Generally, as a matter of public policy and prudent risk management, the University requires its vendors to provide insurance coverage to cover its services and products. Any time a vendor will provide services on campus, appropriate insurance coverage includes workers compensation, general liability in specified limits, and automobile liability coverage. If the vendor is providing goods, products liability insurance coverage may be needed. If you have questions about minimum insurance coverage, contact your supervisor. 2. University’s Insurance Particularly in situations the University has possession of a lessor’s products, it may legitimately ask the University to provide certain insurance. (At UK, we are generally self-insured, but do have some forms of commercial insurance.) Because of the complexities of insurance policies and the need for careful compliance with existing policies, if an insurance clause is not contact Risk Management. L. RIGHT OF FIRST REFUSAL Rule: The University cannot contractually agree to allow vendors to meet or match another vendor’s price. Rationale: State statutes specify the method and manner of awarding new contracts, and a right to meet or match another vendor’s price would violate the procurement statutes. M. CONFLICT OF INTEREST Rule: With very limited exception, the University may not purchase goods, equipment or services from its employees, nor may an employee have an interest, directly or indirectly, in any purchase made by the University. Exceptions must be approved in advance by the Board of Trustees or Board of Governors. Rationale: State law and applicable regulations generally prohibit an employee from having such an interest. N. CONFIDENTIALITY CLAUSES
Generally, as a matter of public policy and prudent risk management, the University requires its vendors to provide insurance coverage to cover its services and products. Any time a vendor will provide services on campus, appropriate insurance coverage includes workers compensation, general liability in specified limits, and automobile liability coverage. If the vendor is providing goods, products liability insurance coverage may be needed. If you have questions about minimum insurance coverage, contact your supervisor. 2. University’s Insurance Particularly in situations the University has possession of a lessor’s products, it may legitimately ask the University to provide certain insurance. (At UK, we are generally self-insured, but do have some forms of commercial insurance.) Because of the complexities of insurance policies and the need for careful compliance with existing policies, if an insurance clause is not contact Risk Management. L. RIGHT OF FIRST REFUSAL Rule: The University cannot contractually agree to allow vendors to meet or match another vendor’s price. Rationale: State statutes specify the method and manner of awarding new contracts, and a right to meet or match another vendor’s price would violate the procurement statutes. M. CONFLICT OF INTEREST Rule: With very limited exception, the University may not purchase goods, equipment or services from its employees, nor may an employee have an interest, directly or indirectly, in any purchase made by the University. Exceptions must be approved in advance by the Board of Trustees or Board of Governors. Rationale: State law and applicable regulations generally prohibit an employee from having such an interest. N. CONFIDENTIALITY CLAUSES
Contracting_101_Handbook.docx