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Sponsored Projects

Budget for Independent Contractors/Consultants


Comply with federal and University limitations when budgeting professional services.


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.


  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.

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Last Updated: 12/1/22