Professional Services Agreement Process


 This process is used for proposed contracts with business entities (e.g., sole proprietorships, partnerships, corporations, non-profit organizations) for professional services where payments will be associated with an employer identification number (EIN) rather than an individual’s social security number.  For services related to payments to an individual, (see Process for Independent Contractor/ Consultant ). Not all services are considered professional services.  Contact Business Services at 4122 with questions on what services qualify.

 For the services of entertainers, performing groups and associated agencies, (see Process for Performance Agreement).

For the services of speakers and speaker agencies, (see Process for Speakers Agreement.)

Note:  A fully executed contract must be in place before the work begins. 

 Description (For graphic, see Process Flowchart )

Step 1 – Originating department furnishes information regarding the proposed services online at and electronically transmits same to Business Services. 

 Step 2 – If grant or contract funds are to be used, Business Services electronically sends information to Sponsored Programs for review by Vice Provost for Research and determination as to appropriateness of a subcontract in lieu of professional services agreement.  If not approved by Vice Provost for Research, notification via Business Services is made to originating department.  Sponsored Programs will notify originating department and Business Services if it will be preparing a subcontract. If other funds are being used or Vice Provost for Research approves proposed grant/contract paid services as a professional services agreement, Business Services prepares a professional services contract and submits it, as required, to UM General Counsel’s Office for review.

 Step 3 – Following approval by General Counsel’s Office, the final version of the contract is signed by the Assistant Vice Chancellor, Business Services or alternate authorized individual and is sent to originating department.

 Step 4– Originating department sends/gives  the contact to the business entity for its review and authorized signature.

 Step 5 – Business entity returns fully executed contract to originating department which retains it according to the University’s record retention policies as the University’s official copy.  If grant or contract funds are used for payment for the services, the originating department sends one photocopy of the fully executed contract to the campus Sponsored Programs Office.  Originating department supplies a photocopy with voucher for payment.


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