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 business 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?

Procurement 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 (or even for zero dollars ($0)), 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 are 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 are 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 University iProcurement 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 documents, agreements, and communications.

Contracting with Organizations

If you plan to use your Graduate Student Research Funding to contract with a non-Stanford organization or individual, please follow the steps below. You may submit up to two contract requests per award. Because contracting can take up to two months, please begin the process as early as possible.

1. Reach out to the Research Programs Associate (RPA): To begin the process for contracting with an organization, email the Research Programs Associate (RPA) at kingcenter_programs@stanford.edu to request a meeting.

During the meeting, the RPA will review the contracting process and walk you through how to complete the Contract Request Form. The RPA will initiate the form and send you a link to complete it.

2. Submit the Contract Request Form: Once you receive the link to the Contract Request Form from the RPA, complete the form and attach a budget for the contract expenses using the expenditures budget template.

Please note there is a $50 fee for each invoice paid by wire transfer. The King Center will cover the wire transfer fees for the first two invoices associated with your award. Any additional wire transfer fees will be charged to your award funds. Please plan accordingly and include these costs in your award budget if you expect to need more than two wire transfers.

In addition to your budget, depending on the type of contract and work involved, you may be asked to provide:

GSRF awardee unique ID
Project details, including dates and location
Statement/Scope of Work (SOW)
Additional information on data security and human subjects/IRB if applicable
Information about high-risk data, if applicable
Estimated contract amount: the amount you agree to pay directly from your GSRF award to the non-Stanford organization; your total project cost may be higher if you are using other funding sources
Faculty mentor approval
Requester and supplier contact information
Estimate or quote from the service provider

3. Supplier verification and setup: The Contract Request Form asks whether your supplier is already set up in Stanford's system. If you are unsure, provide whatever supplier information you have, and the King Center will confirm their status.

If the supplier is not in Stanford’s system, they will need to be set up as a supplier before the contract can be processed. Supplier setup typically takes approximately two weeks, but may take substantially longer depending on the supplier’s responsiveness.

4. University contract review: Once the request is complete, the King Center will submit the contract to Stanford’s Procurement Services’ Contracts team for review. Contract review typically takes three to four weeks, but processing may take longer depending on:

The complexity of the contract
Your responsiveness to questions or requests for information
Your supplier’s responsiveness
Whether high-risk data or other special terms are involved
The volume of requests, particularly during fiscal year-end (August–September)

5. Contract execution: Once the contract has been approved and a purchase order (PO) number has been assigned by Stanford Procurement, it will be sent to the supplier for their signature. The King Center Programs Team will also provide you with the PO number.

The PO number will be listed on the top corner of the front page of the agreement and in the invoice provisions. The PO number must be included on all invoices to ensure timely payment processing.

6. Submit invoices for payment: After the contracted work has been completed, the supplier will submit their invoice to you.

Please review the invoice to confirm the amount and PO number are correct, and that the contracted work and deliverables have been completed. Once you approve the invoice, submit it using the Invoice/Upwork SOW Submission Form.

The King Center will then submit the invoice to Stanford Accounts Payable for processing. Payments are generally processed within 30 days of receipt by Accounts Payable.

Hiring Individuals Through Upwork (Uplifted)

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

Benefits

Efficiency: Upwork can provide a faster and more streamlined process than a traditional contract with an individual.
Simplicity: The platform handles onboarding and payment in compliance with local regulations.
Global access: You can identify and hire qualified freelancers around the world.
Cost-effective: Competitive pricing, but be sure to account for Upwork’s service fees in your project budget.

Steps for Hiring Through Upwork

1. Identify your needs: Before beginning the contracting process, clearly define the work you need the freelancer to complete. Examples include:

Research assistance
Enumeration or data collection
Translation
Other project-specific research activities

Having a clear description of the work, expected deliverables, timeline, and estimated budget will help you develop your Statement of Work (SOW) (see step 4) and identify an appropriate freelancer.

2. Review the Upwork Guide and meet with the Research Programs Associate: First, please review the Upwork Guide.

Then email the Research Programs Associate at kingcenter_programs@stanford.edu to request a meeting to explain your plans for the project and address any questions you may have.

During the meeting, the RPA will go over the Upwork contracting process and walk you through the Contract Request Form and Upwork Scope of Work document. The RPA will initiate the form and send you a link to complete it.

