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Subcontractor vs. Consultant

A SUBCONTRACTOR is an organization that provides a significant contribution to the implementation of a project. The organizations are engaged through a documented agreement that includes provisions of work expectations, financing, compliance, and monitoring. There are separate expense categories for subcontractors depending on the size of the compensation amount. A subcontractor can also be called a "SUBGRANTEE" if the primary agreement between DePaul University and the Sponsoring Agency is termed a "Grant".

A CONSULTANT is normally an individual outside the DePaul University system who provides expert assistance from his/her own resources.

DePaul University considers subcontractors (or subgrantees) distinct from consultants and accounts for them separately.

The table below provides a brief description of a consultant compared with a subcontractor/subgrantee.

Consultant Subcontractor / Subgrantee
Can be an individual or an organization Must be an organization (DePaul does not enter into sub-agreements with individuals)
Provides mostly short-term expert advice and service. Provides an integral contribution to the project which normally lasts throughout the term of the grant
A "contributor" to the project A "collaborator" on the project
Normally not a recipient of project data rights Is normally granted rights in data for outputs resulting in the project
One-time payment on completion of services May have incremental payments based on performance and/or deliverables
Advances normally not allowed Advances can be considered
Normally not identified by name in proposal to funding agency Almost always included by name in proposal to funding agency
Utilization of payments normally not monitored Must adhere to budget provided to DePaul as well as to any applicable OMB Circular regulation.
Financial statements not required by DePaul Audit report required to be submitted to DePaul on annual basis


 


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