Additional Construction Services

Additional construction services are work items that weren't part of the original contract but become necessary after construction has started. These typically arise from unforeseeable circumstances—hidden structural issues, unexpected site conditions, or design conflicts that only reveal themselves during execution. Here's the thing: you can't just hand out construction work whenever it's convenient. The rules are specific, and the limits are firm.

How It Works

According to the Office of the Procurement Ombud's guidance, you can award additional construction services to your existing contractor when the work falls within the objectives of your original tender documentation but couldn't have been anticipated. The separation of this new work from the initial contract must be difficult for technical or economic reasons—difficult enough that it would cause significant inconvenience to your entity.

There's a hard cap: the total value of additional services can't exceed 50 percent of the main contract amount. This limitation exists under both domestic procurement rules and trade agreements like the Canadian Free Trade Agreement. Your original contractor gets the work because bringing in someone new mid-project would disrupt timelines, create coordination nightmares, or simply cost more than it's worth.

In practice, PSPC and other departments use this provision when they discover, say, asbestos during a renovation that wasn't detected in the initial assessment, or when existing building systems don't match the archived drawings. The Government Contracts Regulations define construction contracts broadly—they include construction, repair, renovation, restoration, prefabricated structures, dredging, and demolition. Contract amendments must still follow standards of ethical conduct, fairness, openness, and transparency, as outlined in the Supply Manual.

Key Considerations

• The 50 percent ceiling is cumulative: If you've already amended once for 30 percent more work, you only have 20 percent of headroom left. Track this carefully or you'll find yourself unable to address legitimate issues without retendering.

• "Unforeseeable" doesn't mean "unplanned": Poor scoping or inadequate site investigations don't qualify. The circumstances must genuinely be unpredictable, not the result of insufficient due diligence on your part.

• Documentation matters more than usual: You need to demonstrate why separation would be technically or economically difficult. Vague justifications won't survive scrutiny from the Canadian International Trade Tribunal if a supplier challenges the amendment.

• PSPC's non-competitive construction limit is $1,250,000: If your additional services push beyond departmental contracting authority, you'll need Treasury Board approval regardless of whether the work qualifies as a legitimate amendment.

Related Terms

Consulting Services Regarding Matters of a Confidential Nature, Limited Tendering, Contract Amendment

Sources

• Construction Contract Amendments - Procurement Practice Reviews, Office of the Procurement Ombud

• Government of Canada Supply Manual

• Chapter Five - Government Procurement, Canadian Free Trade Agreement

When construction throws you a curveball, additional services provisions give you flexibility. Just remember: flexibility isn't the same as carte blanche.