Consultant Agreement Procedure
When a consultant is needed to provide services under a grant or contract, the principal investigator must first determine if the individual should be hired as an OSU employee or as a consultant. A consultant relationship must be that of an independent contractor.
Consultant vs. Employee –Determination
The following are some criteria that can assist principal investigators with determining an independent contractor (consultant) versus employee relationship. The more criteria met, the more likely the person should be considered an OSU employee, even if temporary or part-time.
The principal investigator or The Ohio State University:
- provides instruction about when, where, and how to work
- provides the workstation, tools, materials, supplies
- is able to fire, assign, or discharge the individual
- pays the individual a salary vs. payment based on work completed
- is in a continuing relationship, however frequent or irregular
- has the legal right to control both method and results of work
- provides training to the individual
- hires other employees to assist the person the job
- integrates the person into the project staff
- sets the person's hours of work
- is able to terminate the contract without risk of lawsuit for breach
The individual:
- performs the work as part of the university's customary line of business
- assumes no financial risks
- has no other clients for the same services
- makes no attempt to get other clients
- makes no profits or losses
- has no investment in the business
These criteria are to be used for guidance. It is the sum of the circumstances rather than any one criterion that determines the proper relationship (employee or consultant). For further assistance, contact OSU Human Resources.
Human Subjects
If the consultant will be engaged in non-exempt research involving human subjects, approval from the appropriate OSU IRB is required before entering into a consultant agreement. It is the responsibility of the principal investigator to obtain the individual authorization from the IRB. After approval is obtained, an Individual Investigator Agreement will be generated. The agreement will become part of the consultant agreement package (CAP). For assistance or questions concerning humans subjects contact the Office of Responsible Research Practices at 614-688-8457.
Consultant Agreement Package
After the decision to hire a consultant has been made, the principal investigator prepares the consultant agreement package (CAP) which consists of the following items:
- Consultant Agreement form (PR-070)
- Scope of Work
- IRS Form W-9
- Individual Investigator Authorization Agreement (for use when consultant is engaged in non-exempt research involving human subjects)
Processing the Consultant Agreement Package (CAP)
The principal investigator forwards the CAP to the consultant, who reviews it, completes the attached W-9 form, and addresses any conflict of interest certification on the agreement. By signing the agreement, the consultant accepts the agreement in its entirety, including the scope of work, terms and conditions, and conflict of interest certification. The consultant then returns the CAP to the principal investigator.
The principal investigator will sign the agreement and then forward the CAP to his/her sponsored program officer in the RF Office of Grants and Contracts (OGC). The sponsored program officer reviews the CAP and once approved transmits it to RF Procurement.
If the consultant is a Non-Resident Alien (see below for Non-Resident Alien procedures), the sponsored program officer will email RF Accounts Payable a copy of the CAP. Accounts Payable will do final review of the non-resident documentation prior to OGC approval and submission to Procurement.
Procurement issues a Purchase Order, which commits project funds for the consultant fee only. The following items are sent to the consultant and copied to the principal investigator:
- Purchase order and cover letter
- Consultant agreement fully signed
- Blank Consultant Invoice forms (AC-230)
- Blank Payment Request for a Non-Employee form (AC-NT1). The consultant uses these forms to obtain reimbursement for authorized non-fee expenses (e.g., travel).
Non Resident Aliens
If the consultant is a Non-Resident Alien, the principal investigator must contact the Research Foundation (RF) Accounts Payable Office (Kathie Cooper 292-0143) prior to executing the agreement, to insure that documentation for the consultant is in order.
Minimally, the consultant must provide copies of the following documents:
- Picture page of Passport
- Current Visa
- Current I-94
- Social Security Number (Thirty percent taxes are withheld on each payment for individuals who do not have a social security number. Those individuals with a social security number will be required to enroll in the Glacier system. An email address is required for the Glacier system enrollment. Contact RF Account Payable Office for assistance).
- OSU Compliance Form for Payment to B-1 or WB Visa Holder (if applicable)
Consultant Invoicing Procedures
The consultant completes and signs the Consultant Invoice form to request payment of the billable fee. The consultant sends the original signed form to the principal investigator who signifies approval for payment by signing the form and forwarding it to RF Accounts Payable.
Consultants may obtain reimbursement for travel and other miscellaneous expenses if these are (a) stated in the consultant agreement's scope of work and (b) authorized by the purchase order. To be reimbursed, a consultant completes and signs the Payment Request for a Non-Employee form and forwards the form, with original receipts, to the principal investigator. The principal investigator signifies approval for reimbursement by signing the form and forwarding it to RF Accounts Payable.
Amending the Consultant Agreement
A principal investigator may request an amendment to a consultant agreement by preparing a Consultant Agreement Amendment form (PR-070-A). The amendment may result in a new Purchase Order (P.O.) if the previous P.O. has been closed. The principal investigator chooses the necessary actions by checking the appropriate boxes under Amendment Action.
The principal investigator sends the form to the consultant, who signs and returns the original. The principal investigator signs the amendment and forwards it with any necessary attachments to the sponsored program officer. The sponsored program officer reviews the amendment and once approved forwards it to RF Procurement, which will issue a Change Order to the P.O.
Other Important Considerations
All consultant forms submitted to the Research Foundation must have original signatures.
Funds for travel and other miscellaneous reimbursable expenses are not committed to the project. These expenses are charged to the project when reimbursement requests are processed. Because non-fee reimbursable consultant expenses are not committed to projects, principal investigators are advised to monitor their project budgets for these expenses. Travel reimbursements are charged to the travel line in project budgets, while other consultant reimbursements are charged to appropriate budget categories.
All consultant invoices and reimbursement requests must be received within 30 days after the consultant agreement's end date. It is the principal investigator's responsibility to monitor the work of the consultant and approve all consultant invoices and reimbursement requests in a timely fashion.
The competitive bidding process applies if the aggregate total of the consultant agreement is $25,000 or more. Amendments may increase an agreement, triggering the competitive bidding process. For further information and assistance, contact RF Procurement (292-6871).
Contact Information
For assistance in preparation of the Consultant Agreement Package and for other project questions contact your OGC sponsored program officer which is on the PI Portal.
Contact RF Procurement (292-6871) for questions pertaining to purchase orders for consultant agreements.
Contact RF Accounts Payable (292-8187) for invoice and reimbursement questions.
For all other consultant procurement questions, contact Roger Bigelow (292-1244), Director, RF Procurement.
