Sunday, May 26, 2024

Using Industry Standard CCDC Contracts

What are CCDC Contracts

The 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.

The committee includes two construction owner representatives from each of the public and private sectors, as well as representatives from four national organizations. All CCDC Documents are endorsed by these national organizations:

CCDC representation also includes a lawyer from the Canadian Bar Association (Construction Law Section), who sits as an ex-officio member.

Accessing CCDC Contracts

Descriptions of the various CCDC contracts and explanatory guides can be accessed here

To download and use the following documents you will need to purchase a registration number from any of the Alberta Local Construction Associations 

Benefits of Using CCDC Contracts

CCDC documents are used in contractual arrangements across the Canadian construction industry. 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.

By using uniformed and standardized documents from CCDC, practitioners in the Canadian construction industry are using documents that are:

• relied upon as familiar industry standards,
• developed through a collaborative and consensus-based approach that allows for the serious consideration of rights, interests and obligations of all parties,
• protect the interest and preserve the rights of all parties involved in a construction project, and
• provide balance, uniformity and standardization for bidding and contracting procedures.

CCDC documents can help reduce claims and disputes, and the added expense and time associated.

Here are two videos by owners who speak to the benefits of using CCDC contracts:

Boris Dragicevic Vice President of Facility Development for the University of Calgary

And Omer Gobeil and Tyler Kacsor from the City of Lethbridge Purchasing department.

CCDC Resource Library

Source and LinkSource TypeTitlePurposeCategoryYear
CCDCAssociationCCDC BulletinsExplain clauses and represent industry best practicesGeneral1998-2017
ConstructConnectJournalCCDC documents can help restore trust and manage risksPromote use of CCDCGeneral2008
Construction CanadaJournalDawn of the ‘super contract’Advocate for reducing the number of CCDC contractsGeneral2014
SHK LawLaw FirmSupplementary Conditions In Construction ContractsDiscusses supplementary conditionsGeneral2016
Miller ThomsonLaw FirmThe Ins and Outs of Statutory Appeals of Arbitration DecisionsClarify arbitrationGeneral2018
Ontario Construction ReportJournalCollaboration and CCDC adherence vital for complex development project successPromote use of CCDCGeneral2018
Miller ThomsonLaw FirmCCDC 2 – 2008: NEW AND IMPROVEDIntroduction of 2008 changesCCDC22008
Jenkins Marzban Logan LLPLaw FirmCCDC2 – 2008 Stipulated Price ContractOverview of changes in 2008 CCDC2CCDC22008
ConstructConnectJournalNew CCDC2 includes significant changesIntroduction of 2008 changesCCDC22008
Construction Law CanadaJournalDoes The CCDC Dispute Resolution Clause Require Arbitration?Discusses meaning of arbitration clause in CCDC2CCDC22013
Glaholt LLPLaw FirmTHE ROLE OF FUNDAMENTAL BREACH IN CCDC 2 CONTRACTSClarifies contractor fundamental breach in CCDC2CCDC22014
DentonsLaw FirmIndemnity, Insurance, Waiver, and Warranty Provisions of the CCDC-2 Stipulated Price ContractExplains advantages and disadvantages of CCDC2, and indemnity, insurance, waiver and warrenty provisionsCCDC22015
Jenkins Marzban Logan LLPLaw FirmCCDC5a – 2010 Construction Management Contract for ServicesOverview of CCDC5a and CCDC5bCCDC52010
Burnet, Duckworth and Palmer LLPLaw FirmConstruction Management Standard ContractExplains differences in CCDC5a and CCDC5bCCDC52013
Langlois Law FirmDemystifying Construction Management ContractsExplains CCDC5CCDC52018
CCDC 14 & 15
Blaney McMurtry LLPLaw FirmNew CCDC Design-Build ContractsIntroduces new CCDC14 and CCDC 15 documentsCCDC14/152013
Construction Law LetterJournalAn Initial Review Of The New CCDC 14Introduces new CCDC14 and CCDC 15 documentsCCDC14/152014
Borden Ladner GervaisLaw FirmUpdated Design-Build ContractsIntroduces new CCDC14 and CCDC 15 documentsCCDC14/152014
Fredricton Northwest Construction AssociationAssociationCCDC14 Design-Build Stipulated
Price Contract
Very brief overview of CCDC14CCDC14
Miller ThomsonLaw FirmCCDC Introduces Integrated Project Delivery ContractSummary of IPDCCDC302018
Ontario Construction ReportJournalCCDC30: The new Integrated Project Delivery contract takes design and construction collaboration and risk sharing to a new levelIntroduction to CCDC30CCDC302018
OslerLaw FirmIntegrated Project Delivery model in Canada: What you need to knowSummary of IPDCCDC302018

Understanding the Risks of Non-standard Contract terms

With funding support from Alberta Economic Development and Trade, ACA has undertaken an initiative to improve understanding of risk allocation within the terms of non-standard commercial contracts.

Approximately half of Alberta contractors have 20 or fewer employees and nearly 80% have fewer than 100 employees.  Many of these contractors lack access to legal expertise to help them understand and appropriately price in their bids the risk that they are obliged to carry, arising from non-standard commercial construction contracts.  This problem is not unique to Alberta, indeed, the Canadian Construction Association, the Royal Architectural Institute of Canada, Consulting Engineers Canada, Construction Specifications Canada, and owner groups established years ago the Canadian Construction Documents Committee (CCDC) to create and promote standard CCDC contracts and guides.   CCDC contracts have been tested in the courts and are generally well understood by all stakeholders.

While some owners (procurers of construction) embrace CCDC, many have retained counsel to create non-standard contracts which generally oblige contractors to carry all risks. Large well-resourced contractors can retain counsel and frequently negotiate different terms.  Small to medium sized contractors frequently bid work without an understanding of the risks they may bear and fail to price accordingly.

This leads to unsatisfactory performance in the construction market in the following ways:

  • Many sophisticated contractors will refuse to bid, limiting the pool of bidders, and are frustrated that the subsequent bidding distorts the true market price
  • The winning bidder frequently underprices the true cost, and either fails to perform, or can only perform after expensive disputes and rework through change orders. Jobs are at risk due to failure of the bidder, and / or the purchaser is dissatisfied with poor performance and unanticipated problems of quality, schedule, and cost.

ACA’s initiative includes the following:

  • Collect, analyze, and publish the risk and cost implications of terms frequently found in commercial construction contracts in Alberta,
  • Publish and disseminate the findings of the analysis,
  • Support workshops or other discussion forums to review findings of construction value chain stakeholders, including owners, consultants, and contractors,
  • Develop new or add to existing educational seminars for Alberta contractors to educate contractors, and
  • Develop an online repository of the preceding and recognize users of standard contracts in order to sustain the initiative

Further Information