CCDC

1
CCDC
Wednesday, October 3, 2007 Panel
Presentation CPPC Forum 2007, Calgary
2
Panel Presentation
Terry Brown Contractor CCA Rep Gregory Hersen
Lawyer Bar Assoc. Rep Ron de Vries Owner Rep

• Who is CCDC?
• Introduction to the new CCDC-2
• Panel Presentation Key Risks
• QA

3
Who is CCDC?
4
Who is CCDC?
5
CCDC Mandate
CCDC is responsible for the development,
revision and improvement of Canadian standard
construction documents used by Owners,
Consultants, Contractors and other participants
in both public and private sectors throughout
Canada.
6
Why Use CCDC Documents?

• Relied on as industry standards.
• Provide balance, uniformity and standardization
  for bidding and contract procedures.
• Fair allocation of risks and protects the rights
  of all parties equitably.
• Developed in collaborative environment.
• Unbalanced contracts increase risk of claims and
  disputes.
• Industry wide endorsement - CCDC sells over
  50,000 documents annually.

7
Document Development
1. Draft is prepared by working group
2. Reviewed in detail by Committee
3. Draft is submitted to constituent organizations
4. Final document issued for endorsement
8
Whats special about CCDC Documents?
CCDC Documents have endorsement from all of the
constituent member organizations and are
applicable to a broad range of construction
industry use.
9
CCDC Documents

• CCDC 2 - 1994 Stipulated Price Contract
• CCDC 3 - 1998 Cost Plus Contract
• CCDC 4 - 1982 Unit Price Contract
• CCDC 9a 9b - 2001 Statutory Declaration
• CCDC 11 - 1996 Contractors Qualification
• CCDC 12 - 1994 Project Financial Info
• CCDC 18 - 2001 Civil Works Contract
• CCDC 20 - 1994 Guide to Use of CCDC 2

10
CCDC Documents

• CCDC 21 - 2000 Guide to Construction Insurance
• CCDC 22 - 2002 Guide to Construction Surety Bonds
• CCDC 23 - 2005 Guide to Calling Bids and Awarding
  Contracts
• CCDC 24 - 1996 Guide to Model Forms and Support
  Documents
• CCDC 40 - 1994 Rules for Mediation and
  Arbitration of Construction Disputes

11
CCDC Documents

• CCDC 43 - 1998 Guide to Use of CCDC 3
• CCDC 48 - 2002 Guide to Use of CCDC 18
• CCDC 220 2002 Bid Bond
• CCDC 221 - 2002 PerformanceBond
• CCDC 222 - 2002 Labour Material Payment Bond

12
Documents Under Review

• CCDC 2 Stipulated Price Contract
• CCDC 4 Unit Price Contract
• CCDC 5A 5B Construction Management Contracts
• CCDC 14 Design-Build Contract
• CCDC 15 Design-Builder/Consultant Contract
• CCDC 20 Guide to use of CCDC-2
• CCDC 45 Guide to Construction Management
• CCDC 46 Guide to Design-Build

13
CCDC Documents
14
Introduction to the new CCDC - 2
Overview

• Editorial updates to the 1994 version.
• Significant changes to key provisions.
• Indemnification
• Waiver of Claims
• Roll-out by end of 2007
• CSC Training Sessions

15
CCDC 2 Stipulated Price Contract
GC 12.1 Indemnification

• Introduces concept of mutual indemnification
  between Owner and Contractor.
• Consultant removed.
• Introduces limits of liability.

