Contract Process

We know that the process of contracting with individuals and organizations through Stanford can be complex, so we've created this roadmap to provide an overview of the process and address common questions.

Understanding Contracts

What is a contract?

A contract is a formal agreement between two or more parties that documents the terms of their business relationship. It clarifies each party's commitments and helps prevent misunderstandings. Contracts may include components like pricing, deliverables, duration, and legal terms addressing issues such as indemnification, data security, and intellectual property ownership.

When do I need a contract?

Contracts are generally required when hiring a non-Stanford individual or organization to perform a service for Stanford using Stanford funds. This includes all work with international vendors, regardless of the amount.

Why go through this process?

When an individual, business unit, school, or department would like to hire a non-Stanford, outside company or individual to perform a service for Stanford using Stanford funds, a signed contract is generally required. Per Stanford policy, contracts are required for all work conducted with individuals performing work in a foreign country as an independent contractor, regardless of the amount.

When should I start the contract process?

Begin the contract process as soon as you receive your award letter and have clarity on your project needs and before starting your project. It can take approximately two months to set up a contract. You’re welcome to consult with the King Center before applying to ensure a smooth start.

Please note: You cannot begin your work until your contract is approved. Starting any project without an approved contract exposes you to liability issues, including legal and financial risks. It’s crucial to adhere to this policy to protect both yourself and Stanford throughout your project.

Are there differences in the process for contracting with an individual versus a company?

Hiring an Individual: If you’re hiring an individual with your GSRF award, the contract must be set up through Upwork. This ensures compliance with university guidelines and simplifies the process.
Hiring a Company: For companies, contracts should be processed through the standard contracts system.

What can I do to manage this process efficiently?

Stay available to answer any queries from the King Center to avoid delays.
Be proactive in communicating with your supplier, especially if they are international.
Keep records of all agreements and communications.

Contracting with Organizations

1. Submit the Disbursement Request Form: Officially request your funding and provide a budget plan for the project.

2. Schedule a Meeting: Meet with the King Center Programs Team (kingcenter_programs@stanford.edu) to explain your plans for the project and address any questions you may have.

3. Submit the Contract Request Form: The form will ask you to provide the following information.

Requester and supplier contact information
GSRF awardee unique ID
Project details (dates, location)
High-risk data information
Independent contractor checklist
Statement/Scope of work (SOW)
Contract amount estimate (the amount you agree to pay from your Graduate Student Research Funding directly to the non-Stanford organization or an individual. Your total project cost might be higher if you have other funding sources.)
Faculty mentor’s approval
Estimate/quote from the service provider
King Center funding award letter
Additional details on data security and human subjects (IRB) if applicable

Please note: A fee of $35 will be charged to the student's PTA for each invoice submitted via wire transfer. Please plan accordingly and include this in your budget.

4. Supplier Verification and Set-Up: When filling out the contract intake form, you’ll be asked if your supplier is already in Stanford's system. If you are unsure, provide whatever information you have, and the King Center will confirm their status. If the supplier is not in the system, they will need to be set up, which can take additional time (approximately 2 weeks).

5. Contract Review: The King Center will submit the contract request for review by the university's Procurement Services Contracts team. This review typically takes 3-4 weeks and may be extended depending on the complexity of the contract or responsiveness of the student and the supplier.
Please note: Specific contract terms may necessitate extra time, particularly if high-risk data is involved. The volume of requests during fiscal year-end (August-September) can also slow down processing times.

6. Contract Execution: After approval, the contract is sent to the supplier for signature. The supplier will find the PO number in the top corner of the front page of their agreement, as well as in the invoice provisions. Students will receive the PO number from the KC Programs Team. The PO number must be included on all invoices for payment processing.

7. Payment Processing: After the contracted work has been completed, the vendor will submit their invoice to you. If you approve the amount and the deliverables, you will submit the invoice using the Invoice/Upwork SOW Submission form. Once the King Center receives the invoice, we will upload it to accounts payable for payment and the payment will be processed within 30 days.

Hiring Individuals Through Upwork

Upwork is an online platform that allows you to hire freelancers for tasks such as research assistance, data transcription, or data collection in countries around the world. The King Center has a business account with Upwork, streamlining the hiring process for non-Stanford affiliated individuals.

