Amending contracts

Amending a contract means making an agreed addition, deletion, correction or other modification to a contract that already exists. The amendment is normally recorded in writing and changes the original contractual terms. It can address time, specifications, price, claims, disputes or administrative details. The Office of the Procurement Ombudsman describes contract amendments in this way in its procurement practice review.

The term is used in both Canadian federal procurement administration and NATO procurement. In Canada it is tied to contracting authority, Treasury Board approvals, financial delegation and the use of acquisition instruments such as standing offers and supply arrangements. For suppliers, an amendment is the formal way a signed contract changes after award.

What a contract amendment can change

NATO's Procurement Manual defines a contract amendment or modification as a written record of changes to the original terms and conditions. It lists possible subjects including completion dates, specifications, price, claims and disputes. It also covers administrative changes such as a change of name, legal status or address.

• Completion dates and delivery schedules
• Specifications
• Price
• Claims and disputes
• Administrative details such as name, legal status or address

How amendments are documented

The NATO manual requires an amendment to be in writing, approved at the appropriate level, signed by authorized representatives and recorded in the contract file. Only procurement staff may officially change a contract. The original contract document is not corrected or deleted. The change is made through a separate written amendment.

Canadian records follow the same logic. Library and Archives Canada's retention guidance for acquisition services identifies the Formal Contract Amendment and the PWGSC/TPSGC 9038 Design Change/Deviation form as contract-administration records.

Treasury Board approval requirements

Under the Treasury Board's procurement requirements, a contracting authority must seek approval before entering into or amending a contract when the estimated value exceeds the applicable approval limit. That estimated value includes taxes, expected amendments and follow-on arrangements. The rules are set out in the Treasury Board procurement instrument and the 2025 Treasury Board publication.

• Approval is required before amending a contract if the procurement deliverables or costs change after advance approval.
• The same requirement applies to contracts issued against a standing offer or supply arrangement when the estimated value exceeds the limit in the Treasury Board-approved instrument.
• Approval from the financial-delegation holder is required before extending a contract, or amending it where the amendment has a financial impact during the procurement life cycle.

How departments process amendments

The Department of National Defence audit of contract amendments describes a defined process. The technical authority identifies and requests the change. The contracting authority decides whether the request is a change or a new requirement, prepares the amendment documents and obtains approvals. It also obtains the contractor's consent to the change where required.

Limits also apply by method of supply. PSPC guidance on ProServices directed contracts says departments should not amend directed or competitive contracts above the limits set by the method of supply. A directed contract should not be amended above the $40,000 threshold.

What amending contracts means for suppliers

A supplier cannot rely on informal instructions to change scope, price or schedule. A change takes effect only through a written amendment issued by the contracting authority, and in many cases it needs the contractor's consent. Suppliers should expect internal approvals to precede the amendment, particularly where expected amendments push the estimated value over an approval limit.

Bid teams should price and plan with this in mind. A change in deliverables or costs after approval can trigger a new approval before the contract is amended. Keep copies of every signed amendment, since each one is part of the contract record.