16
CCDC 2 Stipulated Price Contract
Owner/Contractor Indemnify and hold harmless each other against Nature of the Claims Monetary Limitation Time Limitation
Direct Claims Insured and uninsured claims Contract Price, but no less than the greater of 2M and the insurance limit, and no more than 20M Shorter of 6 yrs from the date of Substantial Performance of the work and provincial limitation statute
Third-Party Claims Relating to bodily Injury or Property Damage Insured Claims No Limit
Third-Party Claims Relating to bodily Injury or Property Damage Uninsured Claims No Limit
17
CCDC 2 Stipulated Price Contract
EXCEPTIONS
Owner Indemnifies the Contractor Nature of the Claims Monetary Limitation Time Limitation
Toxic/Hazardous Substances Presence prior to the Work No limit No time limitation
Infringement of a patent of invention Supplied to the Contractor No limit No time limitation
Lack of or defect in title No limit No time limitation
18
CCDC 2 Stipulated Price Contract
GC 12.2 Waiver of Claims

• Concept of mutual waiver
• Waiver period limit established 6 days before
  expiry of the lien period.
• Now Substantial Performance vs. Final Certificate
  for Payment.
• Exceptions
• Claim for which a lien may be asserted and others
  

19
Panel Presentation Key Risks
Contractors Perspective

• Timely Full payment.
• Owners Consultant Team
• Contract Security Insurance
• Mould
• Indemnification Waiver of Claims

20
Panel Presentation Key Risks
Legal Perspective

• Qualified bids.
• Inappropriate use of supplementary conditions to
  CCDC.
• Failure to keep proper documentation for dispute
  resolution.
• Insufficient or inappropriate contract security.
• Non-compliant bids.
• Inappropriate use of bidding processes, ie. RFPs
  v. Tenders

21
Panel Presentation Key Risks
Owner Perspective

• Quality of bid documents.
• Accuracy of estimates.
• Funding uncertainty and phasing.
• Attracting bidders.
• Qualified or non-compliant bids.
• Contractor performance quality time.
• Construction site safety constructor.
• Contract changes.
• Contract completions.

22
Panel Presentation Key Risks
Owner Perspective

• Quality of bid documents.
• Enhanced communication with AE firms during the
  preparation of contract documents.
• Bid-ability build-ability reviews before
  tender.
• Restricted amendments within 5 days of closing.

23
Panel Presentation Key Risks
Owner Perspective

• Accuracy of estimates.
• Funding uncertainty and phasing.
• Currently a serious risk.
• Must factor in market conditions.
• Build in alternates to ensure award.
• Retain professional quantity surveyors/estimators.
  
• Build in contingencies to project funding.
• Better understanding of the accuracy of
  estimates.

24
Panel Presentation Key Risks
Owner Perspective

• Attracting bidders.
• Ensuring adequate funds are available.
• Appropriate packaging of work.
• Using bid documents that are familiar to the
  industry.
• Maintaining productive relationships.
• Ensuring payment.
• Track response to bids and follow-up with
  plan-takers to find out why they did not bid.
• Provide bid documents to Association Plans Rooms.

25
Panel Presentation Key Risks
Owner Perspective

• Qualified or non-compliant bids.
• Waiver of non-compliance clause.
• Use industry standard documents.
• Ensure terms and conditions are appropriate to
  the target industry.
• Pre-tender site visits and briefings.

26
Panel Presentation Key Risks
Owner Perspective

• Contractor performance quality time.
• On-site inspections and QA program.
• Pre-qualification for specialized work.
• Bond or security for all contracts gt100K
• Mandatory schedule with progress payments.
• Aggressive completion performance targets.
• Contractor Performance and Evaluation Review
  (CPER) on 100 of contracts.
• Restricted bidders list.

27
Panel Presentation Key Risks
Owner Perspective

• Construction site safety constructor.
• Safety section in the contract documents to
  clearly define responsibilities.
• Safety inspectors.
• Work closely with provincial authorities.

28
Panel Presentation Key Risks
Owner Perspective

• Contract changes.
• Currently average 11 of contract award value.
• Part of corporate performance measure.
• Rigorous scope management.
• Includes extension of time costs if warranted.

29
Panel Presentation Key Risks
Owner Perspective

• Contract completions.
• Establish realistic completion dates in the
  contract.
• Set corporate targets for timeliness of
  substantial and final completions.
• Rigorous monitoring of schedule.
• Progress payments tied to schedule reviews.
• Early intervention for problem contracts.
• Use of contract funds to complete deficiencies.

30
THANK YOU