What is the difference between a subcontract and a consulting agreement?
A. The primary difference is that a subcontract is almost invariably with another institution or with a company, and a consulting agreement is almost invariably with an individual (non-Ga Tech employee). Subcontractual effort usually entails the transfer of a complex portion of the primary project to be performed at another institution (non-Ga Tech employee). The agreement usually involves the other institution’s full project costs, including its negotiated Indirect Cost (Facilities & Administrative) Rate, and comes to us with a statement of work, full budget and a “letter of intent” to perform the assigned task should an award be made. Consulting effort is usually limited to the performance of an “advisory” type activity by one individual. Activity is generally short term or infrequent and the pay line is usually determined by a rate per day which includes travel, expenses, and any other overhead. Consultants set their own hours, use their own equipment and materials, choose their wor
