Introduction

Government contracts — federal, provincial, and municipal — represent significant revenue opportunities for incorporated contractors and construction companies. They can also be more demanding to bid on than private sector work, for reasons that have nothing to do with the scope of the project.

Compliance documentation requirements for government procurements are specific and non-negotiable. A contractor whose bid is otherwise competitive can be disqualified for documentation that is missing, outdated, or incorrectly prepared. Understanding what is expected — and having it in order before the RFP closes — is a basic pre-requisite for government contract work.

Corporate Standing and Good Standing Certificates

A corporation bidding on a government contract must be in good standing with the relevant corporate registry. For Ontario corporations, this means being current with annual returns filed with the Ontario Business Registry. Federal corporations must be current with Corporations Canada.

A good standing certificate — confirming that the corporation exists and is in compliance with its filing obligations — is often required as part of a bid package. These certificates are available online through the relevant registry, typically for a nominal fee, and are time-stamped. Procurement offices will check the date.

CRA Compliance and Tax Clearances

Many government procurement processes require vendors to provide evidence of CRA compliance. This typically means demonstrating that the corporation is current with all tax filings — T2 corporate returns, HST/GST returns, and payroll remittances — and has no outstanding balances owing to the CRA.

Some procurement processes require a formal tax compliance certificate or consent to verify CRA standing. Others conduct a simpler self-certification. Either way, a corporation with unfiled returns, outstanding HST balances, or unresolved payroll remittance issues may be disqualified regardless of the quality of the bid.

Before submitting a government bid, the corporation's CRA accounts should be reviewed to confirm all returns are filed and all balances are either at nil or being paid through an agreed payment arrangement.

HST Registration

For government contracts, the issuing authority will issue payment against an invoice. Invoices for taxable services from an HST-registered supplier must include the supplier's HST registration number. An incorporated contractor that is not registered for HST — or that has allowed a registration to lapse — will not be able to invoice correctly for a taxable supply.

Most incorporated contractors operating above the $30,000 registration threshold will already be registered. If there is any question, registration status should be confirmed before bid submission.

WSIB Clearance

For construction and trades work in Ontario, a valid WSIB (Workplace Safety and Insurance Board) clearance certificate is typically required. A clearance certificate confirms that the corporation is registered with WSIB and that its account is in good standing — premiums are current and no compliance issues are outstanding.

Clearance certificates are obtained from WSIB directly and have an expiry date. Government procurements typically require a current certificate, issued within a specified period before the bid.

Independent operators and smaller subcontractors sometimes do not maintain WSIB registration. For government work, registration and a current clearance certificate are generally non-negotiable.

Corporate Insurance Requirements

Government contracts typically specify minimum insurance requirements — general liability, errors and omissions for professional services, or contractor's all-risk coverage for construction. The required minimums are stated in the RFP, and bids that do not include proof of compliant insurance coverage may be rejected.

Insurance coverage should be reviewed — and if necessary, adjusted — before submitting to a government procurement. Some coverage levels required by government clients exceed what a contractor maintains for private sector work.

Subcontractor Compliance

Where a contractor plans to use subcontractors to complete a government project, some procurement processes extend compliance requirements to those subcontractors. A contractor whose subs lack proper WSIB registration, insurance, or CRA standing can face complications in performing the contract even after winning it.

A Note on Federal Procurement

Federal government procurement through Public Services and Procurement Canada (PSPC) involves its own supplier database — the Supplier Registration Information (SRI) system, now incorporated into the Ariba-based federal portal. Suppliers must be registered in the system and may need to be pre-qualified before bidding on certain categories of federal work. Registration is separate from provincial or municipal compliance requirements.

When to Speak With a CPA

CRA compliance documentation is a core part of bid readiness for government work. If your corporation has any gaps — unfiled returns, outstanding balances, lapsed registrations — addressing them before bid submission is essential. A CPA can review the corporation's CRA standing and help resolve any outstanding issues.

Rotaru CPA works with contractors and construction businesses in Ontario to maintain the compliance standing needed for government and commercial work. Book a consultation to review your corporation's position.