Hiring an Independent Contractor for Personal Services
First, we need to determine if:
- Is the service provider is incorporated? (Will the check be payable to a company?)
- Will the payment for the services exceed $2499 in the calendar year?
- Does s/he work for, or has s/he retired from, for a NC state institution?
- Is s/he a current student of UNCW?
- Is a grant being used for payment?
If “yes” is the answer to the first, we would use a requisition/purchase order and the contract would not be necessary. If "yes" answers the second question, a contract will be required. If “yes” answers the third or fourth questions, we would contact Human Resources. If “yes” to number 5, a requisition will need to be entered and its number noted on the PUR 1.40.
If “no” is the answer to all of the above bullets, we will proceed with the PUR 1.40 form and contract if needed. A combination of the following documents may be required:
- Application for Certification as Independent Contractor (PUR 1.40)
Required for all independent contractors, regardless of the paid amount, the form also completed and signed by Senior Officer and vendor. Please note the form has been updated to accommodate electronic signatures, and now can be easily forwarded via email (you may still print and fax if you do not have Adobe Acrobat.).
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The Contract Contact Purchasing for a current template. If the amount we are paying is more than $2500 in a calendar year, we are required to create a contract. (For amounts less than $2500, it is recommended, but optional.) The contract needs to be signed and dated by the individual we are hiring. On the first page please indicate the name and address of the person, as well as the name of the Contract Administrator, department, and completion date of service. You will also need to complete the Scope of Work (Schedule A) which includes the services that the vendor is expected to perform as well as additional info or specific criteria that you have, whatever you need to include that makes the contract as clear and complete as possible. The fees should be all inclusive. (Hotels, travel, supplies should not be billed separately if at all possible). The sections a, b, & c may be reformatted, edited, or deleted to suit your project. Compensation (Schedule B) should fully detail the rate and schedule for the service provider’s pay. Generally, we pay with one check upon the successful completion of services, net 30. For longer projects we may create “milestones” so in the event you want to make two payments to the vendor, we might have something like: “Fee totaling $3500.00, to be split in two payments of $1750.00. The first payment is to be paid upon the completion of Milestone 1. The balance will be paid once project is completed”
- A copy of each person’s curriculum vitae, resume, or biography. Optional for services below $600, required for larger amounts.
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Sole Source Justification For Personal Services in excess of $5,000, a memo by the UNCW initiator, addressed to the Director of Purchasing Services. This memo will need to justify this contractor as the sole source of the services that s/he is providing and establish that the fee to be paid has been researched and found to be a fair and reasonable in amount.
Once the necessary documents are together, they will go to Human Resources, to the attention of Credentials Verification Assistant, email preissl@uncw.edu, phone 2103, fax 3840. She will review the PUR 1.40, approve, and forward to the Tax Compliance Officer in the Controller's Office. If a grant is being used to pay for the services, the documents will be forwarded to the Program Specialist in the Office of Research Services and Sponsored Programs. The fully approved PUR 1.40 will be forwarded back to the department contact. If not approved, the reason will be noted on the form and it will be returned to the departmental contact.
In the case where a contract is needed, the PUR 1.40 and other supporting documents need to come to Purchasing. They will be reviewed a final time and the contract signed by the Director of Purchasing Services. Once fully executed, copies of the completed documents will be sent to the vendor and the contract’s administrator.
When the time comes for payment, a check request is prepared by the department and sent directly to Accounts Payable with copies of the above documents. In the case of grants, a receiver will be processed, with a copy of the fully approved PUR 1.40 attached.
