Policy on consultancy and service work

1. Introduction

The University encourages and supports its staff to engage with Consultancy and Service work for outside organisations. Consultancy and Service work has the potential to provide many benefits for the University, for the individual staff doing Consultancy, the wider academic community and for our student population. These benefits include –

• income generation,
• increased opportunities for external collaboration,
• personal and professional development for staff,
• detailed case studies to inform student teaching,
• enhanced reputation of the University and
• increasing the University’s impact via economic and societal impacts that contribute towards assessments such as the Research Excellence Framework.

However, it is important that the University clearly defines the governance and administrative arrangements for undertaking Consultancy and Service work and this is the purpose of this policy document.

A summary of the workflow to implement this policy is shown in Appendix 1.

2. Eligibility to Undertake Consultancy or Service Work

Only the following full or part-time staff employed by the University may undertake Consultancy or Service work on behalf of the University:

• academic staff ;
• professional service staff.

In addition, for those staff on externally funded contracts, where the contract with the funder allows for such additional work, there is the additional requirement for the express permission of their supervisor/ line manager, where this is not the Faculty Vice Principal.

To avoid any misunderstanding the following are not permitted to undertake Consultancy or Service work on behalf of the University, nor using the University’s name:

• honorary staff;
• students (undergraduate and postgraduate).

For the purposes of this policy document the term “member of staff” shall mean the full or part-time academic, professional service and research staff who have been given the express permission of their supervisor/ line manager.

3. Definitions of Consultancy and Service Work

Consultancy is defined as the undertaking of work by the University’s members of staff within their professional areas of expertise using existing knowledge for companies and other organisations outside of the University. Consultancy will normally be short term, time limited by contract, does not generate additional IP and will be directed towards advising an external organisation.

Consultancy also includes the provision of expert witness work and the provision of lectures, presentations and related Q&A where requested by external organisations for their internal company development purposes.

Service work is defined broadly as provision of a service for a company or an organisation outside of the University that goes beyond the provision of advice based on existing knowledge. Service work typically creates data, tangible materials and/or new understanding/IP for the contracting party. Service work typically requires access to more University facilities beyond the typical office equipment that all members of staff have access to.

Examples of Service work include but are not limited to:

(i) testing, evaluations or analytical work using University equipment or facilities;

(ii) analysis, evaluation and reporting on information provided by an external organisation;

(iii) the development of training or similar materials for an external organisation;

(iv) supply of specialist materials or equipment to external organisations.

Service work may include Continuing Professional Development (CPD) activity, where the activity is for an external body

The above definitions of Consultancy and Service work are not intended to be exhaustive.

4. Activities Forming Part of the Wider Academic Endeavour

Consultancy does not include activities undertaken, whether paid or unpaid, which form part of the wider academic endeavour such as:

1. Reviewing publications, grants or participating in review panels
2. Appearances in the media e.g. television, writing an article for a newspaper or magazine (except where the article is for a corporate in-house publication not made available to the general public)
3. External examining duties for other institutions or professional bodies
4. Acting in an advisory role for a publishing house, Research Council, Funding Council, charity (or their committees) or professional body associated with the individual’s role
5. Lectures or presentations for other universities and academic or related professional conferences

Where such activities noted above are paid, staff can take the payment personally without reference to the University but staff must also deal with their own tax affairs.

5. Permitted Consultancy and Service Work

It is a requirement that all Consultancy and Service work for external bodies undertaken by staff is recorded and is transparent to external review, including Freedom of Information enquiries, and therefore formal approval for all such work must be given.

The University requires to have in place appropriate arrangements to assure the quality of work for external organisations, and to ensure that its contractual obligations to third parties can be met, including in the event of a member of staff originally undertaking the work being unable to complete the work.

In undertaking Consultancy work on behalf of the University, the consultancy agreement does not constitute additional employment by that outside body.

Members of staff will not be indemnified or insured by the University in circumstances where formal approval for any Consultancy or Service work for external organisations has not been obtained in advance.

If an employee is in any doubt as to whether the work they propose to do falls within the definition of Consultancy, or Service work for external organisations within this policy, and therefore whether such work should be disclosed and approval sought, the employee should seek the advice of Research and Innovation Services.

6. General Considerations (Consultancy)

Consultancy prices quoted to outside organisations should both cover the full economic cost of the work and reflect the recommended minimum day rates for academic staff time for undertaking Consultancy issued annually by RIS/RFS.

