Contract Review Policy

Policy Type: 

I. Policy Title: Contract Review Policy

II. Who Does This Policy Affect

All Board of Trustees, HFC faculty, staff, employees, students, and vendors/contractors

III. Purpose

To establish a streamlined process for contract review and conformance.

IV. Policy Statement

The Board authorizes the College President, Vice Presidents or their designee to enter into contractual obligations that bind the College. MCL 389.101 et seq. All delegations of authority from the President or Vice Presidents as noted within the individual’s job description or personnel file must be in writing. Before taking any action on behalf of HFC or signing any contract or other document that would bind the College, employees must verify that they have received written delegation of authority to do so. The only other individual allowed to sign a contract on behalf of the College is the College’s Purchasing Director, if the President, or Vice President of Financial Services so authorizes.

All contracts to which HFC is a party, are subject to the Board's policies and procedures and the process specified in this document. The Board of Trustees directs the President and/or Designee to develop procedures to implement this policy.

HFC representatives who enter into obligations on behalf of the College, without the actual authority to do so, risk creating a situation that may embarrass the College, damage its business reputation, and have legal consequences. Unauthorized individuals who enter into past and prospective contracts may be held personally responsible for those obligations. This policy replaces prior practices and will be strictly enforced.

Early in the contract development process, the authorized individual requesting the contract should coordinate with and seek input from all relevant departments at HFC to minimize risk and maximize compliance, such as, but not limited to, Facility Services, Financial Services, IT Services, Legal and Purchasing. Any party who enters into a contract on behalf of HFC must know, understand, and conform to all aspects and duties of the contract. These aspects include, but are not limited to, knowing the contract’s beginning and endings dates; the costs, invoice terms and payment schedule for all goods and services to be provided; the deliverables required or expected from the provider to HFC; the methods by which the contract may be amended, renewed, closed, or terminated for cause, and all elements of the contract that the authorized signer must monitor.

Signing a contract on behalf of HFC without obtaining appropriate administrative approval and legal review may, if the College chooses not to honor the contract, result in personal liability for the unauthorized person signing the contract. HFC employees in violation of this policy are subject to a range of discipline, including but not limited to, disciplinary action, dismissal from the College, and/or legal action.

V. Definitions

Below are examples/definitions of contracts in which the College enters into. This list is not inclusive of all contracts.
1. Contract: Any written or verbal agreement, contract, letter of intent, memorandum of understanding or other agreement that the provisions of which are binding on the College.
2. Articulation Agreement: An agreement between postsecondary institutions that compares the content of courses that are transferred between two institutions.
3. Memorandum of Understanding: An agreement that is written to clarify the roles and responsibilities of the parties.
4. Lease Agreement: Any contract, including, but not limited to, premises rental contracts, by which a party acquires space on the College campus for a specific period of time.
5. Settlement Agreement: Any document that settles a legal claim against the College. A legal claim may be a civil action, a grievance pursuant to a Collective Bargaining Agreement, a complaint to the EEOC or OCR or other action that potentially engages the liability of the College. No Settlement Agreement may be entered into and signed in the name of the College until it has been approved by the Office of Legal Services. Only the President/Designee may sign a Settlement Agreement.
6. Deliverables: A negotiated set of conditions in a contract such as the goods, services, tasks, and work products that each party needs to provide during the course of the project.

VI. Responsible Party for Policy Interpretation/Review

Vice President of Financial Services
Office of Legal Services
Purchasing Director

VII. Related Documents

Procedure for Contract Review and Approval

Purchasing Bidding Limits - see attached

Contract Review Form - see attached

VIII. Policy History:

a. Adopted by Board: August 13, 2018

March 22, 2022 – Reviewed with no changes.

This policy supersedes and replaces any and all policies related to this subject

Board Approved