There are many differences between purchase contracts and grants. The following table contains a number of them, and it can help define the instrument you want to apply for. NOTE: This article was originally published under: www.seechangemagazine.com/articles/how-to/743-grant-or-government-service-contract-what-is-the-difference The main difference between a grant and a contract is the donor`s expectation of the agreement. In a contract, you agree on certain outcomes and outcomes that your organization needs to achieve. If you can`t achieve them, you may have to expect effects. Contracts are normally used in the private sector when two parties reach an agreement on something that should be done. One party agrees to pay a certain amount of money and the other party agrees to perform the task. So what`s the downside to getting the government as a customer? First, if you don`t puncture, you can find another supplier. Financing agreements are usually set for one year, but contracts can be broken due to poor performance.

There may also be additional requirements for government service contracts, including proof of liability insurance, documented prior experience, including customer references, and possible security releases for employees, to name a few. The Federal Grant and Cooperative Agreement Act of 1977 (P.L. 95-224, 31 USC 6301 et seq.) makes the fundamental distinctions between purchase contracts, grants, and cooperation agreements. The difference between a contract and a grant relates to the legal notion of default and the researcher`s legal obligation to obtain results or not. Ah, and the tender for contracts has the opportunity to dream of all contracts: the permanent offer or the retainer agreement. . . .