Issue link: https://htpgraphics.uberflip.com/i/392125
Funding Section 3 18 n VAT Any amount paid to your institution for research (whether in cash or in kind) is likely to be subject to VAT. Your Research Contract should therefore provide that you can charge VAT in addition, where it is applicable. This is not usually a problem for your funder as they will often be registered for VAT and can in turn claim it back. If the funder of the research is another "eligible body" for VAT purposes e.g. another university or a Government department, then VAT will not be charged. You should leave it to the finance specialists in your institution to look at these issues. n Liability If someone pays you to do something, they will be more concerned that you are doing it correctly than if you were doing it for free. If you do not perform properly or are late or fail to perform at all, the other party to the contract could sue for damages. They may withhold further payment under the contract and may be entitled to claw back payments already made. To protect you and your institution, the Research Contract should also include some limitation of liability provisions. The funder may ask for warranties or indemnities. These must be reviewed by the experts in your institution so that you do not expose yourself or your institution to unnecessary liability. It is common to highlight the novel nature of the research and to say that results cannot be guaranteed and the funder uses such results at its own risk. Liability is often tied into or limited to the amount of funding received by the institution and indirect and consequential loss is excluded. Limiting liability is complex. There are specific legal rules relating to it. You should make sure that any such provisions are checked by someone who is expert in such rules. Changing one word can sometimes undermine the whole limitation.