The minimum day rate will be set to ensure that costs are fully recovered. The price charged can be higher taking into account the unique expertise of the individual, commercial value to the external body or other factors; these should be explored and discussed with RIS.

Any payments due to members of staff in respect of their Consultancy activities will only be made through the University's normal mechanism for the payment of salaries and after payment has been received from the outside organisation.

Personal Payments received from Consultancy activity to members of staff which are greater than £10,000 in any one University financial year shall require the prior written permission of the Director of Finance, who will take such advice as they deem necessary.

Any equipment purchased in connection with a Consultancy and paid for by the outside organisation remains the property of the outside organisation and should be offered back at the conclusion of the work, unless otherwise agreed in writing by the outside organisation.

In accordance with the University’s Conflict of Interests Policy, members of staff must make a formal Declaration of Interest where Consultancy is proposed with a company, partnership or other body in which they or their family have a known financial or other interest. This must be done before any Consultancy is authorised.

7. Time Permitted for Undertaking Consultancy or Service Work

There is no formal entitlement to time for Consultancy, as it is a matter which must be determined in the light of the circumstances in any particular Faculty/Institute, coupled with its obligation to meet its research and teaching commitments.

Conversely, there is no set limit on the maximum amount of time that a member of staff may commit to Consultancy or Service work, however, each request to undertake Consultancy or Service work must be approved in accordance with the provisions of section 9 and 10 below. As part of the approval process, the expectation will be that the Consultancy and Service work will not adversely impact on existing teaching and research commitments.

8. Private consultancy

This policy will not apply to any consultancy undertaken by a staff member for remuneration or other consideration in their private capacity (i.e. undertaken outside of their usual working hours, not using University resources and in areas of activity clearly outside of the role for which they are employed by the University) whether personally, or through a directorship, partnership, private company, trust, or any similar entity (Private Consultancy).

Private Consultancy must be notified in writing, in advance of the work starting, to the relevant Faculty Vice Principal, Director or UEG member according to the seniority of the staff member undertaking the Private Consultancy. All relevant details of the proposed Private Consultancy should be provided (nature of the consultancy, the organisation and a statement that it does not require access to intellectual property or other property or information of the University). Approval will normally be deemed granted, however staff undertaking Private Consultancy do so at their own risk and must note the following:

• They will need to negotiate the terms of appointment themselves and take any legal advice at their own cost and risk.
• They will NOT be covered by the Professional Indemnity Insurance or any other insurance that is normally provided by the University for Consultancy.
• Staff are entirely responsible for undertaking their own Due Diligence and for meeting any legal requirements such as Export License, working with sanctioned countries or other frameworks that may apply.
• They are responsible for ensuring that there is no interference with, or compromise of, their contractual responsibilities to the University. This includes ensuring that must ensure that the Private Consultancy is performed outwith the role for which they are employed by the University, and in their own time and using their own IT and other facilities.
• In some circumstances they may be required to indemnify the University should any costs, claims, damages or expenses be incurred by the University as a consequence of the Private Consultancy.
• They must make it clear to the external organisation that they are performing the work as a private individual and not as a University employee. The University’s name and/or endorsement (including use of headed paper, University business cards, and other branded materials) must not be used.
• They are responsible for ensuring that the conduct of the Private Consultancy does not use or compromise intellectual property that belongs to the University.
• The University will have no responsibility for any tax, national insurance, interest or penalties payable in connection with the work and therefore the member of staff shall be solely responsible for declaring their income and paying all such tax in relation to undertaking such work.
• No use may be made of intellectual property, facilities, resources, equipment or premises belonging to the University whilst undertaking such Private Consultancy.

Staff undertaking Private Consultancy must also note that disciplinary action may be taken by the University in the following events:

• That University time (including that of the staff member) or University facilities (including offices or IT equipment) or intellectual property are used;
• That a Staff member does an activity falling under the definitions of University Consultancy or Service via a Private Consultancy;
• That a Staff member contravenes the University’s Conflict of Interest Policy in carrying out a Private Consultancy;
• That the member of Staff’s Private Consultancy is seen to damage the reputation of the University.

