The Canadian Construction Documents Committee (CCDC) develops, produces, and reviews standard construction contracts, forms and guides. The goal of these documents is to standardize a vetted set of documents for use across the Canadian construction industry and to clearly define the legal requirements in a construction project to legally protect all parties.
The CCDC committee was first established in 1974 and today has members from across the Canadian construction industry that represent all stakeholders involved in the bid, design and construction phase processes. There is also an attorney from the Construction Law Section of the Canadian Bar Association who sits on certain committees as an ex-officio member.
What is CCDC 2 2020?
On December 14, 2020, the CCDC published a new version of the CCDC 2 ‘Stipulated Price Contract’. The Stipulated Price Contract is “the industry standard prime contract between Owner and prime Contractor. This contract establishes a single, pre-determined fixed price, or lump sum, for the project.” This contract is now referred to as CCDC 2 2020, phasing out the CCDC 2 2008. Both revisions of these contracts are now accepted between contractual parties. As a reminder, note that original signed copies of contracts with an original fixed copyright seal (obtained from your local construction association office) shall be provided to all parties in a contractual relationship. The CCDC 2 – 2008 copyright seals will continue to be sold until the end of 2021. At the end of 2021, 2008 copyright seals will be exchanged for their 2020 equivalents through local construction association offices.
What Are The Primary Differences?
It is important for all parties in a construction contract to know the differences between these two versions of the contracts. The changes primary between the two include:
- The building owner may take early occupancy on part or all of the building before Ready-for-Takeover (RFT)*;
- Construction safety is now the responsibility of both signatories based on applicable contract documents and provincial/territorial legislation;
- General liability insurance, automobile liability insurance, manned aircraft and watercraft liability insurance has increased from $5 million to $10 million; and
- A new requirement for contractors pollution liability insurance with limits of not less than $5 million per occurrence.
* RFT is a new term that happens after the substantial performance is complete but before all the work is complete and is agreed-upon by the Contractor.
Pinchin recommends additional considerations for clients, to have legal representation review the updated CCDC 2 (2020) contracts and draft appropriate Supplementary Conditions. The newer version includes revisions/updates to the following: Prompt Payment, Adjudication, Ready-For-Takeover (RFT), Early Occupancy, Construction Safety, Insurance, Indemnification, Change Directive as well as providing editable division 01 Master Specification templates.
The CCDC periodically releases new and updated construction contracts, forms and guides to reflect the changing landscape in the Canadian construction industry. It is important for Consultants to acquire those documents and ensure that we are providing the most up to date documents to our clients to ensure we clearly define the risk that each party needs to undertake in a construction contractual relationship.
If you have any questions about the new CCDC 2 2020 Contract, please feel free to reach out to your local Pinchin office and speak to one of our Building Science & Sustainability experts, we’d be happy to help.