what is a ccdc 2 contract

CCDC 2 – 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.

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What is a CCDC 2 – stipulated price contract?

What is the document? CCDC 2 – 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.

Is there a free version of CCDC 2?

This document is free. What is the document? CCDC 2 – 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.

What is a CCDC document?

CCDC Documents are relied on as familiar industry standards for their fairness and balance for all parties involved in a construction project. What is the document? CCDC 2 – Stipulated Price Contract is the industry standard prime contract between Owner and prime Contractor.

Which contracts will CCDC update after the CCDC 2?

As CCDC has done in the past, after amending and updating the CCDC 2, it will be updating the other contracts in its suite of contracts, including CCDC 3 – Cost-Plus Contract, CCDC 5B – Construction Management Contract – For Services and Construction, CCDC 14 – Design-Build Stipulated Price Contract, and other commonly used contracts.

What does Ccdc stand for in construction?

Canadian Construction Documents CommitteeThe Canadian Construction Documents Committee (CCDC) develops, produces, and reviews standard construction contracts, forms and guides. It is a national joint committee, formed in 1974, and includes representation from across the Canadian construction industry.

What is a CCDC document?

Founded in 1974, the Canadian Construction Documents Committee (CCDC), is a national joint committee responsible for the development, production and review of standard Canadian construction contracts, forms and guides. It is composed of volunteers representing: Public sector owners. Private sector owners.

What are the advantages of using CCDC documents?

Benefits of CCDC documents They provide cost savings through balanced standard contract forms, and help to ensure standardization for bidding and contracting procedures. Each year, more than 50,000 copies of CCDC documents are sold.

What is the latest CCDC 2?

2 has been revised in the CCDC 2 (2020) to preclude claims for extensions for delays caused by a stop work order issued by a court or public authority, UNLESS the delay results in the failure of the Contractor to obtain RFT by the date stipulated in the Contract.

What are the two types of CCDC contracts?

CCDC 31 – 2020 Service Contract Between Owner and Consultant CCDC 31 – Service Contract Between Owner and Consultant is a standard service contract for use between Owner and consulting engineer.

Who has control over the contracts CCDC 2?

What is the document? CCDC 2 – 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.

Can CCDC be signed electronically?

The use of an electronically generated CCDC Document not containing a Copyright Seal constitutes an infringement of copyright. An electronic document should be signed only if the document's front page has a Copyright Seal. All CCDC documents and authorization seals are available from your local document outlet.

What is stipulated price?

A stipulated price contract involves setting a fixed price for the execution of a construction project based on a client's plans and specs. The amount is established for the execution of all the steps of the project.

What is the difference between CCDC 5A and CCDC 5B?

The most important distinction is with regard to who contracts with the Trade Contractors. Under CCDC 5A it is the Owner and under CCDC 5B it is the Construction Manager. The Owner must decide at the outset on which form of Construction Management contract to use.

What is the difference between cost plus and time and material?

The main difference is the way profit is handled. With a T&M contract, fees are marked up, so the contractor makes a profit. With a cost-plus agreement, a contractor bills for expenses at cost plus an additional, separate fee that represents its profit.

What is the meaning of lump sum contract?

A lump sum contract in construction is one type of construction contract, sometimes referred to as stipulated-sum, where a single price is quoted for an entire project based on plans and specifications and covers the entire project and the owner knows exactly how much the work will cost in advance.

Can you still use CCDC 2008?

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.

Can CCDC be signed electronically?

The use of an electronically generated CCDC Document not containing a Copyright Seal constitutes an infringement of copyright. An electronic document should be signed only if the document's front page has a Copyright Seal. All CCDC documents and authorization seals are available from your local document outlet.

What is a CCDC 14 contract?

CCDC 14 is a standard prime contract between the Owner and the Design-Builder where the Design-Builder provides the Design Services and performs the Work under one agreement, for a single, pre-determined stipulated or fixed price.

What is the difference between CCDC 5A and CCDC 5B?

