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Contract Administration

SECTION:  Index E - Purchasing


This policy was created to comply with Board of Regent Policy 55.01 and Board of Regent Policy 53.04, UH System Administrative Memorandum 03.A.05, and applicable state and federal statutes, regulations and directives. The purpose of this policy is to provide guidance and procedures for the proper administration of contracts, executed on behalf of the University of Houston-Victoria for and on behalf of any unit of the University. Excluding certain exceptions, this includes any contract that is binding upon the University and to which the University is a party or signatory in any capacity, regardless of the funding source, amount of funds expended or generated, and whether or not remuneration, either monetary or in kind, is involved.

It is University policy that:

NOTE:  For further information and links to State and System policies, see Reference section at the end of this policy.



Approve as to form: The UH Office of General Counsel requires review of non-standard contracts prior to execution and approval, for proper form and legality including compliance with applicable state law, constitutional requirements and Board and System policy. 

Consulting services: To advise or study and provide a written or oral report in regard to an existing operation or proposed project or other undertaking. Consulting services do not include services connected with the routine work necessary to the functioning of the University’s programs or certain professional services defined in Texas Government Code, Section 2254. A consultant generally does not provide any finished product other than an oral or written report. 

Contract: A legally binding written agreement usually of a business or administrative nature entered into by two or more parties. Money does not have to be the consideration between the parties to create a contract. 

Execute:  Acceptance of the contract terms and conditions is evidenced by the signing of the contract by authorized individuals representing each party to the agreement.

Professional services: Those within the scope of the practice of accounting, architecture, optometry, medicine or professional engineering or those performed by any licensed or professional engineer in connection with his/her professional employment or practice. Professional Services are defined fully in Texas Government Code Chapter 2254. 

Sponsored activity: Includes research and development projects which usually involve the preparation of specialized contracts such as grants, sub recipient agreements or sub-contract agreements with other entities, including outside consultants and other service providers. 

Uniform or standardized agreement: Contractual agreements that have been previously reviewed and approved as to form and legality by the Office of General Counsel, and denoted by OGC-S-XXX. These uniform agreements, also referred to as standardized agreements, may be used by components without further OGC review and approval.



Common Types of University Contracts

University contractual agreements include but are not limited to purchasing, contract services, Interlocal agreements, cooperative agreements, memorandums of understanding, interagency contracts, grants and grant sub-recipient agreements, software licensing agreements, consortium agreements, professional services agreements and consulting agreements. Contracts are classified as either standardized contracts or non-standard contracts.

These procedures do not include the following types of agreements:

Internal Reviews Required

All contracts require institutional review from other than the originator. This review includes at a minimum, review by the unit head and the Department of Business Services. Other internal reviews may also be indicated.

Legal Review Required of Contracts

Many legal documents impose binding obligations upon the University, some with significant liability and financial consequences. Board Policy 55.01 requires that the Office of General Counsel (OGC or Counsel) review and approve as to form all contracts before execution. However, OGC may approve uniform or standard contracts which, thereafter, may be used without additional review and approval, providing that no changes or alterations have been made to the contract and the contract does not require board approval.

Summary of Originating Unit Responsibilities

The originating unit assumes primary responsibility for a contract, from inception to completion, and is responsible for the following:

  1. Reviewing the business terms and conditions to ensure that those terms are reasonable, proper, clearly defined and in the best interests of the university:
    • the scope of work should be detailed enough so that all expectations are clearly set forth;
    • term may be written up to five (5) years;
    • the date(s) that services are to be performed or concluded need to be stated;
    • the amount of payment and conditions for partial payments, if any, explained
    • reimbursable, if any, should be defined by type and amount for each;
    • the agreement should have a cancellation/rescheduling provision if appropriate.
  2. Checking the vendor status with the State of Texas and/or PeopleSoft prior to contract execution. If the contractor is not in good standing with the State, contract processing will be delayed until the contractor’s status is in good standing. The originating unit may choose to contact the contractor directly to make them aware of the problem.
  3. Preparing a contract coversheet and submitting appropriate documentation for each contract, regardless of the dollar amount or source of funds:
    • if an OGC standard agreement will satisfy needs and accepted by Contractor, complete and submit the contract coversheet. Business Services will prepare the appropriate standard agreement or may delegate to the department/school;
    • if the contractor’s agreement must be used, an electronic version is preferred, or submit an original of the completed but unsigned agreement to Business Services with a contract coversheet and page 2 contract certifications with departmental signatures and initials as required;
  4. Allowing sufficient time for the contract to be reviewed and executed in a timely manner in advance of start date.
  5. Ensuring that services and/or delivery of goods do not start until the contract has been properly reviewed and executed.
  6. Adhering to prompt payment law whereby payment is due on the 30th day after the latest of: 1) the date the department receives the goods; 2) date the performance of the service is completed; or 3) date the agency receives an invoice for the goods or services. Although there are limited exceptions for paying contractors in advance, this is not good business practice and should be avoided.
  7. If Contractor is not a supplier in PeopleSoft, department will send the PaymentWorks invitation for supplier setup.
  8. Signature on page 2 of the Contract Coversheet or signing the Contract Monitoring Acknowledgement Form indicates responsibility for monitoring of contract performance through its completion.
  9. Reporting promptly any contractual non-compliance to the unit head and Business Services.
  10. Cooperating with auditors, providing requested information to internal and external auditors.
  11. Monitoring of renewals if contracts allow for additional terms.
  12. Requesting department prepares a purchase requisition and Purchasing issues the purchase order for expenditure contracts $15,000 and over to facilitate required state reporting.

