CONTRACTING BASICS

1
CONTRACTING BASICS

• FOR NON-PUBLIC SCHOOLS
• Presented by Elaine Holt, CPPO
• Contracts and Procurement Manager, PPS

2
Overview

• Why contract?
• Contract must haves
• Planning for a Contract
• Statement of Work
• Payment Terms
• Contract Administration and disputes

3
Why Contract?

• Protection for you and your school
• Allocation of business risks
• Effective tool when business needs are not being
  met by the Contractor.

4
Planning for a Contract

• Four Basic Questions
• What do you want ?
• How do you know if you got it?
• How much will you pay for it?
• What happens if you dont get it?

5
Contract must haves

• Both Parties are named use legal names
• Start and end dates
• Effective Date and Termination Date
• Scope of Work
• Payment Terms
• Signatures

6
Other must haves

• Early termination
• Remedies
• Protection from risk
• Indemnification and Hold Harmless
• Insurance

7
Statement of Work

• This is the narrative description of the services
  or goods provided, when they will be provided,
  the quality and quantity and by who.
• In some contracts there is a recitals portion
  that answers the question, Why are we buying
  this? in the PPS contract, this is rolled into
  the Statement of Work

8
The maximum total payment

• This amount must include everything.
• Contract payments cannot exceed this total.

9
Payment for Work

• Need more than the lump sum
• Determine a unit of pay and a rate for that unit.
  
• Example 75 per hour
• 1000 per day of training
• Determine a list of reimbursables

10
Reimburseables Dont be a sucker
What is acceptable?

• Copies?
• Printing?
• Signage?

• Mileage?
• Lodging?
• Meals ?

11
Contract Example

• Tutoring Services

12
Contract Administration

• Contract administration is as important as the
  contract itself.

13
Contract Disputes

• Address problems immediately
• Use remedies supplied in contract
• Terminating is last resort

14
Questions ?