Before engaging an individual to provide services to the University, it is important to identify if the services are to be provided by an employee of the University, or by an external third party, i.e. an independent contractor. Engagement processes, tax treatments and payment processes will vary depending on how the service provider is classified. If the service should be provided by an employee, contact your local HR representative for guidance. For additional information, see Employee versus Independent Contractor.
Consultant or Contractor
When an individual engaged to provide services is not an employee, this individual is typically referred to as an independent contractor. This is further defined depending on the nature of the work that is required: consultant or contractor. Each has its own engagement requirement under the University’s Procurement Policy.
The Broader Public Sector (BPS) Expenses Directive must be incorporated into the acquisition of consulting services such that, under no circumstances can food, beverage, gratuities, laundry, dry cleaning and personal telephone calls be itemized and paid as part of any contract between the University and a consultant or separately reimbursed. Allowable business related travel and accommodation expenses can be claimed and reimbursed only when pre-approved by the University and the contract specifically provides for it.
If engaging services from a Consultant, it is important to note that consulting services must be competitively sourced regardless of dollar value: a minimum of 3 supplier quotations are required for any engagement under $100,000. Engagements of greater value must be sourced using an Open Competitive procurement process. If neither is possible, a Procurement Policy Exemptions Justification (PPEJ) form is required, a solid business case must be included, and authorization must be obtained from the President of the University.
Person or entity under an agreement (not an employment agreement) to provide expert strategic advice and related services for consideration and decision-making by the University.
- Hiring a expert in the field of natural heritage planning to prepare a natural heritage impact study
- Engaging an IT expert to provide advice regarding a new IT strategy and assistance in selecting a supplier for a new system
- Hiring a consultant to provide strategic intelligence and advice to increase the University’s knowledge of federal government priorities and approach to post-secondary education
- Under $100,000 requires 3 quotes
- Greater than $100,000 contact Procurement Services for Open Competitive Procurement (e.g. RFP)
- Procurement Policy Exemptions require authorization from the President of the University
- The University requires a signed “fixed fee” contract/agreement with the Consultant specifying the terms and conditions including desired outcomes
- A Purchase Order is recommended unless the total contract value is less than $10,000
- The University must pay HST on amounts paid (whether Consultant is an individual or a legal entity) unless there is a Small Supplier Certification on file for the individual
Person or entity retained under fee-for-service arrangement to perform specific tasks at the direction of the University for a limited period of time.
- Contracting with a subject matter expert to perform a department or accreditation review
- Engaging an external investigator to conduct a fact-finding investigation of a workplace incident
- Engaging an external facilitator for a team building session would be categorized as a service
- Hiring a computer programmer and graphic artist to create a website with research funding
- Purchasing process depends on dollar value of purchase. For more information see Purchasing Goods or Services.
- The University requires a signed contract/agreement with the individual or the legal entity specifying the terms and conditions including desired outcome
- A Purchase Order is recommended unless total contract value is less than $10,000
- The University must pay HST on amounts paid (whether Contractor is an individual or a legal entity) unless there is a Small Supplier Certification on file for the individual