A contract is a written agreement between your club and a vendor or service provider that outlines the expectations, responsibilities, and terms of your working relationship. Clear documentation protects your club and helps prevent misunderstandings.
Recognized Student Organizations are responsible for signing their own contracts and service agreements. The University does not sign contracts for clubs and organizations, and University advisors do not sign on behalf of clubs.
Why Do We Need a Contract?
Contracts help your club:
- Clearly understand what a vendor or service provider will do.
- Protect your club from unnecessary risk.
- Avoid misunderstandings about services, payments, schedules, and responsibilities.
- Make sure the service provider accepts responsibility for their own actions through proper insurance and risk transfer.
When your club enters into an agreement with a vendor, it is important that the contract includes language that assigns risk to the party providing the service. This protects your club from financial loss and ensures that insurance coverage applies correctly. Key sections to look for include:
Indemnification
This section is the service provider’s written promise to take responsibility if something they do causes harm or leads to a claim. It shifts appropriate liability away from your club.
Insurance Requirements
Insurance is the funding source for the service provider’s indemnity obligations. Most service providers should carry the following types of insurance and provide proof before services begin:
• General Liability coverage with limits of one million dollars per occurrence and two million dollars aggregate
• Auto Liability coverage with a one million dollar combined single limit
• Workers Compensation with statutory limits
In addition, clubs should request and review evidence of specific endorsements on the service provider’s insurance policies:
• Additional Insured Endorsement for General Liability and Auto Liability. This adds your club to the vendor’s policy and gives your club direct protection and access to coverage if a claim occurs.
• Primary and Non Contributory Endorsement for General Liability and Auto Liability. This ensures the service provider’s insurance pays first if there is a claim, not your club’s insurance.
• Waiver of Subrogation on all applicable policies. This prevents the vendor’s insurer from trying to recover money from your club after paying a claim.
University Review
Before signing any contract for services provided on campus, the contract must be submitted through your Cal Poly Now Event Request for University review. Contracts should be submitted well in advance to allow time for appropriate review. We recommend submitting at least three to four weeks before your event.
Risk Management review contracts for student clubs to ensure that:
• The terms of the agreement are appropriate.
• The contract language protects the university.
• The indemnification and insurance requirements meet university standards.
Note: Some types of contracts cannot be approved by the University. If this occurs, Clubs & Organizations will notify your club and provide next steps. If revisions are needed, or if the contract cannot be approved, your club will be contacted through the Event Request.
Club Contracts Requiring Special Insurance
Some events may not be covered by the Club Liability Insurance Program. If your activity is not covered, your club may need to purchase its own insurance or obtain special event coverage through the CSU or a third-party provider for certain events. For more information, review Insurance.
The review process for contracts requiring special insurance may take thirty to ninety days depending on the nature of the activity, so plan ahead early in your event planning process.
Contract Process for Student Clubs
- Obtain a contract from your vendor or service provider.
- A club officer should initial any places where the contract indicates a representative would normally sign. This confirms the officer has read and understands the agreement.
- Submit the contract in your Event Request at least three to four weeks before your event.
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Risk Management will review the contract to ensure it meets campus requirements. They will inform your club if it is approved, needs revisions, or cannot be signed.
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Once approved, a club officer signs the contract and returns it to the vendor.
Payment Requests for Contracts
If your club will be paying a vendor based on a contract, your Purchase Request must include:
- A fully approved contract signed by both the vendor and the club officer
- The vendor’s contact information
- A clear description of the services or items being purchased
- Payment terms as stated in the contract
- The amount due
- A current IRS Form W 9 for the vendor. Contact ASI Club Services to determine whether a W 9 is already on file or if a new one is needed.
