Procedure Library

Budget for Independent Contractors/Consultants

Purpose

Comply with federal and University limitations when budgeting professional services.

Applicability

Principal Investigators (PIs) and administrators developing a sponsored project budget or managing award funds. Use of contractors/consultants is governed by sponsor regulations and policies and by University policies.

Instructions

1. Determine whether the professional services should be budgeted as a consultant or as a subaward. Follow the guidance in the Grant Life Cycle on determining if you will have a subrecipient, contractor or consultant.
2. Budget and proposal:
   1. Review sponsor instructions for restrictions or limitations on contractor or consultant costs.
   2. Contractor/consulting fees and reimbursement for travel and other contracted costs are budgeted as "Other Direct: Consultants".
   3. Obtain a letter of commitment from the contractor/consultant. The letter should include a statement of the consultant's willingness to participate in the project if funded, a description of the activities or services to be provided, and the rate.
3. Independent Contractor agreements are issued by Purchasing and are co-signed by OSP when the funding is on a sponsored project. The Independent Contractor Services Agreement template can be found in Other University Standard Form Contracts.

Related Policies and Procedures

• Research Handbook > Budget Development > Consultants