The most important distinction is with regard to who contracts with the Trade Contractors. Under CCDC 5A it is the Owner and under CCDC 5B it is the Construction Manager. The Owner must decide at the outset on which form of Construction Management contract to use.

What is contract form in construction?

A construction contract agreement is a document that sets the scope and terms of work for a construction project. It is an agreement between the contractor doing the construction and the person or company who hires them to do the work.

What is CCDC 2?

The new CCDC 2 updates the standard form contract to catch up with recent prompt payment and adjudication changes in Ontario (and soon other provinces). It also introduces a number of other changes to both reflect more recent trends in contracting and to otherwise streamline the contract.

Who must notify the Contractor of a rejection of any part of the application for payment?

To conform with Payment Legislation, it is now the Owner (rather than the Consultant) who must notify the Contractor of a rejection of any part of the application for payment by issuing a written notice of non-payment to the Contractor with the reasons for the revisions or rejection of an application for payment in compliance with Payment Legislation. [GC 5.3.1.1]

What is GC 6.5.2?

GC 6.5.1 (Owner-caused delays) and GC 6.5.3 (delays outside of Contractor's control) are unchanged.

What does a contractor have to provide for workers compensation?

The Contractor must now provide evidence of compliance with workers' compensation legislation with all applications for payments, including progress payments, and holdbacks, not only with applications for final payment and on request. [GC 5.2.7; GC 10.4.1]

What is legal cost?

Legal costs, in relation to the performance of the Work, provided they are not relating to a dispute between the Owner and the Contractor, the result of the negligent acts or omissions of the Contractor, or the result of a breach of contract by the Contractor; Cost of auditing when requested by the Owner; and.

When is a project ready for takeover?

Where the Owner takes occupancy of all or part of the Work, the part of the Project that is occupied will be deemed to have achieved Ready-for-Takeover as from the date of occupation. As of that date, the responsibility for the care of the part of the Work that is occupied will be passed on to the Owner and the warranty period for the occupied parts will start. In the event the Owner occupies the entirety of the Work prior to it being Ready-for-Takeover, the Contractor is not relieved from any responsibility from completing the Work in a timely manner.

Is contract security deleted?

Contract Security: The requirement for the contractor to provide the contract security in the Contract Documents has been entirely deleted. [old GC 11.2]

What is CCDC 2?

CCDC 2 – 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.

What is a CCDC 17 contract?

CCDC 17 – 2010 Stipulated Price Contract for Trade Contractors on Construction Management Projects is a standard contract form between Owner and Trade Contractor to perform the Work for a single, pre-determined fixed price, regardless of the Trade Contractor’s actual costs. It is specifically for use where the project is performed under the CCDC 5A Construction Management method of contracting.

What is a construction contract?

The contract outlines the high-level administrative requirements and procedures needed for construction projects, including the role and authority of the consultant, procedures for changes in the work, work by other contractors, insurance requirements, prerequisites for Ready-for-Takeover, dispute resolution procedures, early occupancy by the Owner, and more.

What is a master agreement?

The Master Agreement is a contract form between Owner and Contractor that is applicable for a defined period of time and is intended to establish contractual terms and conditions (excluding scope, time and cost) for multiple projects during that time period.

What is a CCDC 2 contract?

The CCDC 2 Stipulated Price Contract is one of the most common construction contracts used throughout Canada. It provides a well-known, widely-recognized framework for owners, contractors, financers and consultants, containing contract clauses that have been the subject of numerous court and arbitral decisions which provide guidance for interpretation.

When will the CCDC 2 be released?

In December 2020, the Canadian Construction Documents Committee (CCDC) released the much anticipated update, CCDC 2 – 2020. Although the new CCDC 2 – 2020 maintains the same framework of project delivery as the previous version (CCDC 2 – 2008) and many of the same General Conditions, it does contain changes that will impact projects:

What is the new CCDC 2 – 2020?

The CCDC 2 – 2020 introduces a new Part 12 including a new milestone entitled Ready-for-Takeover. While an Owner’s takeover of work milestone is new to the CCDC 2 – 2020, it is not a new concept in the industry – other forms of contract (for example FIDIC style contracts) use a similar “taking-over” milestone.

