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Fee For Service Contracts

Fee for service contract: an agreement with UPEI where a business, individual or agency agrees to provide a service in return for monetary compensation. The contract describes in detail the nature, duration, and description of the services provided as well as compensation for the services.

Note: Before preparing a Fee for Service Contract please ensure that the contractor meets Canada Revenue Agency guidelines as an independent contractor versus an employee. For more information refer to the following CRA information pamphlet - RC4110

1. Is a contract required?

All Fee for Service engagements require the preparation of a contract with the exception of Low Value-Minimal Risk Engagements.

Low Value-Minimal Risk Engagement - Services of a pre-tax value of less than $2,500 (Low Value) and carrying minimal risk may not require a Fee-for-Service Contract (Minimal Risk Engagement). In order to be considered a Minimal Risk Engagement NONE of the following conditions can exist:

  1. Minors are involved
  2. Travel of University employees or students
  3. Physical activity is involved
  4. Alcohol is involved
  5. The person providing the service is a UPEI employee (please contact Human Resources
  6. The terms and conditions of the engagement cannot be briefly summarized on a purchase order.

If any of the above conditions exist, a contract is required. The Comptroller in his/her discretion may require a contract for a Low Value-Minimal Risk Engagements. Any questions regarding whether a service is considered a Minimal Risk Engagement should be directed to the Risk Management Officer.

No Contract Required

Please prepare an External Purchase Requisition and include the following information and forward it to Procurement Services.    

  1. Legal Supplier Name (This is the name that will appear on contractors invoice)
  2. Brief description of services to be provided
  3. SIN # for unincorporated business
  4. HST Registration Number or Small Supplier HST Declaration Form  
  5. Mailing address
  6. (if applicable) Non‐resident information (date of birth, Social Security Number or equivalent, number of days to be worked in Canada)

2. Procurement Requirements

Prior to preparing the contract, please ensure that the procurement of the service complies with the University’s Procurement Policy.

Procurement Policy Requirements:

Purchase Value Requirement Documentation Required
Under $10,000 Do not require competitive quotes, but departments are encouraged to consider more than one supplier of the product, and obtain a documented quotation from the vendor which outlines the terms and conditions, purchase price, deliverables, etc. - External Purchase Requisition
$10,000 - $50,000 A minimum of three documented competitive quotations are required.

- External Purchase Requisition

- Three competitive quotes

$50,000 + Are to be made following a Public Tender, Public Vendor Qualification or a Request for Proposals process. Contact Procurement Services

The documentation must be attached to the completed contract package. Contracts that do not meet the Procurement Policy will be returned to the originator unsigned.

Sole Source Justification:

The Procurement Policy allows for an exception to the requirement for quotations or tender where sole sourcing of the service is justified based upon the specialized nature of the particular service or other extenuating circumstances. Sole Source Justifications are not granted lightly. A letter must be written to the Manager of Procurement Services requesting consideration for sole sourcing. The Manager of Procurement Services at his/her discretion may require additional approvals.

3. Supplier Instructions

When preparing a contract, you will work with the supplier to gather the required information to complete the contract. The below sheet should be shared with the supplier and used as a guide to ensure all of the relevant information is gathered to complete the contract and to allow for appropriate processing of their invoices. 

Send service supplier the Service Supplier Information Sheet.

4. Drafting the Contract

Fee for Service Templates

The following are UPEI templates to be used for Fee for Service Contracts. These templates provide guidance and indicators of required contract clauses. These templates can be modified and customized to match each particular circumstance.

  • Standard Contract - These are the default templates and should be used in the majority of service engagements.
  • Minimal Risk Contract - This template can be used if ALL following conditions exist:
    1. the contract has a pre-tax value of $2,500 or greater; AND
    2. the contractor is a sole proprietor (individual); AND
    3. the contract meets the Minimal Risk Engagement guidelines as set out above in section #1.
  • Complex Contract - Complex service engagements that require a more comprehensive contract.

Additional contact information/ resources:

5. Contract Control Form

For each new contract, please complete a cover sheet which is known as a Contract Approval Control Form:

  • Identify the contract title
  • Identify parties to the contract
  • Indicate if new account is required
  • Indicate start and end date of the contract
  • Must be signed by (1) Originator; (2) Chair/Department Head; (3) Dean/Director; and (4) VP/President

6. Forward Contract package to the Comptroller’s Office

Contract must be reviewed by the Comptroller’s Office prior to signature by an official signatory of the University. The Contract package must include the following documents, unless otherwise stated:

  • Contract Approval Control Form
  • Two copies of the completed Contract
  • Certificate of Insurance (if applicable)
  • Procurement Policy Requirements:
    1. Three Competitive Quotes (Contracts valued between $10,000-$50,000)
    2. Public Tender, Public Vendor Qualification or a Request for Proposals (Contracts greater than $50,000)
    3. Sole Source Request Letter (if applicable)

The finalized contract package is to forwarded to the Comptroller’s Office and must contain the following documentation (as applicable):

Value Documentation
Under $10,000

1) Contract Approval Control Form
2) Two original copies of the contract
3) Certificate of Insurance (exception - Minimal Risk Contracts)


1) Contract Approval Control Form
2) Two original copies of the contract
3) Three (3) Competitive Quotations
4) Certificate of Insurance (exception - Minimal Risk Contracts)


1) Contract Approval Control Form
2) Two original copies of the contract
3) RPF Process – Contact Procurement Services 
4) Certificate of Insurance

Sole Source

1) Contract Approval Control Form
2) Two original copies of the contract
3) Letter to Manager of Procurement Services (Sole Source Justification)
4) Certificate of Insurance (exception - Minimal Risk Contracts)

7. Purchase Requisition

Please use MyUPEI to generate a Purchase Requisition upon receipt of fully signed contract. Please reference the contract number located in the top right hand corner of the Control Approval Control Form when completing Purchase Requisition.

8. Additional Resources

For more information on Fee for Service Contracts, read the Fee for Service Contracts FAQ.

Contact UPEI