3. Complete the Contract Request Form and finalize the Upwork Statement of Work (SOW): Once you receive the link, complete the form. Depending on the work involved, you may be asked to provide:

GSRF awardee unique ID
Project details, including dates and location
Requester and supplier contact information
Upwork Statement of Work (SOW), including:
- Description of the work and deliverables
- Project timeline
- Total payment amount and payment structure
- Applicable Upwork processing fees
- Any other relevant project terms
Information about high-risk data, if applicable
Estimated contract amount: the amount you expect to pay to Upwork from your GSRF award
Faculty mentor approval
Estimate or quote from the service provider
Budget: Attach a completed budget for the contract expenses using the expenditures budget template.

Please note that Upwork charges a processing fee based on how the freelancer is identified. If you bring your own freelancer to Upwork, there is a 7.5% processing fee. If you hire an individual identified through the Upwork platform, the processing fee will be 30%. Be sure to account for the applicable processing fee when preparing your project budget.

4. The King Center sets up the Upwork purchase order (PO): The RPA will request approval of the Upwork SOW and, once it is approved by Upwork, will submit the purchase order (PO) request to Stanford Procurement.

5. Hiring: After the Upwork PO is approved, the RPA will start the process of hiring your freelancer through the Upwork platform. The freelancer is invited to the Upwork hiring platform, goes through the onboarding process with Upwork, and formally accepts the offer.

6. Payment: Your freelancer will submit their invoice(s) directly to Upwork. You will receive notification from Upwork that the invoice has been submitted. Please review carefully to confirm that deliverables have been completed. If the work is done, you will confirm with the RPA that the freelancer’s work is complete and they can be paid. Should you find that the freelancer has not completed work as expected or in full, then communicate with the RPA immediately.

Upwork will pay the individual directly and invoice Stanford at the end of each month. The King Center will process payment to Upwork using your GSRF award funding. You do not pay the freelancer directly.

Frequently Asked Questions

Payment Methods and Disbursement Policies

Graduate Student Research Funding provided by the King Center must follow all applicable Stanford policies. 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. And, as of January 1, 2025, they are required under California's Freelance Worker Protection Act.

Depending on the amount it can be done in different ways. For certain online platforms like Meta, disbursement via stipend is the only option. For questions, please contact the King Center Programs Team at kingcenter_programs@stanford.edu.

Yes, the Disbursement Form is required to officially request and track the funds in our system.

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

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.

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.

Stanford collects Certificates of Insurance (COI) to ensure that suppliers meet the minimum insurance coverage required of all suppliers doing business with Stanford. Exceptions might be available to this requirement. However, only the Risk Management Office can approve an exception to the insurance amount.

If the new work is part of, or a continuation of, the previous project, then the contract can be amended or renewed. If the new SOW is not part of the prior project or significantly differs from the original scope, a new contract should be requested.

Timing

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. Additionally, the supplier’s legal team may take significant time reviewing the contract or ask for changes that do not align with University policy and require significant negotiation. Additionally, the supplier’s legal team may take significant time reviewing the contract or ask for changes that do not align with university policy and require significant negotiation. The fiscal year end (August–September) generally sees a significant increase in the volume of contract requests and can also impact processing time.

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.

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

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.

The Statement of Work (SOW) form is often also referred to as the Scope of Work. It is intended to be a detailed 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.

If your project does not involve interviews or activities with human subjects, IRB approval may not be required. Please review Stanford’s IRB website for information on requirements and how to submit a Protocol Application.

A Data Risk Assessment (DRA) is a review process to determine whether transferring Moderate or High Risk data to a non-Stanford entity complies with Stanford’s Minimum Security Standards and Minimum Privacy Standards. Before you send or receive such data to or from an external partner, a DRA must be submitted to evaluate the potential risk to the University.

Stanford uses OneTrust to request, track, and manage DRAs. In short, if a supplier will have access to high-risk data (or connection to a system that contains high risk data), a DRA is required. For more information, please visit the Stanford DRA page.

A Data Use Agreement (DUA) outlines the terms for sharing non-public or restricted data between organizations, including how it can be used and protected. You may not need a DUA if Stanford is only receiving data, the data is de-identified, another agreement covers the transfer, or the data isn’t sensitive or confidential.

For more information, visit the Stanford DUA page.

Contract Modifications and Budgeting

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.

It is time-consuming to amend a contract to add additional funds, so it is better to prepare the contract for a higher estimate including any taxes, surcharges, or contingencies.

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 larger contract with a contingency amount.

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.

Outside Funding, Project Completion, Unused Funds

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) (a.k.a. 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).

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.

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

Upwork does not compensate contractors with cash payments. For more information, please contact the King Center Programs Team (kingcenter_programs@stanford.edu).

If you use Upwork to hire a contractor, Upwork will deduct any fees and handle the tax process directly with the contractor. 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

Please contact the King Center Programs Team at kingcenter_programs@stanford.edu with any questions.

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