Administrative and Financial Services: Policies


This information is provided as a guide for determining appropriate employer relationships when securing services for University Affairs. Please consult with Debbie Carlson if you plan to enter into any of these arrangements.

Employer-employee relationship

This type of relationship typically exists when: the University has the right to give the worker instructions about when, where, and how he or she is to do the job. In this respect, even if the employer does not exercise the right to direct or control the manner in which the worker performs the services, the fact that the employer retains the right to do so is sufficient; the worker receives training from the University; the worker does not invest in their own facilities to perform the services; the University pays the worker's business expenses; the worker does not generally provide similar services to other employers; the University pays the worker by hour, week or month rather than by commission or job.

Employer-vendor relationship ("CONTRACTOR")

This type of relationship typically exists when the University has the right to control only the result of the service, not the manner of performance. Service is useful labor performed for another that may or may not produce a tangible commodity (i.e. transportation, computer programming, editing, typing, etc.). In general, arrangements to secure the services of an independent contractor may be entered into only when a determination has been made that the services are so urgent, special, temporary, or highly technical that they cannot be performed economically or satisfactorily by existing University staff during the course of their normal University responsibilities or duties. A proposed contract exceeding the $2,500 low value purchasing limit must be handled through UCLA Purchasing

Employer-consultant relationship (independent "CONSULTANT")

This type of relationship exists when the individual has proven professional or technical competence and provides primarily professional or technical advice to the University and the University does not control either the manner of performance or the result of the service. The services are of an advisory nature, providing a recommended course of action or personal expertise, having an end product which is basically a transmittal of information either written or verbal, and which is related to University administration and management.

The Office of Risk Management will no longer automatically waive general and professional liability insurance requirements when a consultant is unable to provide proof of insurance. A determination on whether the requirement can be waived is based upon evaluation of the consultant's proposal and the potential risk to the University. While it may be your opinion that the work poses little risk to the University, UCOP's Office of Risk Management is the entity best qualified to make that determination.

When preparing to initiate an agreement for consulting services, please first secure a comprehensive consultant's proposal (scope of service) detailing the work to be performed. Determine whether or not the consultant has the required insurance. If you foresee a problem with the consultant meeting the insurance requirements, consult with Debbie Carlson immediately so that she can coordinate review of the proposal with Risk Management.

If it is determined that a consultant cannot provide proof of insurance and Risk Management determines that the requirement cannot be waived, there is an option of having the consultant purchase the insurance coverage from a program available through UCOP's Office of Risk Management. While the University cannot purchase insurance for a consultant, your department can make a business decision to increase the amount of the consultant agreement to cover the projected cost of securing the required coverage. You may also ask the consultant to pursue other avenues of obtaining the insurance such as adding through their homeowner's coverage or through a professional organization that they may be a member of.

Consulting Agreement

Amendment