Contracts

Contracts are necessary when a department, lab, center, or institute (DLCI) needs to purchase goods or services from a supplier, such as software, a major equipment purchase, or professional consulting services.

Taking the time to have contracts properly reviewed ensures that:

• The contract you are making aligns with your scope of work and research/business needs and helps prevent later misunderstandings between you and the supplier
• Terms comply with MIT policies and procedures, such as insurance requirements
• Terms protect MIT from liability to the greatest extent possible, such as losses related to physical property or data

During the contracts review process, the Contracts team will:

• Review the supplier’s contract or draft an MIT contract to ensure alignment with Institute polices and reduce MIT’s liability risk
• Negotiate contract terms with supplier as necessary to protect MIT’s interests
• Collaborate with MIT’s Office of the General Counsel, Office of Insurance, and other MIT offices or units as needed
• Work with the DLCI to ensure business components of the contract meet their needs
• Coordinate signature of the contract on behalf of MIT

The VPF Contracts team becomes involved in the purchasing process when a supplier presents a contract with terms related to the goods or services that your DLCI is purchasing, or when a purchase requires contract terms due to the scope, complexity, and value of the purchase. 

When you receive a contract from a supplier, attach it to the requisition you create in Buy-to-Pay (B2P) to pay for the goods or service. If the supplier did not present you with a contract, attach quotes, order forms, or statements of work to the requisition, as applicable, so that the Contracts team can draft appropriate language. 

Have questions about a contract? Email vpf-contracts@mit.edu.

Contract review is a very individualized process and time to final approval depends on the complexity of the contract, how long it takes suppliers and/or other MIT offices to respond with questions or comments, the level of negotiation involved, and more.

• When a requisition with a contract reaches VPF Contracts in Buy-to-Pay (B2P) for review, DLCIs should allow up to 10 business days for contract review and approval. A contract advisor will inform the DLCI regarding timing throughout the review process based on complexity and volume of contracts under review 
• More complex cases may require additional time
• VPF sees a significant increase in volume of contract requests at the end of the calendar year and the end of MIT’s fiscal year, which can also impact processing time

You can help facilitate contract review and approval by having ready some essential information about your purchase, such as:

• What are you buying, and what is it for?
• How are you paying? Are you paying in increments? Are there milestone payments, or deposits?
• Is work being done on campus as part of the contract? If so, where and for how long?
• For services, is there a start and end date? Is there a payment schedule, or are you paying in full at the completion of the project? Are there any travel costs?   
• Does your project involve sharing confidential or sensitive information such as individual financial information, protected health information, or student educational records?
• Is this research related? Do intellectual property rights need to be negotiated?

Changes to an existing contract, including extending the term, scope, or budget, usually require an amendment, and if there is a financial impact, require a change order for your PO in Buy-to-Pay. If you need to make changes to your contract, contact the Contracts team as soon as possible so they can review and draft amendments to memorialize the new terms. 

Most MIT contracts are written with firm expiration dates. If you need to end a contract before its termination date, contact the Contracts team as soon as possible to allow for a review of termination rights under the contract.