Contracts and Grants
Grants and Contracts
The determination of whether a funding agreement is a "grant" or a "contract" relates to the nature of the work to be performed and the terms and conditions under which that work is performed (as opposed to the title of the agreement). No one factor determines a contract from a grant; rather, a number of characteristics are looked at to make the determination of whether the University considers the agreement to be a research grant or a research contract.
Characteristics of Grants – 25% indirect cost rate
Characteristics of Contracts – 40% indirect cost
Provide financial support for research in a particular subject area or field, without any formal detailed stipulations as to the direction of such research.
Generally there are no reporting deadlines, though a final report may be required.
Project/budget can be changed by the principal researcher without notice.
Funds paid in advance to the University, or with minimal requirements for financial reporting and/or invoicing.
Open budgets with few line items or restrictions on project spending.
Funds are not attached to a specific performance outcome and cannot be retracted as a function of performance.
No financial reporting or third party auditing of funds.
No terms involving intellectual property.
Project is open with no proprietary/confidential data involving the sponsor.
Results may be published without pre-review or time delay involving the sponsor.
Ownership of equipment purchased for project vests with University.
Specifically outline the scope, nature and expected outcome(s) of the research.
Define deliverables and when its components are to be completed.
Require ongoing formal reporting through progress reports/final report.
Budgets are firm and detailed, possibly linked to milestones/deliverables.
Changes to scope of work; budget; or principal investigator, usually require consent of sponsor through amendment to contract.
Payments may be based on actual expenditures, some portion of the payment may be withheld (holdbacks) until the final report submitted and accepted.
Require invoicing and/or detailed financial reports; records must be maintained and may be submitted to sponsor; and expenditures audited/auditable.
Include provisions for intellectual property, such as ownership, options to negotiate license agreements.
May include requirements around publication and confidentiality.
May includes provisions for insurance, indemnity, warranty.
Establish considerations for acceptance and/or termination of the work.
Only the University has the authority to enter into research agreements that bind the University (legally). This includes grant agreements, research contracts, service contracts, funding agreements, material transfer agreements, confidentiality agreements and the like. Thus, agreements concerning research undertaken at the University must be between the University of Guelph and the sponsoring agency, and cannot be written in the name of an individual, Department, Institute, Centre, School or Faculty. All agreements and proposals concerning research must first be reviewed by the Office of Research and are signed by the Vice President, Research or designate (e.g. Associate Vice-President Research).Source: Adapted from University of Toronto Innovations & Partnerships Office.
For additional information please contact Laura Beaupre, Director, Research Support Services at 519-824-4210 ext. 56616 or firstname.lastname@example.org.