Contracts

Contracts are generally more restrictive awards than grants. Usually, contracts require signatures by both the sponsor and the University to be binding and require defined deliverables on a specific schedule.

The two basic types of contracts are: 

• Cost Reimbursable 
  • Cost Reimbursable contracts specifically state the maximum (not-to-exceed) level of funding that a sponsor will provide. If actual project costs to complete the statement of work are less, UNT will only be reimbursed for actual incurred costs. UNT reports only on costs incurred up to the maximum amount. Additional funding requires contract modification. 
• Fixed Price 
  • Fixed Price contracts are for a specific dollar amount, regardless of the actual cost to complete the full scope of work. The University is paid the full amount specified in the contract. If the PI completes the work for a lesser cost, the University may retain a portion of the amount of funding. If costs are greater than the contracted amount, the University is still required to complete the full scope of work, and the PI becomes responsible for paying the difference (any un-funded costs).Learn more about Fixed Price in Contracts.