Chapter 21-600: State Requirements

21-610 State Standard Contract and Interagency Agreements

State of California agencies usually provide an interagency agreement when funding a project with the University. The State General Terms and Conditions for Interagency Agreements, GIA, do not have and do not require insurance or indemnification clauses. However, when a State agency uses a Standard Contract Agreement Form (versus an interagency agreement) with the University, the agency may insist on attaching the General Terms and Conditions (GTC) with the following indemnification language pre-printed on it:

The Contractor agrees to indemnify, defend and save harmless the State, its officers, agents, and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Contractor in the performance of this Agreement.

As explained above in 21-430, without obtaining approval of The Regents, Standing Order 100.4 allows the University to assume liability only for its own "officers, agents, employees, students, invitees, and guests..." As every State General Terms and Conditions (GTC) Exhibit for contracts contains this clause requiring its contractors to assume liability for third parties, that is, those other than their own employees, officers, etc., each State Standard Agreement incorporating this Exhibit would require Regental approval under The Regents' Standing Orders. The Regents, therefore, authorized the President to execute all State Standard Agreements containing this indemnification clause at their February 14, 1975 meeting. The authority to accept these Agreements was been redelegated to Chancellors and the Laboratory Director in their Delegation of Authority for Contract and Grant Administration. (See Chapter 13-710 and 13-930.)

In addition, however, the University and the State Department of General Services agreed to the use of an indemnity/hold harmless clause which provides mutual indemnification between the two parties in lieu of the above cited clause. This clause may be used in State Standard Agreements in place of the above-cited GTC indemnification clause as well as in interagency agreements (GIAs) if the agency requires an indemnification clause (indemnification clauses are not required or necessary in a GIA), with the following exceptions determined by the State Department of General Services:

  • The clause should be used in agreements which are funded by pass-through or subvention funds; and
  • Agencies may refuse to use it when the University bids on a contract, competing with private, for-profit corporations.

21-620 Insurance

The State Department of General Services and the OP Office of Risk Services have historically agreed that contracts and agreements between The Regents and the State do not require evidence of insurance. However, this agreement is subject to the decisions of the current Director of the Department of General Services and can, therefore, change.