Two-Party Agreements

Definition

Formal contract to establish a contractual agreement for consultant or other services not processed through the Payroll Office.

When to use Two-Party Agreements

• Use for one-time or short duration services, such as a guest speaker, entertainers, consultants, etc.
• These agreements are not to be used for part-time staff. They are processed through Payroll.
• The agreement form provided by Purchasing must be used. It contains certification clauses required by State law.

How to use Two-Party Agreements

• Agreements for $2500 or less per fiscal year must be signed by the fiscal agent and the service provider prior to the beginning of service in order to be binding.
• Agreements over $2500 must be attached to a requisition and mailed to 1220 Purchasing. A purchase order will be issued. An agreement is not required with a requisition, but may be desirable in order to clearly define specific terms of the contract and obtain the concurrence and signature of the vendor. Agreements over $2500 are not binding until they have an authorized signature from Purchasing.
• Professional and Artistic contracts $20,000 and over must be advertised for 14 full calendar days in the Illinois Public Higher Education Procurement Bulletin on the Internet. They may also need to be sealed bid. Contact Purchasing (8-7611) for further information.
• Agreements $25,000 and over for other than Professional and Artistic services need to be sealed bid and advertised for 14 full calendar days.
• Agreements over $25,000 must be approved by the President’s Office to be binding.

Required Information

• All agreements should include a precise statement of what service the provider is to render.
• The service provider’s social security number must be supplied.

Payment for Two-Party Agreements

• For agreements $2500 or less, the department must submit an invoice-voucher, or an electronic voucher. For hard copy invoice-vouchers, the signed Agreement must be stapled to the back. For electronic vouchers, the voucher number should be clearly identified on the original agreement. Invoice-vouchers and agreements should be mailed to 1200 Comptroller's Office. Reimbursable expenses must be verified by receipt.
• For agreements over $2500, Purchasing will initiate payment. Vendor's invoices should be sent to 1220 Purchasing with an "ok to pay" written on them.