Staff undertaking Private Consultancy should also note that a failure to follow the policy may result to investigation being undertaken under the University's disciplinary procedures

9. Criteria for Assessment of Proposals

When a Consultancy and Service work proposal is put forward for permission to proceed, the following general criteria will be used:

1. the degree to which the project is consistent with the good reputation of the University;
2. the financial and reputational aspects of the outside organisation involved (“Due Diligence”);
3. the extent to which the project will help achieve the strategic objectives of the Faculty, or University;
4. the cost and proposed pricing for the project charged, which will be informed by market conditions and the benefits to the University of undertaking the project;
5. the number of days to be committed to the project and the dates of undertaking the work;
6. other professional work commitments of the member of staff during the period of the project;
7. any conflicts of interest, and in particular whether or not the member of staff has any interests, financial or otherwise, in the external party commissioning the project or any other body or individual associated with it.

Additional criteria for assessing a proposed consultancy project:

1. the proposed internal distribution of expected surplus income, including any personal payments (section 12 refers);
2. the significance of a new relationship with an outside organisation and the value it can bring to the University;
3. current and other proposed consultancy commitments of the member of staff and associated income, including any personal payments.

10. Formal approval Routes for Consultancy and Service Work 

The approval route for consultancy and service will depend on whether the activity is classed as simple or complex, using the criteria below

For Consultancy and Service work to be classed as simple it must meet all the following criteria:

1. Overall value of the Consultancy is not more than £10,000, including any other activities for the same external body within the preceding 12 month period;
2. There are no adverse issues identified as part of the due diligence process;
3. The Faculty Vice Principal or their nominee supports the time commitment of the Consultant, the overall balance of the Consultant’s contribution to the Faculty, and the treatment of the Consultant’s portion of the income (see Section 12 below);
4. There are no potential conflicts of interest;
5. Staff time has been priced using published Day Rates as the MINIMUM that should be charged. The minimum rates to be charged are given in Appendix 2 and will be reviewed on an annual basis;
6. An approved University Standard Consultancy Agreement is used without modification, other than insertion of the name of the outside organisation paying for the Consultancy and insertion of the schedule of work to be performed.

In exceptional circumstances, where the work is with an outside organisation who the University has worked with on an on-going basis and which insists on using its own standard contract, this may be deemed simple where RIS has previously approved the outside organisation’s standard contract and the contract has not changed.

For consultancies defined as simple consultancies, approval will be via the relevant Faculty Vice Principal and RIS will issue a standard contract for signature without any further review of the contract or costings.

Any consultancy where one of these criteria are not met, will be classed as complex.

For complex consultancies, these should be referred to the RIS as soon as possible, who will liaise with the member of staff and Faculty Vice Principal to review the costings and issue a relevant contract as required. This may also involve negotiation of a price, particularly where there is a potential conflict of interest or competing priorities.

In exceptional circumstances and where there is robust evidence that the consultancy will prime future funded activity, a price below the FeC may be agreed. In these cases, there will be no disbursement of fees and a list of all such contracts will be included in the annual report to the University Enterprise and Economic Transformation Committee.

In both simple and complex cases, the agreement on the disbursement of fees should be made at the point of approval and reported to RIS.

11. Service Work

Where a new piece of work is categorised as Service, the proposed work must be discussed by the member of staff with RIS and RFS at the earliest stage to determine how it should be treated.

Where there are Services that are repeat activities, for example testing of materials or production of materials, then subject to Faculty Vice Principal, RIS and Finance approval, repeat business may be transacted on an agreed basis, recorded in writing and lodged with Faculty Vice Principal, RIS and Finance without requirement for further approval case-by-case.

12. Disbursement of funds

The income of the consultancy will be returned to the unit(s) where the cost was incurred. Once the unit has recovered the costs, any remaining income will be split, so that the unit retains 50% and member of staff can receive up to the remaining 50%.

The member of staff may take their portion as a personal fee, in which case it is paid through payroll and subject to tax/ NI etc as normal. This payment is treated as non-pensionable income. Alternatively, the member of staff may be allocated an internal budget for the amount of their portion on the condition that it is used in direct support of her/his academic duties e.g. to support research studentships, to attend conferences and that the funds are spent within 12 months, in line with University good financial practices. Where a member of staff agrees for their allocation to be allocated to an internal budget and no personal payment is made, the Faculty can agree that the total income (including costs) is split 50/50.

The is currently no disbursement of income from Service work.

