Budget Development Resources


Michigan State University both issues and receives subcontracts. MSU issues a subcontract when a portion of the scope of work (SOW) will be performed by another entity and that entity will retain rights to their intellectual property. The subcontract outlines the work to be done, how much will be paid to the partner institution over what time period, invoicing requirements, and any special terms and conditions such as an advance of funds.

Subcontract vs Consultant

Which do you use when?

  • Subcontract is used if the relationship is ongoing rather than a one-time event
  • Consultant is used if it is a one-time event, such as a review, analysis, etc.

What needs to be done at the proposal stage:

  • Subcontracts need
    • Scope of work: a list of the subcontractor's tasks and deliverables
    • Institutional commitment: a letter from the subcontractor stating that they are willing to commit to the project if funded
    • Budget: include the subcontractor's F&A if applicable
    • Budget justification
    • Subrecipient Commitment Form with COI assurances
  • Consulting agreements need
    • Letter providing details about services to be provided
    • Rate schedule: specify hourly rate
    • Administrative support costs as shown in the budget

What if I still don't know which one to use?

  • Contact Bart Moore