Departmental responsibilities during the payment phase include:

Summary of Department of Business Services/Contract Administration Responsibilities

The Department of Business Services responsibilities include:

  1. Advising, assisting and reviewing information submitted by the department to help insure compliance with campus contract policy and procedures.
  2. Reviewing the business terms and conditions (not legal terms) for reasonableness, consulting as necessary with other departments, including Human Resources, Accounts Payable, the System Office of Contract Administration or other offices as appropriate.
  3. Preparing original contracts, amendments or addendums based upon the information and scope of work provided by the initiating department.
  4. Assigning an identification number to each contract, or if responsibility is delegated to the department, Contract Administration will provide a number sequence.
  5. Maintaining a contract administration log sheet and contract file for each contract routed through Business Services.
  6. Tracking the status of pending contracts through execution.
  7. Requesting legal counsel reviews of all non-uniform agreements through UH Office of Contract Administration/Office of General Counsel.
  8. Assisting in the preparation documents (cover sheets, duplication) when Board approval is required.
  9. Having a responsible individual in the initiating department sign off on the Contract Acknowledgement Monitoring or Contract Certification form.
  10. Serving as the university repository for all contracts and supporting documentation, excluding payment vouchers and invoices, and retaining per UH Records Retention Schedule requirements.
  11. Coordinating the execution of the agreement by all parties and then distributing the signed electronic copy, including:
    • one to the contractor(s);
    • one copy to the Office of General Counsel (non-standard contracts);
    • one copy to the originating unit;
  12. Maintaining a Contract Administration website as a resource for departments;
  13. Providing training or coordinating Contract Administration training as needed;
  14. At the discretion of the Contract Administration the requesting department may be assigned the contract management of certain OGC Standard agreements.

Board of Regents Reviews and Approvals

As noted in the UH System Administrative Memorandum 03.A.05, the following contracts must be approved by the Board of Regents in an open meeting:

In order to submit a contract for Board approval, follow procedures as noted in SAM 03.A.05.

Length of Contracts

The duration of any contractual transaction as recommended by legal counsel should not extend beyond a cumulative period of five (5) consecutive years, including all renewal terms.

Contractual Delegation and Signatory Authority

Contracts are legally binding on the System and/or its component universities only upon execution of the contract by the System and/or component university official with delegated contractual signatory authority. In the absence of specific written delegation by the President, employees do not have authority to execute contracts on behalf of the University. Employees who do so can incur disciplinary action and/or financial responsibility for costs resulting from unauthorized contract approval.

These delegations do not waive the need for internal reviews, OGC review, Board approvals and/or Chancellors execution when required, as set forth in Board, System or campus policies. 

NOTE:  Acceptable execution preferred, although original signatures are preferred, legible facsimile or scanned signature copies are acceptable, if both parties agree.

Historically Underutilized Businesses (HUB)

The University will comply fully with the letter and spirit of Texas Government Code, Chapter 2161 of the Texas Government Code (refer to UH System Board of Regents Policy 55.04 and System Administrative Memorandum 03.B.02, and Title 34 Texas Administrative Code, Chapter 20). It is the originating unit’s responsibility to be mindful of campus Historically Underutilized Business goals and make a good faith effort to utilize HUB vendors for contractual services whenever possible. Unit heads should work with the campus HUB Coordinator, the Purchasing Manager in Business Services, to meet these goals.

Designation of Central Contract Repository and Records Retention

Original contractual agreements and all supporting documentation will be retained in accordance with the state approved UH Records Retention Schedule. The Department of Business Services will serve as the central repository for original executed agreements with the exception of employee personnel contractual agreements which will be retained by the Department of Human Resources.

