• Personal services provided by an individual or group of individuals
• Consultant services.

Note: If payment for a personal service is made to a company and not an individual, the service cannot be purchased as a personal service and must be purchased in accordance with Procedure PUR 1.30.   Procedure PUR 1.30 addresses most contractual services including, but not limited to, personal services performed by a firm and maintenance and service contracts.

• Applies to all university departments or activities.

 
• Types of services covered by this procedure:
 
a.    Personal services provided by an individual or a group of individuals who are not university employees.  A personal service provider is a professional individual (person) including, but not limited to, performers of the fine arts, speakers, presenters, and similar professionals who provide services on a temporary or occasional basis. A personal service provider may also provide consultant services, but consultant services are governed by more stringent policy.

b.    Consultant services.   Consultant (or advisory) services are personal services that are performed primarily to provide counsel, review, analysis, or advice in formulating or implementing improvements in programs or services. Consultant services are performed by independent contractors possessing specialized qualifications to investigate assigned problems or projects.

a.    State agencies shall acquire contracted personal services or consultant services only if such services cannot be reasonably accomplished by employees of the agency requesting such services.

b.  Employees of other state agencies cannot be paid for personal services or consultant services in accordance with Procedure PUR 1.40. Such payments are subject to the North Carolina Dual Employment Policy. Contact the Director of Resource Management-Academic Affairs for EPA-related assignments or the Director of Human Resources Administration for SPA-related assignments.

c.    Retired state employees who provide personal services or consultant services are subject to requirements of G.S. 135-3(8)c. If contractor status is determined, the Comptroller should be notified to ensure UNCW is in compliance with General Statutes regarding re-employment of retired state employees.

2.  Required Approvals.

 
a.  Personal Services Performed by an Individual.   Before making any formal commitment for personal services, the department must obtain approval from Human Resources. (See Independent Contractor Payment Certification form and corresponding preparation instructions.) Human Resources will determine whether an employer/employee relationship exists (see Procedure statement 4) or whether a personal service contract applies. For ease of processing, departments or divisions may seek blanket approval from Human Resources for certain types of services.

b.   Consultant Services.   Before making any commitment to a consultant, any university department contemplating hiring a consultant should contact the Director of Purchasing Services for assistance. Consultant services are governed by special regulations from the State of North Carolina and require special approvals.
 

If payment of $2,500 or more is made to an individual (or a group of individuals) for the performance of personal services, a contract approved by Purchasing is required.  All such contracts (or agreements for personal services for less than $2,500) must be prepared according to published guidelines, which are available in the Purchasing office. The final university decision-making authority regarding any phase of procurement or the performance of any contract has been delegated to the Director of Purchasing Services. Any circumvention of these procedures may result in voiding of the contract.

 
Work or tasks performed on behalf of the university are normally accomplished by individuals who are hired as university employees and paid on the university payroll. At times, however, a true employer/employee relationship will not exist between the university and the service provider. In these cases, contractor status may be applicable.

Contractor status applies when the contractor has the right to control and direct both the result of the services and the means by which the result is achieved. This means that the contractor has behavioral control over how the work is performed and that the contractor also has financial control over how the business aspects of the work activities are conducted. The Director of Human Resources Administration will make the final determination whether independent contractor status is appropriate for any individuals hired.

5.  Conflict of Interest.

No public official or employee is to benefit from any contract with the university, and no current or prior personal/professional relationship shall exist with the contracted service provider that would constitute a conflict of interest for the university.

 
a.    Any university department seeking to hire an individual or group of individuals to perform contracted personal services must obtain approval from Human Resources prior to making any formal commitment to the individual.For repetitive services, departments or divisions may contact the Director of Human Resources Administration to request blanket approval. If blanket approval has not been obtained, the department must complete Section I of the Independent Contractor Payment Certification form and submit the form to Human Resources for approval. If payment to the individual(s) is $600 or more, the department must attach a biographical sketch or statement of qualifications to the Independent Contractor Payment Certification. If payment to the individual(s) is $2,500 or more, the department must also attach a photocopy of the contract approved by Purchasing Services.

b.   If Human Resources determines that an employer/employee relationship exists, the individual shall be compensated as a temporary employee under the policies outlined by Administrative Procedure HR 1.30.

c.    If no such employer/employee relationship exists, Human Resources will return the approved Independent Contractor Payment Certification to the department indicating that the department may extend a commitment to the individual.

d.    Upon satisfactory completion of the services, the department should review Sections I and II of the Independent Contractor Payment Certification to ensure documentation is accurate and contains required approvals. The department then must complete Section III of the Independent Contractor Payment Certification, prepare a Check Request (see Procedure ACG 1.50), and forward both forms to the Comptroller to initiate payment to the individual(s).

2.   Consultant Services.

 
Any university department contemplating hiring a consultant should contact the Director of Purchasing Services for assistance before making any commitment to a consultant. To ensure that the university abides by the special regulations and special approvals governing consultant services, the Director of Purchasing Services will advise the department head of procedures to be followed on a case-by-case basis.

Note: This form must be approved by Human Resources prior to making a formal commitment to the independent contractor.   If blanket approval has been obtained for repetitive services, approval on each form is not required. Departments or divisions should contact the Director of Human Resources Administration to request blanket approval.

• Order two-part NCR forms from the U-Business Web site.
• Click here to go to the Independent Contractor Payment Certification form in PDF format.  You may then fill out the form on-line and print for signature; or you may print a blank copy of the form ready to fill out by hand or typewriter.

 
If blanket approval has not been received:
• Forward the Independent Contractor Payment Certification to Human Resources, along with applicable attachments.
•  If contractor status does apply, Human Resources will complete Section II and return the approved form to the department indicating that the department may extend a commitment to the individual(s).


If blanket approval has been receivedfrom Human Resources:

• The department will check the appropriate box in Section II and extend a commitment to the individual.

2.      Upon satisfactory completion of the work:

• Complete Section III of this form.
• Prepare a check request to initiate payment to the individual(s).
• Attach the original Independent Contractor Payment Certification (with all signatures) to the check request, and forward both forms to the Comptroller.
• Retain a copy of the Independent Contractor Payment Certification for departmental records as needed.