Grants and Contracts
Often within the research community grants and contracts are viewed synonymously when, in fact, grants and contracts are quite distinct.
What is the difference between a contract and a grant?- The difference is not about the dollar amount, or the name of the agreement or about the kind of research being done.
- The difference relates to the legal concept of default and whether one is legally bound to produce results (deliverables) as in a contract or whether you are granted funds from a sponsor to do something with no requirement of results. A contract is a legally binding document in which the parties make promises to deliver a result in exchange for money.
- Funds are “granted” to a researcher by a sponsor, with an expectation – but not the requirement - that the task can be accomplished. If the task is accomplished - great, everyone is happy and it may lead to more grant funding. If the task is not accomplished there are likely no ramifications to the researcher or the institution.
| GRANT | CONTRACT |
| Usually a simple award letter | Legally binding agreement |
| Research proposal is well defined but normally there is no formal agreement | A defined scope of work/research plan, obligations and responsibilities |
| Likely no confidentiality restrictions | Requirement to sign confidentiality agreement ie. Proprietary data or knowledge (NDA) |
| Ownership of any intellectual property resides with the institution | Foreground intellectual property and ownership are clearly defined and option to license granted to the sponsor |
| Unrestricted rights to publish research results without pre-review or time delay involving the sponsor | Restrictions on Publication Rights such as pre-review by sponsor |
| Annual renewal - No termination provisions | Termination provisions |
| Flexible time frame; no detailed schedule of work. Research proposal and direction of research lies with the researcher | Detailed work schedule, including milestones and date for final deliverables. Restrictions on scope of research |
| Few deliverables (progress/final report?) | Specific deliverables, report requirements and timelines defined |
| Payment in advance generally lump-sum payments (not based on deliverables not a reimbursable basis) | Payment may be made in arrears and tied to milestones and deliverables. Little budget flexibility – establishes firm, detailed budget |
| The project/budget can be changed by the principal researcher without notice | Changes to scope of work/budget requires consent of sponsor |
| Generally no honorarium for principle investigator | Investigator honorarium may be included in budget |
