Contract Management Policy

PURPOSE 

The purpose of this policy is to ensure that the University effectively manages the risks associated with its legal agreements by providing clear guidelines for oversight, execution, and compliance with contracts related to purchases with NNU.

SCOPE

This Policy applied to all contracts creating by An-Najah National University as part of its purchasing processes and applies to all employees, contractors, agents, and volunteers associated with An-Najah National University.

INDEX

1. Definitions
2. Overview
3. Contracts
4. Legal Review
5. Signature Authority
6. Compliance and Monitoring
7. Roles and Responsibilities

POLICY STATEMENT

This policy must be followed when creating, approving, signing, and managing contracts related to purchasing processes.

1.Definitions

Contract

A contract represents an oral or written binding commitment made by or on behalf of the University.

Contract Management 

Contract Management is the process of creating, negotiating, signing, executing, and implementing a contract, this includes ensuring that Scope, scheduling and contract condition are met, addressing related problems; incorporating changes or modifications to the contract; and ensuring both parties meet their obligations under the terms of the agreement.

Contract Manager

The University employee responsible for managing the ongoing relationship with the vendor including implementation, renewal, and support. This person is responsible for ensuring that the University’s rights and obligations under the contract are met. Contract Managers can view, create and submit contracts for approval.

Contract Signer

The University employee responsible for approving and signing contracts on behalf of the University.

Vendor 

A vendor is the party with whom the University contracts to provide the goods and/or services identified in a contract.

2. Overview 

The policy provides guidance on managing contractual commitments of the University, which authorized at the appropriate level within the University.

This policy must be read in conjunction with the University’s Procurement Policy and must be adhered to at all times.

3. Contract

Not all University purchases require a written contract. However, when a written contract is required by either party, the contract must be reviewed and approved in compliance with this policy. An exchange of correspondence, including emails, can also create a binding contract.

• All contracts must be in writing and signed by both the Contract Signer and the vendor in order to be fully commitment.

• The contract must list the legal name and address of the vendor and the terms must be clearly specified, e.g., Time, cost and Scope.

• Contract Templates, forms, terms, conditions are regularly reviewed and approved by the University Legal division.

4. Legal Review 

All University Contracts review by University Legal Division or outside legal consultant, except of those contracts that renew periodically with same terms and conditions.

5.Signature Authority

Only individuals identified in the Contract Signer have the authority to approve and sign contracts on behalf of the University accordance of Purchase and Contract Authority Matrix.

6. Compliance and Monitoring

The Contract Manager, or employee whom work with a vendor with whom the University has a contract, is responsible for administering the contract for the purposes of compliance with the terms, notification of actions, and for making business decisions based on the performance of the contract.  

 Contract managers shall record changes, renewals, additions and amendments to contracts in appropriate way.

7.Roles and Responsibilities

All employees responsible for the purchase of goods and services on the University’s behalf must be on knowledgeable of contracting requirements and this Policy.

• Responsibility of the Contract Manager 

The Contract Manager is responsible for:

1. Administering and Negotiation contracts, include understanding terms, scope of work or service , time ,business terms ,financial effect and termination conditions and procedures.
2. Arranging with related parties for monitoring and controlling the contract implementation.
3. Coordinate relationship between Vendor and University, which include payment progress according signed contract.
4. Provide timely and adequate reports for University administration about contract progress, infractions and termination.
5. Save and Archive copy of contract.

• Responsibility of Contract Signer

The Contract Signer is responsible for:

1. Fully understanding the contract’s terms and conditions.
2. Ensuring the vendor has signed the contract.
3. Approve and Sign Contract.
4. Save and Archive one of two copies of original contract.

• Responsibility of Financial Division

   The Financial Division is responsible for reviewing payment requests prior to Processing to ensure that all signature is on the request and payment is reviewed and processed within the payment terms.

• Responsibility of Internal Audit 

Internal Audit is responsible for providing periodic review for compliance with this policy.

RELATED POLICIES AND PROCEDURES

• Purchasing Policy

• Anti-Corruption Policy

CONTACTS

Procurement Division.