What is required for CCDC 2 2020?

CCDC 2 – 2020 requires the Contractor to submit applications for payment monthly to the Consultant and Owner “simultaneously.” It also provides that each application for payment (after the first payment) shall include evidence of compliance with workers’ compensation legislation and a CCDC 9A Statutory Declaration by the Contractor. CCDC 2 – 2008 only required a statutory declaration when applying for payout of statutory holdback.

How many days does a CCDC 2 2020 consultant have to respond?

In the same way that CCDC 2 – 2008 requires the Contractor to apply to the Consultant for Substantial Performance, Part 12 of CCDC 2 – 2020 requires the Contractor to apply in advance for Ready-for-Takeover and the Consultant now has 10 calendar days to respond.

How many days does a CCDC 2 – 2008 application take?

The 20 calendar days for payment by the Owner in CCDC 2 – 2008 has been changed to 28 calendar days after the receipt by the Owner and Consultant of the application for payment, subject to compliance with Payment Legislation.

How long does a contractor have to pay a holdback?

The statutory holdback must be paid to the Contractor no later than 10 working days following the expiration of the holdback period.

Summary of Changes to the CCDC 2 - 2020 Stipulated Price Contract

Ready-for-Takeover: The CCDC 2 – 2020 Stipulated Price Contract introduces the concept of “Ready-for-Takeover” as a milestone for completion of the work. Previously, completion of the work was set as achievement of “substantial performance” pursuant to the applicable lien legislation.

Payment Terms and Release of Holdback

As noted above, the CCDC 2 – 2020 Stipulated Price Contract has modified payment terms to reflect prompt payment legislation that has been introduced (or is being contemplated) in many Canadian provinces. Changes made to reflect these changes to the prompt payment legislation include the following:

Change Directives

The CCDC 2 – 2020 Stipulated Price Contract includes updates to the costs to be considered in connection with valuation of a change directive. Now, costs for a change directive may only be charged if they contribute directly to the implementation of the change directive. These costs include:

Cash Allowances

The CCDC 2 – 2020 Stipulated Price Contract permits the reallocation of unexpended cash allowances to cover any shortfalls that may occur in connection with a budget item, meaning that an increase in the Contract Price will only occur when the cost of an increase exceeds the total amount of all cash allowances provided for in the Contract.

Delays

The CCDC 2 – 2020 Stipulated Price Contract has amended the provisions regarding delays set out at GC 6.5 [DELAYS].

Consequential Damages

The indemnification provisions in the CCDC 2 – 2020 Stipulated Price Contract at GC 13.1 [INDEMNIFICATION] have been revised to expressly exclude any liability for “indirect”, “consequential”, “punitive” or “exemplary” damages. These terms are not defined.

Safety

Unlike the previous version, the CCDC 2 – 2020 Stipulated Price Contract requires both Owner and Contractor to comply with applicable health and safety legislation, but does not specifically assign the “Prime Contractor” or “Constructor” responsible for health and safety at the Project site.

How to schedule a construction contract?

3.4.1 The Contractor shall: .1 prepare and submit to the Owner and the Consultant prior to the first application for payment, a construction schedule that indicates the timing of the major activities of the Work and provides sufficient detail of the critical events and their inter-relationship to demonstrate the Work will be performed in conformity with the Contract Time; .2 monitor the progress of the Work relative to the construction schedule and update the schedule on a monthly basis or as stipulated by the Contract Documents; and .3 advise the Consultant of any revisions required to the schedule as the result of extensions of the Contract Time as provided in Part 6 of the General Conditions – CHANGES IN THE WORK.

Who reserves the right to award separate contracts in connection with other parts of the Project to Other Contractors?

3.2.1 The Owner reserves the right to award separate contracts in connection with other parts of the Project to Other Contractors and to perform work with own forces.

What is a specification in a contract?