13. Approval Process

A member of staff wishing to undertake Consultancy or Service work must discuss the proposed project with their Faculty Vice Principal/Director as early as possible and prior to any commitment of undertaking. It is the responsibility of the Faculty Vice Principal/Director to review such a request utilizing the relevant criteria stated in section 9 above.

Subject to the Faculty Vice Principal/Director receiving sufficient information in response to the criteria stated in section 9, and the full economic cost being recovered (section 10 refers), the Faculty Vice Principal/Director will make a decision on whether or not the proposed Consultancy or Service work project can proceed. Where the price of the work is such that the full economic cost is not recovered, this must be approved by the Vice-Principal (Research and Innovation). Where a personal payment is being requested, this must be agreed at this stage.

Should the member of staff disagree with a decision of the Faculty Vice Principal/Director to not support the proposed Consultancy or Service work project, he/she may submit an appeal to the Vice-Principal (Research and Innovation). This must be submitted in writing and within 20 working days of receipt of the decision of the Faculty Vice Principal/Director. The decision of the Vice-Principal (Research and Innovation) will be final.

14. Reporting to the University Committees

RIS shall maintain records of all Consultancy and Service work approvals and undertakings and shall be required to report on levels of Consultancy and Service work activity across the University.

A report on Consultancy and Service work undertaken and governed by this policy will be prepared in conjunction with Finance and submitted annually to the University’s Enterprise and Economic Transformation Committee. This will include, by Faculty and professional service, anonymised details of the number of collaborations entered into, price charged and income distribution.

15. Withdrawal of Approval

Approvals granted under section 7 may be withdrawn at any time should it be judged by the University that a particular circumstance requires such action. The Principal will make the decision on withdrawal, informed by the views of the relevant Faculty Vice Principal/Director, or the University Secretary with respect to professional service staff, and the terms of contract governing the Consultancy or Service work project in question.

If a Consultancy or Service work undertaking is entered into by a member of staff without the necessary approvals as stated in this policy, the member of staff may be subject to disciplinary proceedings. The University disclaims all liabilities in circumstances where work is undertaken for an external party without prior institutional approval.

Appendix 1: Workflow for Consultancy and Service Work

1. Initial actions

   • The member of staff checks their eligibility to undertake consultancy or service work (see section 2).
   • The member of staff confirms that the proposed project meets the definition of consultancy or service work (see section 3).
   • The member of staff discusses the proposed project with their Faculty Vice Principal or Director as early as possible and before making any commitment (see section 13).

2. Project proposal

   • The member of staff outlines the project in line with the criteria for assessment (see section 9).
   • For consultancy projects only, the member of staff establishes a proposed disbursement of the expected surplus income (see section 12).
   • For service work projects only, the member of staff discusses with RIS and RFS how the work should be treated (see section 11).
   • All consultancy and service work projects must be recorded for transparency and formal approval (see section 5).

3. Due diligence

   Members of staff follow the University’s policies and governance procedures for new and existing partners.

4. Approval

   • Projects are classified as simple or complex (see section 10).
   • In both cases, agreement on the disbursement of fees must be made at the point of approval and reported to RIS.
   • Simple projects are approved by the member of staff’s Faculty Vice Principal or Director.
   • All complex projects are supported by RIS, who liaise with the Faculty Vice Principal or Director for review and approval.
   • Service work activities require approval from the Faculty Vice Principal or Director, RIS and Finance. Repeat business may be transacted on an agreed basis and recorded in writing without case-by-case approval.

5. RIS support

   • For approved simple projects, the member of staff contacts RIS to issue a standard contract for signature.
   • For complex projects, RIS liaises with the member of staff and Faculty Vice Principal or Director to review costings and issue the appropriate contract.
   • If uncertain whether the proposed work is consultancy or service work, the member of staff contacts RIS for advice (see section 5).
   • RIS provides support in negotiating higher rates than the minimum day rate (see section 6).

6. Contractual agreements

   Contractual agreements governing the work must be in place and fully signed before any project activity commences.

7. Live project

   Project activity commences. Finance raises invoices in line with the terms of the agreement and manages the disbursement of funds as agreed and in accordance with normal University mechanisms (see sections 6 and 12).

8. Reporting

   A record of all consultancy and service work approvals and undertakings is maintained. RIS reports on activity levels across the University. An annual report is prepared in conjunction with Finance and submitted to the University’s Enterprise and Economic Transformation Committee (see section 14).

Appendix 2 

Day rates                 

Commercially sensitive – Not for publication