Canadian Procurement Law – The Basics

Copyright 2011, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Procurement, September 2011

Introduction

The law in Canada with respect to competitive procurement/tendering has been in development since 1981. What is somewhat unique to Canadian law is that competitive procurement processes create two contracts: (i) the bidding contract which sets out the "rules" that apply up until the completion of the competitive procurement process; and (ii) the substantive contract entered into between the procuring authority and the successful bidder.

Layered on top of this legal framework is a collection of trade agreements and government guidelines that regulates procurement practices of government and quasi-government entities. Finally, there are also recent indications that judicial review of government procurement practices will play an increasingly significant role in the resolution of procurement disputes.