Thursday, July 18, 2024

Industry Advisory – Standard Document Changes

Revisions to ACA Forms A & B to Align with CCDC 2 – 2020 Stipulated Price Contract

CCDC 2, stipulated sum contract between owner and general contractor has been revised and is available for use December 2020.

A review of ACA Form A (agreement between general contractor and subcontractor) and ACA Form B (agreement between subcontractor and subsubcontractor) was undertaken to ensure alignment with CCDC 2 – 2020. The review concluded that while CCDC 2 – 2020 introduces the Ready-for-Takeover provision, rather than introducing these provisions in Forms A and B, subcontractors need to comply with flow-down provisions from the Prime CCDC2 contract (including Supplementary Conditions). Consequently, ACA Forms A and B have been only slightly revised and the revised versions align with both CCDC2-2008 and CCDC2-2020.

These revisions are labelled as: ACA Form A (2020), ACA Form B (2020), and ACA SC CCDC2 – 2020.

Changes include:

ACA Form A Agreement: only change is to date of form to 2020

ACA Form A Subcontract Conditions:

15: Deletion of sentence: “Any demonstrable costs associated with a change of the Surety company at the instruction of the Contractor shall be borne by the Contractor”. (this change is unrelated to CCDC2 – 2020 but reflects current industry practice.

16.1 revises the following:

in compliance with CCDC 41 – CCDC INSURANCE REQUIREMENTS (read “Contractor” as “Subcontractor” and “Owner” as “Contractor”) or, if the Contractor provides greater or lesser limits and coverages under the Prime Contract than specified in CCDC 41, not less than such greater or lesser limits and coverages

ACA Form B Agreement: only change is to date of form to 2020

ACA Form B Subsubcontract Conditions:

15 and 16 as per Form A

Subcontractors should familiarize themselves with the Ready-For-Takeover provisions added to CCDC2 -2020. Eight prerequisites are needed to attain ready For Takeover:

  • Consultant verification of Substantial performance
    • Evidence of compliance with requirements for occupancy or occupancy permit
    • Final cleaning and waste removal as required by Contract Documents
    • Delivery to owner of operations and maintenance documents as required by the contract Documents
    • Make available a copy of completed as-built drawings completed to date on site
    • Startup and testing required for occupancy as required by Contract Documents
    • Ability to secure access to the Work has been provided to the Owner
    • Demonstration and training as required by the Contract Documents, is scheduled by the Contractor, acting reasonably

Supplementary Conditions for use between Owner and Prime in Alberta with CCDC2 (to align with requirements of the Alberta Builders’ Lien Act) has also been revised to align with CCDC 2 -2020. The intent of the new CCDC 2 -2020 is to minimize contract language dealing with release of holdback and simply rely on the prevailing lien legislation to govern the parties. Consequently, the detailed language on release of holdback for completed subcontracts has been deleted, relying on GC 5.4.5 as follows:

5.4.5 Where legislation permits progressive release of the holdback for a portion of the Work and the Consultant has certified or verified that the part of the Work has been performed prior to Substantial performance of the Work, the Owner hereby agrees to release, and shall release, such portion to the Contractor in accordance with such legislation.

PLEASE NOTE: With the amended Alberta Builders’ Lien Act anticipated to come into effect July 1, 2021, further revisions to ACA Forms will be required. These revisions will be known as: ACA Form A (2021), ACA Form B (2021) and ACA SC CCDC2 – 2021.