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MTU Operating Procedures Manual

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Chapter 22. Purchasing
Section 22.5. Agreements and Contracts


22.5.3. Professional Services Contracting


Professional Services: For the purposes of this policy, professional services are: architectural/engineering; attorneys; doctors; drafting/artists services; miscellaneous services, external financial advisors; professional consultants; performing arts; trustee activities; and other services as determined by the interim chief financial officer/treasurer or the manager of Purchasing.

General Information

Contracting with individuals or firms for professional services is handled in accordance with purchasing/human resources procedures. When a professional service is needed, the requestor begins with completion of an independent contractor questionnaire. After review of the questionnaire by Human Resources, a determination of the proper relationship and payment procedure will be made; either as an employee or as an independent contractor. If the relationship is determined as an employee, then the payment will be processed through payroll (refer to Payroll section for procedures). If the determination is as an independent contractor, payment will be processed through a purchase requisition (refer to procedure below).


No commitment on the part of the University will be recognized until a Purchase Order is issued. The requisitioner is responsible for obtaining and processing the required paperwork prior to the start of the service.

No individual has the authority to enter into purchase contracts or in any way obligate the University unless specifically authorized to do so by the president, the interim chief financial officer/treasurer, or the manager of Purchasing. Any such negotiations are unauthorized purchases and the individual may encounter a personal obligation to the vendor.

All professional services chargeable to the University must be authorized by an official University Purchase Order, signed by an authorized individual, before the performance of such service. The use of blanket orders may be required for some agreements and are allowable under this policy.


The department requesting professional services submits the following to the Purchasing Department, along with a purchase requisition (refer to section 22.2.4. Purchase Requisitions for procedures on completing a requisition):

  1. For services to be performed by a firm:

    1. A letter of agreement or contract with the firm outlining conditions of service and payment terms. An agreement or contract initiated by the University must contain a statement indicating that the document does not obligate the University until the vendor has a properly executed Purchase Order.

  2. For services to be performed by an individual in which a determination by Human Resources has been made as an Independent Contractor:

    1. An Independent Contractor Agreement, available from Purchasing's Web site, with an individual. The agreement is to be completed in duplicate by the requisitioning department, signed, and dated by the individual (who also indicates their Social Security number and other applicable information). Both copies attached to a purchase requisition, and submitted to the Purchasing Department. An agreement or contract initiated by the University must contain a statement indicating that the document does not obligate the University until the vendor has a properly executed Purchase Order.

    2. If the individual is a lecturer or performer, then a Guest Lecturer/ Performer form must be included.

NOTE: Services provided by attorneys and auditors are not required to have an agreement or contract. In these cases a Purchase Order will be sufficient.

Adopted: 09/14/2001

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