Contract Amendment

A contract amendment is a formal change to an existing contract. It can change the scope of work, the price, the basis of payment, the duration or other contractual terms. In Canadian federal procurement, the amendment is documented, approved at the appropriate authority level, and awarded or executed as a change to the existing contract rather than as a new requirement. CanadaBuys describes the approval document used for this purpose.

Amendments apply to contracts, standing offers and supply arrangements. They are handled by contracting authorities such as Public Services and Procurement Canada (PSPC) and departmental contracting organizations. CanadaBuys administrative guidance also uses the broader term contract modification for changing an existing contract.

What a federal amendment request must contain

CanadaBuys provides a dedicated approval document for amending a contract, standing offer or supply arrangement. The request must cover the following:

• A description of the original goods or services.
• An explanation of the purpose of the amendment.
• The total cost of the amendment, including any increase or decrease, in Canadian dollars or the applicable foreign currency.
• A justification for any change to the basis of payment or other contract terms.

A Risk and Approval Assessment (RAA) must be completed before the amendment proceeds. It identifies the risks and determines the approval authority. The full requirements are set out in the CanadaBuys contract amendment guidance.

Who does what inside a department

The Department of National Defence (DND) audit framework divides the work between two roles. The technical authority is the client-side official who identifies and requests the required change. The contracting authority decides whether the request is a change to the contract or a new requirement, obtains contractor consent where required, and awards the amendment. The DND audit of contract amendments sets out these responsibilities.

PSPC administrative guidance covers how the change is written up. A modification should follow the original contract format and identify all modifications. Multiple changes should be consolidated where practical. It should receive the same distribution as the original contract, which preserves transparency and records. See the administrative guidance for implementing contract modifications.

Limits and approvals that apply to amendments

Several federal rules cap or condition amendments:

• Treasury Board approval: Contracting authorities must seek approval before entering into or amending a contract when the estimated value, including taxes, expected amendments and follow-on arrangements, exceeds the applicable limits. Approval is also required if deliverables or costs change after advance approval. See the Treasury Board contracting policy.
• ProServices directed contracts: A directed contract should not be amended above the $40,000 threshold. An exception requires departmental justification and may be escalated for procurement review. See the ProServices directed contracts guidance.
• Temporary help services: PSPC permits exceptional amendments extending a contract by up to 24 consecutive weeks beyond the normal 48-week limit. A copy goes to PSPC within two working days. See the temporary help services overview.
• Supply arrangements: Copies of all amendments must be placed on the procurement file, and an amendment's effective date must precede the contract expiry date. See the assessor guidance for supply arrangement requirements.

What a contract amendment means for a supplier

For a supplier, an amendment changes what you are obliged to deliver and be paid for, so treat it as a controlled document. Federal guidance points to these practices:

• Review and consent to proposed changes where the contracting authority requires contractor consent.
• Provide the supporting information needed to document the change, particularly where it affects cost, payment basis or contract terms.
• Perform the amended requirement only once the amendment has been properly approved and awarded.
• Check that price, schedule, deliverables and payment terms match the executed amendment.
• Raise extension requests early, because the effective date must precede the contract expiry date and approvals take time.

Your exact obligations depend on the contract, the amendment wording and the method of supply that applies.