Contractors

Documentation Required to Engage an Independent Contractor/Consultant

Universal Form
Independent Contractor Pre-Hire Worksheet
Independent Contractor/Consultants Form
Proof of Business Liability Insurance (or Insurance Waiver)
Scope of Work

A proposal from the independent contractor/consultant that shall be in writing and shall include, but not necessarily be limited to, the following:

A description of the contractor/consultant's qualifications, with a brief list of similar types of consulting contracts successfully concluded (a sample of such work when appropriate).

An overall description of the techniques by which the contractor/consultant intends to approach the problem, contractor/consultant resources to be expended, the anticipated beginning and ending dates for the services, equipment and facilities to be utilized.

Independent Consultant
An independent consultant is an individual not employed by the University of proven professional or technical competence who provides primarily professional or technical advice to the University and the University does not control either the manner of performance or the result of the service.

For complete guidelines see Business and Finance Bulletin BUS-34: Securing the Services of Independent Consultants

Independent Contractor
An independent contractor relationship exists when the University has the right to control only the result of the service, not the manner of performance. Independent consultants are a special type of independent contractor and for University purposes are treated somewhat differently than non-consultant independent contractors.

As related to independent contractors, service is useful labor performed for another that may or may not produce a tangible commodity. Service may be personal or professional, including but not limited to: speakers, lecturers, instructors.

In general, such service is covered by the University's standard purchase order form and terms and conditions of purchase in accordance with the procedures described in Business and Finance Bulletin BUS-43, Materiel Management.

For complete guidelines see Business and Finance Bulletin BUS-77: Independent Contractor Guidelines

Insurance Requirements

Certificates of Insurance Issued to the University of California
Independent contractors, consultants, vendors and/or other service providers performing work/services must include as part of their contractual obligation a provision to defend and hold the University harmless from any loss, injury, or damage occurring during the performance of their work, and must indemnify The Regents for any loss suffered as a result of negligence on the part of the contractors, consultants, affiliates, or service providers, including their employees, agents, and sub-contractors.

Under the terms and conditions of any contract, purchase order, or other agreement, the service provider is required to show evidence of adequate insurance coverage by furnishing Certificate(s) of Insurance indicating compliance with all requirements

Comprehensive or Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

Each Occurrence - $1,000,000
Products/Completed Operations Aggregate - $2,000,000
Personal and Advertising Injury - $1,000,000
Fire Damage (any one fire) - $100,000
Medical Expenses (any one person) - $5,000
General Aggregate (not applicable to comprehensive form) - $2,000,000

If the above insurance is written on a claims-made form, it shall continue for three years following termination of the agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the effective date of the agreement.

Business Automobile Liability Insurance for owned, scheduled, non-owned, or hired automobiles with a combined single limit of not less than $1,000,000 per occurrence. (This is required only if the contractor drives in the course of performing work for university.)

Professional Liability Insurance with a limit of $2,000,000 per occurrence with an aggregate of not less than $2,000,000. If this insurance is written on a claims-made form, it shall continue for three years following termination of the agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the effective date of the agreement. (This requirement is for Independent Consultants.)

Workers' Compensation: to meet the applicable statutory requirements.

Such other insurance in such amounts which from time to time may reasonably be required by the mutual consent of the University and Independent Consultant against other insurable hazards relating to performance.

Purchasing Insurance
If the individual you intend to engage does not carry the required insurance, you should suggest that they purchase a policy. For assistance in this area, please contact Andrea Rader, x62224.

Waiver of Insurance
In rare cases proof of insurance from the Independent Contractor/Consultant may be waived provided both the Office of Insurance and Risk Management and the school approve the waiver. Since this requires that the school accept financial responsibility on behalf of the Contractor/Consultant, only the Dean and the Assoc Dean, Finance and Operations are authorized to approve on the school's behalf. The school will not agree to waive automobile insurance requirements if the contractor/consultant drives in the performance of the contract.

A Waiver of Insurance Request must be completed.

For complete guidelines see Business and Finance Bulletin BUS-63: Insurance Requirements/Certificates of Insurance

Conflict of Interest - Independent Consultant/Contractor
Conflict of Interest - The State of California Political Reform Act prohibits an employee from making or participating in the making of a decision if there exists a financial conflict of interest. Requirements governing such decision making are set forth in the University's Conflict of Interest Code and shall be observed by the University in contracting for consulting services (see Conflict of Interest).