Contractual Amendments, Extensions and Renewals

Amendments, changes, extensions or renewals to an original non-standard agreement must be processed in the same manner as the original contract and may require OGC review. A copy of the original contract must be included with the amendment, change, extension, or renewal at the time the documents are processed for approval with a new or updated contract coversheet, if necessary.

Amendments, changes, extensions or renewals to standardized agreements shall use the OGC approved standardized amendment/extension form.

In some instances, use of an institutional Purchase Order in lieu of a contract for the delivery of goods or services may be preferable.

Audit Clause Required for Certain Contracts

All revenue-generating contracts and all contracts where payment by the University is contingent upon records processed and maintained by another party to the contract shall contain an audit clause. This clause shall give the University the right to access and audit any and all documents pertaining to the contractual relationship held by any party to the contract.

Special Contracting Requirements

Competitive Procurement Requirements are as follows:

Leasing of Space

The Chancellor or designee must approve all leases, regardless of the cost or source of funding. An originating unit that desires to lease space will work through the Department of Business Services. Business Services will work with the UH System Office of Real Estate Services and provide the required information. Department should allow a minimum of 90 days prior to the proposed effective start date for a lease agreement to be executed for existing space. Adequate time is required to develop and advertise lease specifications, evaluate bids or proposals and then finalize an appropriate lease agreement.

Contracts for Consulting Services

Contracts for Professional Services

Contract Reporting Requirements

The University is required to report certain contracts. Purchasing in Finance department is responsible for reporting contracts to the Legislative Budget Board and reporting to the Board of Regents as requested. Reference SAM No. 03.A.05 for details.

Revenue Generating Contracts

Contracts for Outside Legal Services Prohibited

The University cannot initiate or approve contracts for legal services. All contracts for legal services are initiated only by the Office of General Counsel and only after approval has been obtained from the Office of the Attorney General for the State of Texas (refer to SAM 01.D.02, Employment of Outside Legal Counsel).

Electronic State Business Daily

When there is a need for competitive bids, and the expected procurement will be $25,000 or more, regardless of funding source, the University will post a notification on the Electronic State Business Daily (ESBD) for a minimum of 14 days. Purchasing will facilitate required ESBD postings.

Contractor Standing, Indebtedness and/or Tax Delinquencies

The originating department is responsible for verifying that a prospective contractor is in good standing with the State of Texas prior to forwarding a contract to Business Services. If a contractor is not in good standing, a contract cannot proceed. The originating department can advise the contractor that they are not in good standing with the state but it is the contractor’s responsibility to correct any problems. Department is responsible for assuring vendor completed forms for vendor setup in PeopleSoft to expedite contract payments. Department of Business Services will verify vendor is setup for payment in PeopleSoft or accepts credit card payments.

Interagency Agreements (agreements between two or more state agencies)

The University may contract with another state agency for the provision of necessary and authorized services and resources by Interagency Agreement. Statutory authority for interagency agreements can be found in Texas Government Code, Chapter 771. The originating unit shall work with Business Services, who shall prepare the agreement. Whenever possible, the OGC standardized interagency agreement will be used.

Interlocal Agreements (agreements with local governmental entities)

The University may contract with other local governmental entities such as community colleges, city or county government and other types of local governmental entities for the provision of necessary and authorized services and resources by Interlocal agreement. Statutory authority for Interlocal agreements can be found in Texas Government Code, Chapter 791. The originating unit shall work with Business Services in the preparation of the agreement. The standardized Interlocal agreement form will be used whenever possible.

Agreements Associated with Sponsored Research Activities

Agreements associated with grants or other sponsored funding are to be coordinated through the Grants and Contracts Director, Research and Sponsored Programs Department, either using standardized agreements or non-standard agreements approved as to form and legality by the UH Division of Research or the System Office of Contract Administration.

Deviations from Policy

Any deviation or exception from this policy and procedures, where it does not conflict with law, board or UHS policy, must be approved on an individual basis by either the President or the Vice President for Administration and Finance.



  1. Texas Administrative Code, Title 34, Chapter 20
  2. Texas Government Code, Chapter 771
  3. Texas Government Code, Chapter 791
  4. Texas Government Code, Chapter 2161
  5. Texas Government Code, Chapter 2254.021
  6. UH System Board of Regents Policy 55.01
  7. UH System Administrative Memorandum 03.A.05
  8. UH System Administrative Memorandum 03.B.02
  9. UHV Contract Administration Website
  10. President's Letter of Delegation 
  11. Chancellor's Delegation of Authority
  12. UH System Records Retention of Authority


Approved by:

Signature Obtained 01/21/2022
Robert K. Glenn, Ph.D.




Next Review Date:   January 2025   (3 years) 
Origination:   Business Services 


If there are any comments and/or questions regarding this policy, please contact the Director of Business Services.