Frequently Asked Questions
Who can sign contracts on behalf of the System?
The Chancellor has up to $100,000 delegated signature authority. Vice Chancellors and Presidents have up to $50,000 delegated signature authority. The Vice Chancellors and Presidents, if they desire, can delegate signature authority to a staff member for less than $25,000 by filling out and signing the "Delegation of Authority Memorandum" form. This form, once completed should be forwarded to the Office of the General Counsel (OGC) and to Purchasing.
What is a standard agreement?
Standard agreements are agreements created and approved by OGC. These agreements may be used by LSC departments without further OGC approval, unless modifications are made to the agreement, in which case it becomes a non-standard agreement and will require review and approval by OGC.
Which standard agreement is appropriate for my situation?
The "Descriptions of Standard Agreements" may be found on the Standard Forms and Contracts page of the Contract Compliance website. This link provides a description of the standard agreements. If after reviewing, you are still not sure which agreement to use, you can contact OGC and we can help you determine which is the correct agreement to use.
What language provisions should I watch for in a contract?
- LSCS Board Policy does not allow agreements with a term exceeding five years.
- LSCS, as a Texas institution of higher education, is unable to "indemnify" other parties.
- As a general rule, LSCS avoids arbitration or other dispute resolution processes, and instead follows the dispute resolution process outline in Section 2251 of the Texas Government Code.
- If a vendor is providing a service on LSC property, typically LSC will require the vendor to have insurance coverage in place.
- Contracts should contain sufficient detail to avoid confusion. A proper example of a "payment provision" might be: "For the services provided under this agreement, LSC will pay Contractor a fee not to exceed $10,000.00. Payment will be made within 45 days of receipt of proper, detailed invoices."
How do I get a contract approved?
Contracts are certified by the appropriate party through ServiceNow. Once certified the documents will be reviewed by LSC counsel for compliance and approval. Once approved, agreements will be routed back to the originator to obtain the proper signatures.
Which type of contracts require approval by the Office of General Counsel?
Any contract or written agreement which is not a Standard Agreement. These agreements are referred to as "non-standard" and are usually provided by vendors, contractors, and other parties.