Introduction
Purpose
The reason for this policy is to provide flexibility of mitigating risk associated with key procurements that require satisfactory delivery and installation by the vendor.
Scope of Applicability
All University of North Carolina at Chapel Hill ("UNC-Chapel Hill" or "University") Faculty and Staff.
Policy
Policy Statement
It is occasionally in the best interest of the University and the State of North Carolina to delay payment of outstanding invoices. These situations typically involve large dollar amount procurement where final receiving and approval for payment (i.e. "contractual acceptance") is contingent upon satisfactory delivery and installation by the vendor.
Final approval and acceptance of these orders will be authorized by the requesting University department using criteria that have been predetermined and agreed to by the vendor, the end user, and the UNC-Chapel Hill Department of Purchasing Services.
Exceptions
This policy should not be used for any of the following:
- Term contract items;
- Standing or maintenance orders;
- Catalog, stock or off-the-shelf items; and/or
- Any purchase less than the Small Purchase Benchmark as defined in Finance Policy 1251: Small Order Policy.
Additional Information
Special Situations
None.
Frequently Asked Questions
Q: We have ordered equipment for a new building but the building is not ready. Can we pay the vendor while they hold the items in storage?
A: No, items must be received by the University before payment can be made.
Q: What happens if I am not satisfied with the vendor's installation work or they are not able to meet the performance criteria? May I reduce the payment to them?
A: Yes; provided the contract or agreements allow for withholding and/or deduction penalties due to poor performance or unreasonable project delays.
Related Requirements
External Regulations and Consequences
University Policies, Standards, and Procedures
Contact Information
Policy Contact
Subject |
Contact |
Telephone |
Fax |
E-Mail |
Purchasing Services |
Purchasing Services - Goods |
919-962-3774 |
919-962-0636 |
purchasing_team@unc.edu |
History
Revised:
- May 10, 2022
- February 28, 2020
- February 28, 2018
- October 3, 2014
- October 1, 2014: Removed withhold payment and progress payment information.
- November 18, 2003