Note: The information on this page and any linked reference page has not yet been updated to reflect changes that may be required by the Canadian Free Trade Agreement (effective July 1, 2017, replacing the Agreement on Internal Trade), the Canada-European Union Comprehensive Economic and Trade Agreement (effective September, 2017) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (effective December 30, 2018). This work is ongoing, and will be made available as soon as it is complete. In the meantime, government staff are advised to contact their ministry procurement specialist, Procurement Services Branch, Procurement Governance Office, Ministry of Jobs,Trade, and Technology, and/or Legal Services Branch for advice on how to ensure compliance on specific procurement projects.
During the contract term, the contractor and the ministry will be working together. Ministries will assign a contract manager to oversee the contract. The contract manager is tasked with ensuring that everything stays on track throughout the entire term of the contract.
More information on administering and monitoring contracts can be found in section 6.3.6 of the Core Policy and Procedures Manual (CPPM).
Ministries may have policies, processes and guidance that are specific to the types of contracts that they hold and therefore differ from the corporate information provided here. For those ministries where this applies, refer to the ministry links at the right, or contact the ministry's Procurement Specialist.
- Contract Monitoring
- Contract Reporting
- Receipt of Goods
- WorkSafeBC (WSBC)
- Tax Verification Letter
- Contract Modifications
- Terminating a Contract
- Contract Disputes
Remember to Post a Contract Award Summary
Section 6.3.3.b.11 of the CPPM states that ministries are required to post contract award summaries for all competitive solicitations posted to BC Bid. If the solicitation was on BC Bid, follow the steps found here to meet this requirement.
What does "Manage" Involve?
Section 6.3.6.c.2 of the CPPM obligates ministries to provide timely and consistent monitoring of the contractor’s performance, and to ensure the assignment progresses as per the terms and conditions of the contract. This includes making sure the contractor does not begin the work until after the contract has been fully-signed and executed as stated in section 6.3.3.e.2 of the CPPM.
There are many different ways to monitor a contract – no one methodology works for all services. Examples include contractor reports, site visits, surveys, monitoring statistical information, etc. The monitoring processes selected for the contract should have been determined in the plan stage, included in the pre-award activities, and clearly described in the contract itself. These processes should be sufficient to detect issues with deliverables early, and simple enough to be managed within the available resource limitations.
Under the Canadian Free Trade Agreement (CFTA), provinces are required to calculate the number and aggregate value of procurements over the applicable thresholds and report on them annually. Section 6.3.6.c.4 of the CPPM obligates ministries to have processes in place to meet these reporting requirements. Ministries are generally required to submit these reports to the Office of the Comptroller General, Procurement Governance Office following the completion of the fiscal year.
Other trade agreements also include reporting requirements that may differ somewhat from the CFTA.
Refer to How to Buy Goods for information on receipt of goods.
Refer to Contract Payment for information on paying contractors.
WorkSafeBC requirements are addressed when first entering into a contract (see Contract Finalization for more information). During the term of the contract, ministries are responsible to ensure that, where applicable, the contractor’s standing with WSBC is maintained for the term of the contract by requesting a clearance letter from WSBC. Ministries can subscribe to the service for alerts (i.e. a Clearance Alert to be notified if the contractor lets their account lapse.
When a contract is first put in place, a Province of British Columbia Certificate of Insurance (FIN 173 MS Word) is provided by the contractor’s insurance agent or broker. If the insurance expires before the end of the contract term, another Certificate of Insurance – completed by the contractor’s insurance agent or broker - will be required. Check the expiry date of the insurance if the term of the contract is being extended.
Effective January 1, 2020, unless certain exceptions apply, vendors will be required to provide a Tax Verification Letter before contracts with the Province valued at equal to or above $100,000 (including all fees, expenses and options to extend or renew) can be entered into, extended or renewed. This requirement will ensure vendors entering into contracts with the Province are compliant with certain tax obligations.
When extending or renewing a contract, confirm that the vendor’s Tax Verification Letter is still valid. If it has expired, or if one is not in the contract file, request the vendor provide a new letter.
Some exceptions to this policy apply; refer to Tax Verification Letter for more information.
If a contract is to be modified, a modification agreement will need to be completed and signed by both parties. Many ministries have their own form of modification agreement (see the links to the right), or the corporate template in section 6.3.3.e.9 of the Core Policy and Procedures Manual can be used. Modification agreements can be used to make any type of change to a contract, but cannot be used to substantially change the nature and intent of the original contract or to substantially change the drafting and clauses of the original contract without first consulting with Legal Services. Changes to the nature and intent of the original contract may amount to a direct award or create other legal risk.
Contracts can be terminated, within the circumstances allowed in the contract. Most contracts include clauses that allow for termination due to a contractor’s deficiency or breach in deliverables, and most contracts also allow termination for convenience, meaning no reason need be given.
Terminating for Deficiency or Breach
The steps to take for deficiency or breach may vary, depending on the circumstances and the specific language used in the contract. Determination of deficiency or breach of contract is a contract interpretation issue, and should be referred to Legal Services. Do not terminate a contract for a deficiency or breach without first getting advice from the ministry’s Procurement Specialist and/or Legal Services.
Terminating for Convenience
If something has changed and a contract is no longer needed, some contracts allow the ministry to terminate for convenience, meaning that the termination is not related to any performance issue. Examples of this include the budget being cancelled, bringing the services in-house (i.e. to be delivered by ministry staff), or plans changing where the contracted services are no longer required. Where terminating a long-standing contract for convenience, prior to the expiry of the term, carefully document Province file detailing the reasons for the termination.
If a contract provides for termination for convenience, the process to be followed will be set out in the contract terms.
Pursuant to government policy, contracts must contain a clause that identifies how a dispute will be resolved, and any dispute arising out of a government contract must be resolved according to the terms of the contract (see CPPM section 6.3.6.f.1). If an issue cannot be resolved between the contractor and the ministry’s contract manager, contact the ministry’s Procurement Specialist who will contact Legal Services if it appears that the dispute resolution process will be needed to resolve an issue.
If the contract term has come to an end and all deliverables were completed to the satisfaction of the ministry, any holdbacks that applied to the contract can be paid to the contractor.
Note that not all ministries use holdbacks; refer to the ministry links to the right for more information.
For help finding a contract-related template or for contract-related questions:
Call the applicable SSBC Client Services Sector Contact.