| Initiating body: | Purchasing |
|---|---|
| Contact: | Purchasing, 438-7611 |
| Revised on: | 11/2001, 05/2003 |
Two party agreements establish a contractual agreement for one-time or short duration services with individuals (such as guest speakers, entertainers, consultants, etc.). The Two Party Agreement form , available from the Purchasing Office, contains State required clauses.
These agreements are to be used for independent contractors. Before any performance of services, campus units contracting for personal/professional services must assess the relationship with the individual provider to ensure that individuals hired or contracted to perform services are properly classified. The designation of an individual's status as an employee or Independent Contractor is the responsibility of the employer (see policy 3.1.26 Employee vs. Independent Contractor).
All agreements should contain a precise statement of what service the provider is to render, the provider’s social security number, individual taxpayer identification number, or federal employer identification number, and the provider's status for being present in the United States (i.e., citizen, immigrant, non-immigrant). Exception: Payments to nonresident aliens for tax purposes for services performed outside the United States are not subject to U.S. withholding or reporting, and can be paid as Independent Contractors regardless of the nature of service.
Non-United States citizens who are non-immigrants may be hired as consultants and may receive compensation and/or expenses only if permitted by their immigration status set forth by the U.S. Immigration and Naturalization Service.
Agreements for $2,500 or less per fiscal year must be signed by the Budget Officer (fiscal agent) and the service provider prior to the beginning of service. Departments should submit a voucher with a copy of the agreement attached to request payment.
Agreements over $2,500 must be attached to a requisition and mailed to 1220 Purchasing. An agreement is not required with a requisition, but may be desirable in order to clearly define specific terms of the contract and obtain the concurrence and signature of the vendor. Agreements over $2,500 are not binding until they have an authorized signature from Purchasing. Purchasing will issue a purchase order and will process the voucher for payment on agreements over $2,500.
Professional and artistic contracts $20,000 and over must be advertised for 14 full calendar days in the Illinois Public Higher Education Procurement Bulletin on the Internet. They may also need to be sealed bid. Contact Purchasing (438-7611) for further information.
Agreements over $25,000 must be approved by the President’s Office to be binding.