The Specifications are that portion of the Contract Documents, wherever located and whenever issued, consisting of the written requirements and standards for Products, systems, workmanship, quality, and the services necessary for the performance of the Work.

What is a drawing in a contract?

The Drawings are the graphic and pictorial portions of the Contract Documents, wherever located and whenever issued, showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, and diagrams.

What is contract in law?

The Contract is the undertaking by the parties to perform their respective duties, responsibilities and obligations as prescribed in the Contract Documents and represents the entire agreement between the parties.

What is a consultant in a contract?

The Consultant is the person or entity engaged by the Owner and identified as such in the Agreement. The Consultant is the Architect, the Engineer or entity licensed to practise in the province or territory of the Place of the Work.

What is construction equipment?

Construction Equipment means all machinery and equipment, either operated or not operated, that is required for preparing, fabricating, conveying, erecting, or otherwise performing the Work but is not incorporated into the Work.

What is a CCDC 2 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.

Why is CCDC important?

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.

When was the CCDC committee established?

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 the Canadian Construction Documents Committee?

The Canadian Construction Documents Committee (CCDC) develop s, 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.

What is a CCDC-2?

The CCDC-2 is the standard construction contract commonly used across Canada between a building owner and the prime contractor when the work is done for a fixed price or lump sum. The CCDC-2 document is updated periodically by CCDC to address specific concerns in the construction industry and to reflect trends (e. g., dispute resolution) that have arisen since the previous edition. This article summarizes some significant changes in the 2008 CCDC-2 that have an impact on engineers in their role as consultants.

What is the limit of liability in CCDC-2 2008?

The limitation of liability in CCDC-2 2008 on the reciprocal indemnities of the owner and contractor is the greater of the contract price or $2 million, but in no event is to exceed $20 million. The indemnity for third party claims is unlimited for direct loss for personal injury or damage to property.

What is GC 3.10.12?

Shop drawings. In the new GC 3.10.9, the consultant must indicate, in writing, the acceptance or rejection of any deviations in the shop drawings. Also, in GC 3.10.10, the contractor is now explicitly responsible for errors or omissions in the shop drawings, even if the consultant accepts a deviation. Finally, in GC 3.10.12, the consultant is required to review shop drawings with “reasonable promptness so as to cause no delay in the performance of the Work.”

How long does it take to get a certificate of payment from a contractor?

Payment. In GC 5.3.1, the consultant must still issue a certificate for payment to the owner within 10 calendar days after the receipt of an application for payment from the contractor in the amount applied for, or in some other amount as determined by the consultant. However, the consultant must now also provide a copy of that certificate to the contractor.

What is GC 9.2.6?

In the new GC 9.2.6, the consultant is no longer required to provide an initial finding on disputes relating to the steps taken by the contractor to deal with toxic or hazardous substances. If the owner and contractor do not agree on the existence or significance of the hazardous substance, or if the substance was brought to the place of the work by the contractor or anyone for whom the contractor is responsible, then the owner is required to retain and pay for an independent qualified expert to make a determination.

What is administration of construction contract?

Previously, the consultant provided administration of the contract in the manner set out in the contract documents until the final certificate of payment was issued, and, with the owner’s agreement, until the correction of any defects was completed.

What is the obligation of a contractor to report mold?

The contractor must report any presence of mould at the place of the work and take steps to avoid sickness, injury or damage to people and property. The owner must retain an expert if it does not agree with the contractor regarding the existence, significance or cause of the mould or steps to be taken.

Payment Terms and The Release of Holdback

Adjudication

Ready-For-Takeover and Early Occupancy

Construction Safety

• The CCDC 2 (2020) now recognizes that the Contractor will be responsible for overall health and safety on the Project, even when the Owner brings on other contractors by deleting old GC 3.2.2. However, CCDC 2 (2020) also now requires both parties to comply with health and safety regulations. Thus, the Owner is now also responsible for ensuring comp...

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valuation of Change Directives

Cash Allowances

Delays

Indemnification and Waiver of Claims

General Deletions

What's Next?