Purchasing and Business Services Manual (PUR)

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Effective: 1/8/1987

Revised: 7/1/2018

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PUR 504–02: Contract Terms and Forms

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To prescribe the type of contract forms to be used for various procurements

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Arizona Board of Regents Policy Manual - 3-803
Purchasing and Business Services

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Specific contract terms and conditions must be included in all procurement contracts, and specific contract forms must be used for procurement contracts, including those for all consultants and independent contractors, and for construction-related work.

Required terms and conditions for contracts and general contract forms are on the Office of General Counsel website.

Service Agreements and Miscellaneous

Purchase Orders

A purchase order may be used as a contract provided ASU's required terms and conditions, and complete information related to the goods and/or services, are included on the purchase order.

Suppliers’ Contract Forms

Suppliers’ contract forms for service agreements, software licensing, and other miscellaneous services may also be used provided ASU's required terms and conditions are included and the contract does not contain clauses unacceptable to the university.

The chief procurement officer or a designee, shall determine if a contract is acceptable for university use.

Unacceptable Clauses
Generally unacceptable are clauses that:
  1. require the application of the laws of any state except Arizona in the interpretation, execution, and enforcement of the contract
  2. require the university to hold other parties harmless or to assume liabilities that may be incurred by other parties

    (Hold harmless clauses often may be identified by the word “indemnify” in the agreement.)

  3. state that the contractor’s terms prevail over any university terms in the event of conflict
  4. require the university to pay taxes other than sales or use tax
  5. extend the contract period beyond the date specified on the purchase order
  6. impose a penalty on late payments
  7. limit the liability of the contractor


  8. provide for binding arbitration of disputes unless conducted in accordance with Arizona Revised Statutes §§ 12–1501 to –1518 and the Arizona Board of Regents’ Policy Manual - 3-809 and that arbitration takes place in Arizona.

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For additional information on contract forms, see:

  1. PUR 402–01, “Personal/Professional Services”
  2. the Financial Services Policies and Procedures Manual—FIN 421–01, “Guest Lecturers, Consultants, and Other Independent Contractors”
  3. the Research and Sponsored Projects Policies and Procedures Manual—RSP 503–03, “Consultants, Lecturers, and Other Professional Services for Sponsored Projects”


  4. the Staff Personnel Policies and Procedures Manual—SPP 210, “Consultants/Independent Contractors.”

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