Compare and Contract: CCDC 5A & CCDC 5B

CCDC-style agreements are used for many construction projects in Ontario. Two of the more common base-style agreements, the CCDC 5A and CCDC 5B, present very different project delivery methods from both the owner and construction manager perspective.

CCDC 5A – 2010 Construction Management Contract

A CCDC 5A contract is typically used where an owner wants to work hand-in-hand with a construction manager to complete a project. Under this format, the owner will retain trades directly and will retain responsibility for the management, supervision, and progress of its trades. The construction manager in a CCDC 5A contract helps the owner manage its trades and provides various advisory services, including negotiating contracts, reviewing budgets, and facilitating communication and payments.

In a typical CCDC 5A contract, the owner retains more risk than other contractual arrangements. If the project is delayed or trades default and disrupt the project, those risks fall back on the owner. The construction manager’s risk is typically limited to the scope of advisory services provided under the terms of their agreement with the owner.

A CCDC 5A contract framework is an appropriate starting point for owners who know what they want to build and who want to be in direct control of construction, with support from a construction manager.

CCDC 5B – 2010 Construction Management Contract – For Services and Construction

A CCDC 5B contract, on the other hand, is closer to a more traditional, general contractor/owner-style project delivery method. Under the CCDC 5B format, a construction manager enters into direct contracts with trade contractors and retains overall responsibility for the performance of the work. The construction manager is typically paid a fixed percentage of the overall cost of the work and is more involved in the day-to-day operations of a project than under a standard CCDC 5A arrangement.

From the owner's perspective, the CCDC 5B format allows owners to pass off much of the responsibility for constructing a project to a construction manager. The owner remains involved and is responsible for certain key elements of the project, like managing the construction manager, obtaining certain permits, and obtaining a complete and constructible design.

A CCDC 5B contract is an appropriate starting point for owners who know what they want to build but who want someone else to take on the responsibility of constructing the project.

Make your Contracts Your Own

Regardless of which contract model is appropriate for your specific project, the base CCDC 5A and CCDC 5B can and often should be modified by including supplementary conditions to define the requirements of a specific project and to clarify the division of obligations and risks. The lawyers of Construct Legal are experienced with all varieties of CCDC and non-CCDC construction contracts. We can help you prepare contracts by ensuring you understand the risks associated with your projects and by helping control those risks wherever possible.

This article is not legal advice and is provided for informational purposes only.