Contract Advisory
THIS FORM IS FOR INFORMATION PURPOSES ONLY. CONTRACT MANAGEMENT WILL FILL OUT THE FORM AND SEND IT TO THE END USER FOR SIGNATURE PRIOR TO THE CONTRACT BEING SIGNED BY THE APPROPRIATE UNIVERSITY OFFICIAL
Vendor’s Name:
Name of Product/Service being acquired:
I have read the Contract Review Checklist located on the Office of Legal Affairs’ website. The contract described above, which has been submitted for approval and signature, contains one or more provisions that are normally unacceptable to the University. These provisions are normally unacceptable because they (a) potentially impose liability on the University beyond that which is deemed to be appropriate for a state agency, or (b) limit the vendor’s normal liability for its own breach or other wrongdoing, or (c) violate a provision of State law or university policy, or (d) do all of the above. Negotiations with the Vendor to remove the provisions listed below have been unsuccessful.
It is the department’s responsibility to review and evaluate all risks associated with the assumption of the following items. The specific paragraphs of the contract for which this advisory are issued and the reason the paragraph is not normally acceptable, based on the Contract Review Checklist, are as follows:
The Attorney General of North Carolina has provided written advice recommending that such terms be deleted and the NC State Office of Legal Affairs concurs in this advice. However, the decision of whether to assume risks of contractor non-performance, default, defect, and other liabilities is left to the NC State University supervisor (department head or higher) of the unit that wants the product or service being provided under the contract.
By signing below, the affected unit indicates its desire to enter the contract without deleting the provisions that have been identified as normally unacceptable. Any damages or costs that result from the presence of these clauses in the contract are to be paid from the affected unit’s budget. The unit acknowledges it has done a business risk analysis on the unit’s monetary exposure under the above identified contract terms and the unit accepts the potential for the maximum monetary liability.
This Contract Advisory is an internal University document intended to make the affected unit aware of the risks of agreeing to the identified clause(s) and to alert the unit to the potential impact on its budget under certain circumstances. In no way is it intended to make any individual personally liable under this contract. This Contract Advisory may be used to address any of the normally unacceptable clauses listed on the “Contract Review Checklist” (http://www.ncsu.edu/legal/legal_topics/contracts_purch/checklist.php) that are identified on the Checklist as being among those clauses that may be accepted by the University upon execution of a Contract Advisory.
If there are any questions about use of this Contract Advisory or the attached contract, please contact Contract Management Administration at 515-6134 or by email at jrgarris@gw.fis.ncsu.edu
After reviewing the preceding advice, the affected unit requests that Purchasing proceed with the contract as attached even though this may expose the unit to possible losses or damages as described above.
Name of Unit seeking the Product or Service:___________________________________________
Contact Person in Unit:____________________________________________ Phone:____________
Department’s Financial Officer’s Signature: ___________________________ Date: ____________
Financial Officer’s printed name: ____________________________________________________
Department Head’s signature:_______________________________________ Date:_____________
Department Head’s printed name:_____________________________________________________