Contracting for Services

The university issues Contract for Services (CFS) to individuals, small businesses (unregistered or a limited or incorporated company (“Contractor”) in order to provide services to the university. The purchase order (PO) and its associated terms and conditions, approved by Procurement and Contract Management (PCM), ensure that the contractor has a clear understanding of their obligations, including the specific services to be provided.

Requirements of all U of A Units

Includes units, departments, faculties and central units

All units are required to follow the directions from PCM when using a CFS to complete work at the university. This includes:

1. Prior to beginning work, a SupplyNet requisition must be completed
2. Effective April 1, 2022, If the value of the agreement is between $20,000 to $75,000 multiple quotes are required and must be submitted with the requisition
3. If multiple quotes cannot be obtained the completion of the Sole & Single Source Justification form is required and must be submitted with the requisition
4. Work may commence only once the purchase order has been created and approved 

Procurement and Contract Management provides oversight and direction for all CFS agreements. All units are expected to follow the outlined processes and cannot do the following:

1. Submit invoices without a previously issued purchase order
2. Sign contracts of any type (this role in all cases is completed by PCM)

Additional Information

For individuals and small businesses, the U of A business unit must ensure that the criteria for a CFS can be met in order to safeguard the University from the potential liability associated with the wrongful categorization of work. The completion of a Determination of a Worker's Status Checklist provides the information needed to determine the nature of the relationship, ensuring that it is not an employee-employer relationship. A CFS should not be issued to anyone who meets the criteria for an employee relationship. In those cases, Human Resource, Health, Safety and Environment (HRHSE) should be contacted and HRHSE employment procedures followed.

Limited and incorporated companies are considered contractors, as are individuals and small businesses that have a contractor relationship as per the Determination of a Worker's Status Checklist. In all of these instances, the business unit should initiate a CFS via SupplyNet. Any contract $75,000 and greater will also require a Service Agreement that must be signed (by PCM) prior to work commencing in order to ensure the unit is compliant.

Proposed services in excess of Competitive Bid Thresholds equal to or greater than $75,000 are subject to a competitive bid process as outlined in the Competitive Bid and Competitive Bid Exception Procedure.