A contract for services is a document in which a provider of services agrees to provide a service to a client in exchange for a payment. This type of arrangement is governed by the University of Toronto’s Procurement Policy.
- Step 1: Approvals
Confirm that the appropriate divisional approvals have been obtained. If you are unsure who within the division has such authority to approve a service contract for the purchase of services, contact your Dean’s Office or CAO. - Step 2: Divisional HR assessment if engaging an Individual to perform services
Contact your Divisional HR office to determine if the specific arrangement proposed with the service provider supports categorizing them as an independent contractor:- An accurate designation of the relationship is important because misclassifying a service provider as an independent contractor instead of an employee can result in significant legal and financial liability for the University;
- Determining whether the relationship between the University and the individual is that of an employee or an independent contract depends on various factors and your Divisional HR office is your key partner in carrying out a nuanced yet technical assessment;
- Ensure the above before proceeding any further in the purchasing process, including engaging Office of University Counsel directly for legal support.
- If engaging a third party corporate entity (ie: the third party has a corporate name that ends in Inc., Ltd., LLC, etc.), proceed to Step 3.
- Step 3: Obtain quotes
The Procurement Policy must be followed with respect to obtaining quotes:- Beginning April 1, 2024, the University will be required to comply with the Building Ontario Businesses Initiative Act (“BOBIA”) providing preference to Ontario Businesses for certain procurements.
- All purchases under $100,000 will require departments to collect additional information from vendors at the point of obtaining quotes and to maintain records of BOBIA compliance.
- Purchases from Non-Ontario Businesses will be permitted with appropriate justification, new evaluation processes, documentation requirements, and reporting obligations.
- For more information about BOBIA compliance, please consult with your divisional business officer or CAO.
- Resources
Total Pre-Tax Procurement Value | Means of Procurement |
|---|---|
| up to $9,999.99 | No quotes required |
| $10,000 – $49,999.99 | ✔ 2 written quotes required |
| $50,000 – $99,999.99 | ✔ 3 written quotes required |
| $100,000 + | ✔ RFP: to be compliant with internal and external regulatory frameworks, purchases in this threshold must be publicly tendered in a competitive bid process, and referred to Procurement Services |
| Consulting Services | All consulting services must be competitively sourced regardless of dollar value |
- Step 4: Legal review
Contact legal@utoronto.ca to obtain an appropriate template for the purchase of services or to review a template provided by the service provider.