Frequently Observed Contracting Errors
- Retroactive Contracting
- Contracting with Current and Former UHS Employees
- Unauthorized Contract Signatory
- Contract (Terms and Conditions) Not Approved by OGC
- Contracting with Vendors on Hold with the State of Texas
- Consequences of Policy Violation
Retroactive Contracting
You cannot contract on a retroactive basis. (That is, you cannot begin the scope of work on the contract or have a start date on the contract that precedes the date of the final signature that fully executes the contract.)
University of Houston System Administrative Memorandum
03.A.05 Contract Administration
2. POLICY
2.3. All contracts shall have all applicable administrative and legal reviews completed and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.
Contracting with Current and Former UHS Employees
You cannot contract with a UHS employee or someone who has been employed by UHS in the past 12 months.
University of Houston System Administrative Memorandum
02.A.24 Employees and Independent Contractors
3.2. Under provisions of State and federal law, an individual may not be hired as an independent contractor when currently on the payroll of any component university. Similarly, State law requires that an individual may not be hired as a consultant on an independent contractor basis if employed by any component of the System during the previous 12-month period.
Unauthorized Contract Signatory
You cannot sign a contract for UHD unless you have written authorization from the UHD President to do so.
University of Houston System Administrative Memorandum
03.A.05 Contract Administration
2. POLICY
2.1. No person has the authority to bind the System or any of its component universities contractually except in accordance with this document. The Board must approve certain contracts in accordance with Board Policy 55.01, Board Policy 53.04, and Board Bylaws. The Board delegates to the Chancellor the authority to negotiate, execute, and administer all other contracts or delegate said authority.
2.4 Contracts are legally binding on the System and/or its component universities only upon execution of the contract by the System and/or component university official with delegated contractual signatory authority.
University of Houston-Downtown Policy Statement
05.A.06 Contract Administration Policy
3. POLICY
3.1 Delegation of Contract Signature Authority - All delegations of contracting authority must be made in writing, approved by the President, and filed with the appropriate Office of Contract Administration. No employee, officer, or agent of the University shall have the authority to execute contracts unless expressly delegated such authority pursuant to this policy. Contracts are legally binding only upon execution of the contract by an employee, official, or agent of the University with delegated contractual signatory authority.
Contract (Terms and Conditions) Not Approved by OGC
All contracts have to be reviewed by the Office of General Counsel (OGC) and signed by all authorized individuals before work or service begins
University of Houston System Administrative Memorandum
03.A.05 Contract Administration
2. POLICY
2.3. All contracts shall have all applicable administrative and legal reviews completed and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.
Contracting with Vendors on Hold with the State of Texas
You cannot place an order with a vendor or pay the contracted amount for services to a vendor if the vendor is "On Hold" with the State of Texas (i.e., owes the State of Texas money)
Texas Government Code 403.0551
§ 403.0551. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR TAX DELINQUENCIES.
a) Except as provided by Subsections (b) and (d), the comptroller may deduct the amount of a person's indebtedness to the state or tax delinquency from any amount the state owes the person or the person's successor.
Consequences of Policy Violation
Predefined minimum consequences for violation of contracting policy are as follows:
Tier 1:
- Notification to the employee regarding corrective action provided throughout the contracting process
Tier 2:
- Accounts Payables "Violation of UHD Policy Statement" and/or
- Contract Administration "Interoffice Memo — Notice of Noncompliance"
- Serious Violation/Fraud: Disciplinary action up to and including termination