Contracts through SORC Finance are legally binding agreements between the individual/vendor that your organization is paying and the university on behalf of your organization because university funds are being used to pay for the service. They are used to pay for services or goods/supplies that your organization is renting.
Contract requests can be accessed by presidents and treasurers of organizations who have completed the SPEND Training via the SORC Finance Spending Request Form. These requests must be submitted at least 15 business days prior to the first date of contracted services. Additionally, all vendors being paid by contract must register as suppliers with the University in Workday.
While students are able to sign contracts as individuals and on behalf of their organization, only employees with designated signatory authority are able to sign a contract on behalf of the University. Hence, students should never sign a contract to commit University funds or resources. If signing a contract on behalf of your organization, it is recommended you make an appointment with the Student Legal Aid Office to review the contract prior to signing.
Dos and Don'ts
- The contract holds the individual/vendor legally responsible to the conditions of the contract.
- If your organization believes that the individual/vendor did not fulfill any or all of the conditions of the contract, you should notify SORC in writing immediately. The university will then work with the individual/vendor to determine whether they should receive payment.
- Never sign a contract to commit University funds. Contracts utilizing University funds must be signed by an individual with designated signing authority, and student orgs access this signature through SORC Finance's contract process. Signing a contract may make you personally liable for payment.
Common Issues with Contracts
- The state of Maryland will not issue payment for a contract that has been signed after the date of services. All contracts must be signed by vendors at least two business days prior to the first date of service indicated in the contract.
- The information included on a contract must match the supplier's registration in Workday exactly. Student groups should advise their vendor to ensure their business name and address match the information on their supplier registration and W-9 exactly when they review the contract.
- Payment can only be initiated once the contracted services are complete. Therefore payment should be received within 30 business days of the date the contract was executed or the final date of service indicated on the contract, whichever is later.
- SORC Finance is unable to pay undergraduate students, graduate students, or professional staff in the University System of Maryland (USM) or employed by the State of Maryland as contracted vendors due to employment and tax implications. If an individual was enrolled as a student or employed by UMD or the State of Maryland at any time during the current tax year (January–December), they are not eligible to be contracted until the start of the following calendar year.
Frequently Asked Questions
When do I need a Contract Request?
Examples of when you should submit a contract request are:
- Paying a speaker or performer(s) for an event
- Renting audio or video equipment for an event
- Paying an individual or company to provide DJ, audio, video or other services for an event
What are the contract guidelines?
Contract guidelines:
- Please submit the request at least 15 business days in advance or else our office will not be able to process it in time
- Need to have event approval
- Required items/ information:
- Student group Contact information
- Vendor Contact information
- An updated W-9 from the Vendor signed within the last 6 months
- A detailed description of what service the vendor/ performer will provide
- Event Details (Time frame, if any intermissions, In-person/ hybrid platform)
- Program Type *can be found directly from your group's ledger
- Subcode *can be found directly from your group's ledger
How do I fill out a Contract Request form? Where can I find it?
If you have all the required information for a Contract, presidents and treasurers of student organizations who have completed the SPEND Training can access the SORC Finance Spending Request form via the Documents section of the SORC Finance TerpLink.
My Contract Request has been accepted! What are the next steps?
- SORC Finance has transitioned to Adobe Sign. You should receive an email from Adobe Sign with instructions on reviewing and acknowledging the contract.
- Upon your acknowledgment in Adobe Sign, the contract will automatically be forwarded to the vendor and they will be prompted to read and sign it. Please make sure your group and vendor acknowledge and sign the contract at least five (5) days prior to the date of service.
- Failure to acknowledge and sign the contract in Adobe sign before the service/ event occurs will result in your contract being rejected by the State of Maryland’s Accounts office which will leave your group liable for all costs
- The contract payment process ends the day of your event listed on the contract. After this date, the service is considered rendered, and a check will be mailed to the vendor within 42 days.