Benefits

Efficiency: Faster setup compared to traditional contracts
Simplicity: Access to qualified freelancers easily
Cost-Effective: Competitive pricing, but be sure to account for Upwork’s service fees in your budget

Steps to Set Up an Upwork Contract

1. Identify Your Needs: Identify the tasks you require assistance with, such as data collection, document translation, fieldwork, or other specific activities for your Statement of Work (SOW).

2. Submit Disbursement Request Form: Officially request your funding and provide a budget plan for the project.

3. Schedule a Meeting: Meet with the King Center Programs Team (kingcenter_programs@stanford.edu) to explain your plans for the project and address any questions you may have.

4. Submit the Contract Request Form.

5. Reach Out to Upwork: Discuss your project requirements with Deepak Shadrach (deepakshadrach@upwork.com).

6. Invite Your Contractor: Have the individual you wish to hire create an Upwork account and share their profile with Deepak.

7. Create a Statement of Work (SOW): Work with Deepak to outline project details. He will send you the completed SOW which needs to be submitted here. For more information on payment methods, please refer to this Upwork help article. The King Center Programs Team will then request a purchase order (PO) using the SOW.

8. Payment: Upwork will pay the individual and invoice Stanford; the King Center will pay using your GSRF award.

Frequently Asked Questions

Payment Methods and Disbursement Policies

Q: Can’t I just get my research funds as a stipend and pay my vendor cash?
A: Graduate Student Research Funding provided by the King Center must follow all applicable Stanford policies, including the IRB approval process, etc. While a stipend can be used to cover individual travel and living expenses, research activity involving a non-Stanford entity requires a formal agreement (contract). Contracts not only safeguard students from the risks of handling and distributing cash, they align with Stanford policy ensuring transparent, accountable, and compliant financial transactions.

Q: How should gift cards and Meta Ads be paid—via contract or stipend disbursement?
A: Depending on the amount it can be done in different ways. Please contact kingcenter_programs@stanford.edu. For certain online platforms like Meta, disbursement via stipend is the only option.

Q: Do I still need to submit a Disbursement Form if I’ve submitted the GSRF Contract Request Form?
A: Yes, the Disbursement Form is required to officially request and track the funds in our system.

Q: I received my award before April 2023 and there was no mention of contracts at that time. It looks like the policy for disbursement has changed. Do I have to set up a contract or am I exempt since I received funding earlier?
A: No one is exempt if they would like to hire a non-Stanford, outside company or individual to perform a service for Stanford; a contract is generally required. Per Stanford policy, contracts are required for all work conducted with international vendors, regardless of the amount. The requirement to go through contracts is not coming from a change in King Center policies, but we are now assisting students in complying with university policy.

Vendor Selection and Approval

Q: How do I identify a supplier for my project?
A: If you do not already have an established collaborator, leverage your faculty advisor or PI’s existing relationships/contracts, or those of others at Stanford working in similar areas. It may be possible to add your project through a contract amendment if their connection is already a supplier in the Stanford system.

Q: Can I change my vendor choice before the King Center funds are transferred?
A: Yes, you can change the vendor before the contract request is submitted. However, changing vendors requires restarting the entire supplier setup process, which can cause delays. It's strongly recommended to finalize your vendor choice before initiating the supplier setup.

Q: My supplier is going through the process of being set up in the Stanford system and told me they do not have an adequate Certificate of Insurance (COI). What should I do?
A: Contact the King Center Programs Team (kingcenter_programs@stanford.edu). Stanford collects Certificates of Insurance (COI) to ensure that suppliers meet the minimum insurance coverage required of all suppliers doing business with Stanford. In some cases, this requirement might be subject to an exception. However, only the Risk Management Office can approve an exception to the COI amount.

Q: Do I need a new contract if I've worked with the same vendor before?
A: If a new contract is a continuation of the previous contract, then the purchase order (PO) can be amended (only the date and amount can be changed). If the new SOW significantly differs from the original, the contract cannot be amended.

