Independent Contractor form look in the SOCCCD SharePoint site: https://sharepoint.socccd.edu/ > Business Services > Purchasing>Contracts and Guidelines.
Contracts, agreements or MOUs may come in many different formats and should be reviewed carefully before submitting to the Vice Chancellor for signature. In some cases, legal review of the document may be necessary. If so, the Vice Chancellor of Business Services office will assist you in the legal review process. However, if you use the district approved contract (sample attached), no legal review is required.
Note: 1) All blanks must be filled in, and 2) indicate all places that a signature is needed.
2. Initiate a supplier contract in Workday per the instructions in Workday training materials. This may be saved in “draft” form until a fully executed contract can be attached to the supplier contract for submission in Workday.
3. Complete a Contract Approval Cover Page. This page is available on the District’s Sharepoint site at the following link: Contract Approval Cover Page
4. Submit the contract and cover sheet to the Office of the Vice Chancellor of Business Services in accordance with the routing instructions noted on the Contract Approval Cover Page. The contract will be signed by the Vice Chancellor and mailed to the consultant or contractor. When the document is fully executed by the district and the consultant, a copy will be returned to the initiator and the original will be filed in the District Business Office.
5. A fully executed copy of the contract can be attached to the draft supplier contract and submitted in Workday.
6. Submit the invoice(s) to Accounts Payable for payment as per agreed upon schedule shown in contract. When processing invoices, ensure the following rules are adhered to:
7. Itemized receipts are required to reimburse the consultant for any expenses. Keep in mind that:
How to Process Consultant or Contractor Contracts of $100,000 and Over
CRITERIA FOR DISTINGUISHING BETWEEN EMPLOYEES AND INDEPENDENT CONTRACTORS
A frequent source of confusion is the criteria that should be used in distinguishing whether a person performing services is an employee or a consultant (independent contractor). The Common Law Rule used by the Internal Revenue Services and Social Security to determine employee/employer relationships states:
“A Worker is an employee under the common law rules if the person for whom he works has the right to direct and control him in the way he works, both as to the final results and as to the details of when, where and how the work is to be done. The employer need not actually exercise the control; it is sufficient that he has the right to do so. Where the employer does not possess that right, the individual involved is an independent contractor, not an employee”.
In addition, the following is a list of some of the factors that might be considered:
NOTE: An assignment of a District employee who agrees to perform additional services is to be processed as an employee for all purposes, even if the additional services are not related to regular duties. If, however, a regular employee maintains a formal consulting firm or is a member of a company or consulting firm, he/she may work as such and be compensated through the outside vendor. In such cases, the employee must be prepared to validate that their relationship with an outside vendor is legitimate. If the person is a retiree, he/she must be prepared to validate his/her independent contractor status or be subject to losing his/her retirement status if the maximum allowed earnings as an employee is exceeded.
INDEPENDENT CONTRACTOR AGREEMENT This Agreement is made and entered into this __________ day of __________ , _________ between: Requisition No. South Orange County Community College District hereinafter called DISTRICT, and Contractor Name
WHEREAS, the DISTRICT is authorized by Section 53060 of the California Government Code to contract with andemploy an independent contractor specially trained to perform special services required; and WHEREAS, the CONTRACTOR is specially trained and experienced and competent to perform the special servicespursuant to this agreement. The parties agree as follows: The period of this Agreement shall be effective from _______________________ to _______________________ and may be modified bymutual agreement of the parties. The DISTRICT shall have the discretion to terminate this contract byproviding CONTRACTOR 30 days prior written notice. The CONTRACTOR shall, at times and places designated by it and acceptable to the DISTRICT perform thefollowing services: The DISTRICT shall pay the CONTRACTOR $_________________________ per hour, not to exceed $__________________________ . The DISTRICT will pay expenses in the amount of $__________________________ . The total contract amount is $_________________________ (including expenses). Upon completion of the services provided for hereof and upon a signedinvoice acceptable to the DISTRICT and approved by payment will be made. The DISTRICT shall not be liable to the CONTRACTOR for personal injury or property damage sustained byhim/her in the performance of this contract, whether caused by himself/herself, the DISTRICT, its officers,agents or employees, or by any third party. CONTRACTOR agrees to and does hereby indemnify, holdharmless and defend the DISTRICT and its governing board, officers, employees and agents from everyclaim or demand made and every liability, loss, damage or expense, of any nature whatsoever. While performing service hereunder, the CONTRACTOR is an independent contractor and not an officer,agent or employee of the South Orange County Community College District inclusive of Saddleback Collegeand Irvine Valley College. Neither party shall assign this Agreement or any part thereof without the written consent of the other party. WITNESS the parties hereto the day and year first above written: Contractor: South Orange County Community College District Signature: Signature: |
Contract Form Approved by Schools Legal Service, Orange County Department of Education (02/02/2002)