Procedures Manual - Contracts
Professional Service Agreements (PSAs)
PSAs are used when TRU agrees to pay an individual or an organization to deliver instruction or services that aren't covered under a PTIC or honoraria, and they should only be used after determination that the individual or organization is an "independent contractor." Please read the following section to determine whether the individual providing services for you is an employee or independent contractor. Please note that failure to pay or withhold taxes could result in back taxes, fines, and possible criminal prosecution.
Please note that hours worked are irrelevant; payment is made on either a daily or lump sum basis. Expenses, such as travel, can be included in this amount. Inclusion of hours worked alludes to the existence of an employer-employee relationship, in which case another form of payment must be used.
A "Goods and Services Tax Information" sheet should be completed by the contractor and attached to the PSA before it is sent to Purchasing.
Contract Review:
There has been much confusion recently on the signing of contracts and when a legal review is required of contracts including our standard form contracts (PSA and ESA in particular).
Board policy BRD 02-1 (http://www.tru.ca/__shared/assets/Signing_Authority5636.pdf) provides for positions that are authorized to sign all contracts and at what value. Different types of contracts are authorized to different positions; please refer to each authorization for the authorized signatories for each type of contract.
The policy states that the person signing the contract must review the contract and takes responsibility for making sure that a legal review has been completed. The policy further states that all contracts over $5,000 must receive a legal review.
For clarity:
- all ESA and PSA over $5,000 must receive a legal review.
- all non standard contracts should receive legal review, however, all over $5,000 must receive a legal review - a Contract Review Request Form must be filled out and sent to legal@tru.ca
Further information is available on the following subjects: