Policy on Outside Research Grants, Contracts and Consultancies

Consulting & External Activity

1. INTRODUCTION

The University has adopted the formula devised by the Australian Vice-Chancellors' Committee for establishing the full economic costs of research and consultancy work. All costing of all research projects, whether grants, agreements for contract research or consultancies, should be based on this formula. (For information on establishing the price to be charged for projects, refer to paragraphs 5, 6 and 7 of the Policy on Outside Research Grants, Contracts and Consultancies).

The main feature of the formula is that it includes a factor for calculating the indirect or overhead costs associated with any particular project. The factor is based on the salary costs of the academic and research staff working on the project.

Indirect costs include such matters as accounting, personnel, occupational health & safety and other administrative services, security, buildings and grounds maintenance, cleaning and garbage services, power, heat, water, ventilation, postage and freight, telecommunication services, ordinary library and computer services, office support etc.

2. THE FORMULA

The full cost of a project = direct costs + indirect costs.

2.1 Direct costs

2.1.1 Research staff payroll costs = total salaries for all academic or professional research staff to be engaged on the project (fractional time as appropriate) PLUS on-costs.

[The AVCC recommends adding 52% to salary costs to cover all salary on-costs such as appointment expenses, payroll tax, superannuation, annual leave loading, workers' compensation premiums, long service leave and other leave. The University generally works on the basis of 26% for on-costs.]

2.1.2 Other direct costs = total costs of:

• the total salaries of all staff, other than academic and professional research staff, to be engaged on the project, including secretarial and technical staff PLUS on-costs;
• all consumables proposed for the work, such as materials, supplies, components, parts, and animals;
• sample survey reports, minor building alterations, special library material;
• all services such as photographic, audio-visual, specialist computer (*) or electron microscope services, or use of outside services or agencies;
• project management services (if provided by the University);
• special space requirements (to be charged at commercial rates);
• building works;
• equipment costs (including freight, installation, maintenance, minor works);
• travel and field expenses;
• publication and reporting expenses (including printing, photocopying, binding and typing).

2.2 Indirect costs =

• in the case of workshop or laboratory-based research:

154% of the research staff payroll costs, excluding on-costs (see 2.1.1 above); OR

• in the case of non-laboratory-based research:

113% of the research staff payroll costs, excluding on-costs (see 2.1.1 above).
   

Footnotes:

*NOTE: Some computer software licences have been acquired specifically for academic use only. Their use for external, commercial, applied purposes would be in breach of the licence. Staff are requested to verify with the Information Technology Division the status of any software to be used in a commercial project before the project proposal is agreed with the outside body.

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Contact Information:
For further information contact Human Resources, Telephone: (08) 8303 5666 Fax: (08) 8303 4353.