POLICY ON CONTRACT RESEARCH MANAGEMENT AT STELLENBOSCH UNIVERSITY
(Revised October 2009)

THE REGISTRATION, NEGOTIATION AND SIGNING OF RESEARCH AND RESEARCH RELATED CONTRACTS

The registration, negotiation and signing of third stream income research and research related contracts are described here. The process is schematically outlined in Figure 1. The process contains three phases, namely

1. Research contract presentation,
2. Procedural clearance of contract presentation,
3. Signing of contract, after which the project will commence.

PRESENTATION PROCESS OF RESEARCH CONTRACTS:

Negotiation between Client and Project Leader:

Contract:

The Project Leader (researcher / principal investigator) identifies opportunities for contract research presentations, or SU is approached by an external party (client) to do a project presentation. A standard contract, which is electronically available from the Division for Research Development, is sent to the client. If the client prefers to us an alternative contract, it should be sent directly to the Manager: Research Contracts, DRD, at this stage, who will manage the internal operation. The contract is registered on the Research Contract Registration database and a contract number is allocated to it. DRD will attempt to finalise some of the contractual sections, while the extent of the project is negotiated between the project leader and the client. Continuous communication with the client is an important success factor in the negotiations.

Budget including cost calculation, price estimation and levy calculation:

The project leader must determine the cost of the research, based on a full cost basis where applicable (refer to the Policy for Costing and Pricing of Research and Research Related Contracts). A template for calculation of cost, price estimation and levy calculation is available at DRD. Especially in the event where the client, without any prescribed terms from the government, wants to negotiate with SU about ownership of the Intellectual Property, care should be taken that the calculation of the cost is determined on a full cost basis. Advice by DRD and Finance Division is available on request.

Under the new Act regarding Intellectual Property Rights from Publicly Financed Research and Development Act, No. 51 of 2008, any research that is undertaken by private funding on a full cost basis, normally will not be subject to the concerned legislation. If the contract price however is not detemined on a full cost basis, the client can no longer claim the sole right to the intellectual property that might be developed from the research, but negotiations about the ownership, further development and commercialising of that intellectual property must comply with the terms of the said legislation.

Consultation with Finance Division:

The following issues (not limited to the list below) must be cleared by the project leader with the Finance Division, in consultation with DRD:

• VAT
• Physical transfer of property (eg equipment)
• Insurance
• Reimbursement of remaining funds after the project has ended
• Specific audit requirements as stipulated by the client

Final perusal of research contract by project leader:

The project leader ensures that all information required, eg the appendices, project extent (project description, project plan, project milestones and financial budget) are completed in full and are attached to the contract. The project leader must ensure that to all projects, where it is a requirement, the necessary ethical clearance is granted (refer to the Framework Policy for the Assurance and Promotion of Ethically Accountable Research at Stellenbosch University as approved by the Senate on 20 March 2009).  The project leader consultates with the Departmental Chair, Director and Dean about the extent, risks and covering of risks of the project.

Final perusal of research contract by Departmental Chair, Director and Dean:

The Departmental Chairs, Directors and Deans evaluate the merits of each research contract in terms of the goals of SU and the potential risks of the project, taking into account the risk management and insurance policy of SU. DRD is provided with their advice, input and approval (or not).

The project leader is responsible for the completion and delivery of the Declaration Letter to the dean and DRD. This step has as its objective that the Dean will ensure that the financial and operational risk of the faculty is fully and explicitly cleared and accepted on the concerned responsibility level(s), eg by directors on behalf of the institutes (by means of sufficient reserves in the concerned institute)

The dean, departmental chair, project leader and researcher then sign the declaration letter and thereby confirm that it:

(i)    has their approval that the project is executed in their environment,

(ii)   fits in with the scope of research of the environment,

(iii)  may involve the staff of the environment and

(iv)  may make use of the facilities / infrastructure of the environment (if applicable).


The declaration letter is not part of the contract between SU and the client and is only used for internal management in SU. Contracts will only be finalised by DRD after receipt of the fully signed declaration letter.

PROCEDURAL CLEARANCE OF CONTRACT PRESENTATION:

Risk analysis, negotiations and finalising of the research contract by DRD:

The Division for Research Development: Research Contracts evaluates all research and research related contracts on a risk analysis foundation, during which time a complete matrix of the potential risks for each contract is compiled and assessed, including the nature, value and term of the contract, established milestones, as well as financial risks concerning exchange rate, insurance, technical aspects, reputation, confidentiality, legal considerations, jurisdiction and termination. During this it is distinctly ensured that Intellectual Property is protected timely and strictly in accordance with the IP Policy, which lays the foundation for the future commercialisation of research outputs by InnovUS. Care is further taken that there is compliance at all times with the financial requirements as stipulated by the Financial Policies of SU. Consultation with InnovUS and Finance Division takes place where applicable, as well as with the relevant research environments. Contracts are negotiated and finalised for signature by reason of the risk evaluation.

The Manager: Research Contracts is the central point of enquiry for the project leader to determine the status of the contract at any stage. It is attempted to complete the procedural clearance of standard contracts within five work days.

SIGNING OF CONTRACT:

Before signing of research contracts the Vice-Rector (Research), deans and departmental chairs / directors will be informed by the Manager: Research Contracts regarding procedural clearance which followed the research contract to date.

Delegated signing authorisation

Departmental chair Directors of the institutes As delegated by the Dean	<= R150,000
Dean	<= R500,000
Vice-Rector (Research)	> R500,000

After the contract has been signed, it is handed to the Manager: Research Contracts. The Manager: Research Contracts notifies Finance Division (Budget Control) with the view to open a cost centre; consequently no invoicing can take place prior to a contract number being allocated.

Dispatch of signed contract to client:

The Manager: Research Contracts keeps a prelimanary copy of the contract for safekeeping, while the original signed contracts are sent to the client by the Manager: Research Contracts with the request to return one fully signed contract to SU for SU's records and audit purposes.

Signing by client:

After signing by the client one set of the contract is returned to the Manager: Research Contracts. The Manager: Research Contracts will ensure that the one original is in safekeeping at DRD and a copy of the contract is provided to the project leader and the dean.

COMMENCEMENT OF PROJECT:

Project management and administration of research project:

Income and expenses are accounted for according to the financial policy of the University and financial statements are compiled in accordance with the client's requirements, including the comparison of real cost and budget, taking into account the percentage of completion of the project. The project leader takes responsibility for the execution of the proposed research according to the agreed output criteria. DRD determines the state (percentage completion) of contracts on a regular basis and on an ad hoc basis the satisfaction of SU clients regarding the execution of research contracts.

Click here to view Appendix 1: Declaration Letter

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