Timing

Q: Why does the contract process take so long?
A: Setting up a contract is a multi-step process involving various Stanford departments. Certain contracts may require review by other departments (e.g., the Office of General Counsel, Global Business Services or Office of Technology Licensing) or pose unique circumstances/risks, which may affect processing time. Contracts with consultants or hosting services will require a review of data risk by the Information Security Office (ISO) and University Privacy Office (UPO). Additional contract terms may need to be incorporated into contracts when the supplier performs a service function or activity that may involve the use, access, transfer, or storage of moderate or high-risk data. Fiscal year end (August-September) generally sees a significant increase in the volume of contract requests and can also impact processing time.

Q: Is there anything I can do to speed up the contract process?
A: Start early and be prepared. Be available to reply promptly to all requests for information from the King Center Programs Team. Most importantly, work with your supplier, especially international entities, as they might have difficulty accessing Stanford systems or have questions regarding the documentation required by Stanford.

Q: Can I start the contract process before obtaining the IRB?
A: Yes, you can begin the contract process if you include a written explanation in the GSRF Contract Request form detailing why the IRB has not been acquired yet.

Compliance and Documentation Requirements

Q: What is the Independent Contractor Checklist (ICC)?
A: This checklist provides guiding questions to help determine if you will need to pay a consultant as an independent contractor or an employee. Please see the ICC form.

Q: What is the Statement of Work (SOW) form?
A: The Statement of Work (SOW) form is often also referred to as the Scope of Work. It is intended to be a general description of work being performed for a specific project or contract. Please see this sample of a SOW for a research project and a filled out example.

Q: Do I need an IRB, and how do I obtain it?
A: If your project does not involve interviews or activities with human subjects, an IRB may not be required. However, it is recommended to obtain one as a precaution. To do so, submit a Protocol Application to the IRB.

Contract Modifications and Budgeting

Q: Can I amend my contract?
A: Yes, you can amend your contract after your contract is executed in the first place. However, this does take time. Please reach out to the King Center Programs Team (kingcenter_programs@stanford.edu) and discuss any changes as soon as possible. The information that can be amended on a contract includes deliverables date, payment source, and contract amount. If the scope of work is changing significantly, a new contract may be required.

Q: What if I don’t know the exact amount for the contract? Is it better to have a contract for too much or too little?
A: Having a rough estimate of taxes, surcharges, payment for services, etc. is best. It is time-consuming to amend a contract to add additional funds, so it is better to have the contract for the higher estimate. NOTE: If you are planning to take some of your Graduate Student Research Funding award as a stipend you may consider not requesting the stipend right away to leave funds available for a contingency.

Q: How can I determine what amount is appropriate for the contract?
A: Please consider taxes, surcharges, and additional days that may be required that may add to the overall cost of the project. We suggest you consider adding a contingency amount to the budget.

Special Funding and Project Completion Circumstances

Q: What if I have other funding for this project in addition to my King Center Graduate Student Research Funding?
A: If you have other Stanford funding, we can add this to your contract; however,you will need to provide the funding information and account number(s) (aka PTAs) for all funding sources for your project. Any outside funds that do not have a Stanford-assigned PTA cannot be used in a Stanford contract. You need to work with any outside funding organizations on how to apply their funds to the project. If you have questions about using multiple funding sources, please contact the King Center Programs Team (kingcenter_programs@stanford.edu).

Q: What if I have not fully finished my project and I am graduating?
A: Please note that you only have access to King Center funding in the quarters in which you are enrolled; if you graduate, your funding ends at degree conferral.

Q: What happens to unused contract funds?
A: If both parties agree the project is completed satisfactorily and there is money left on the contract, the King Center Programs Team will close out the contract. The remaining balance will then be available to you to be used towards other expenses in your proposal (e.g., your travel costs, purchase of data, etc.), or if those expenses are covered, you can let the King Center know to close out your award and release the funds to be used for future Graduate Student Research Funding Awards.

Upwork and Hiring Independent Contractors

Q: Can I tell Upwork to pay my independent contractor with cash?
A: Upwork does not compensate contractors with cash payments. For more information, please contact the King Center Programs Team (kingcenter_programs@stanford.edu).

Q: How would taxes be handled if I use Upwork to hire an independent contractor?
A: If you use Upwork to hire a contractor, Upwork will deduct any fees and handle the tax process directly with the RA. Taxes will be taken out of the total amount allocated, and you won’t be personally responsible for managing or paying any taxes.

Contact Information and Support

If you have questions, reach out to kingcenter_programs@stanford.edu.

Helpful Links:

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