b'BENCHMARKSTHE NEWCCDC 22020CONTRACTCHANGES YOU NEED TO KNOWBy Daryl Chicoine and John MartensThe CCDC 2 Stipulated Price Contract isoccupancy permitcompared to (Part 11), Early Occupancy and Warranty one of the most common constructionCCDC 22008, an occupancy permit is(Part 12) and Indemnification and Waiver contracts used throughout Canada.a new requirement; (Part 13), among other things.It provides a well-known, widely Final cleaning and waste removalPaymentsrecognized framework for owners,as required by the contractthe Payment Legislation and Adjudication contractors, financers and consultants,CCDC 22008 (General Condition 3.13)CCDC 22020 adds the defined term containing contract clauses that haverequired Cleanup to be performedPayment Legislation and revises the been the subject of numerous court andbefore applying for SubstantialGeneral Conditions to be more consistent arbitral decisions and which providePerformance, so this is a similarwith prompt payment legislation guidance for interpretation.requirement; requirements. It expressly references that In December 2020, the Canadian Delivery of operations andit does not affect the rights of the parties Construction Documents Committeemaintenance documentation asto resolve any dispute by adjudication (CCDC) released the much-anticipatedrequired by the contractcompared as prescribed by applicable legislation.update, CCDC 22020. Although theto CCDC 22008, this is a Several years ago, a bill for prompt new CCDC 22020 maintains the samenew requirement; payment legislation was proposed in the framework of project delivery as the A copy of as-built drawingsManitoba Legislature. At time of writing, previous version (CCDC 22008) andcompleted to date at the site the bill has not been re-introduced in the many of the same General Conditions, compared to CCDC 22008, this is acurrent session. Following Ontarios lead, it does contain changes that will new requirement; many provinces including Saskatchewan impact projects.and Alberta are in the final stages of Part 12: Owner TakeoverStartup testing required forenacting and implementing prompt The CCDC 22020 introduces a new Partimmediate occupancy, as required bypayment legislation. If and when prompt 12 including a new milestone entitledthe contractcompared to CCDC 2 payment legislation is implemented Ready-for-Takeover. While an owners2008, this is a new requirement; in Manitoba, the new CCDC 2 should takeover of work milestone is new to the That the owner has the ability toaccommodate the changes.CCDC 22020, it is not a new conceptsecure access to the work, if required in the industry; other forms of contractby the contract; and Applications for Payment and(for example, FIDIC style contracts) use a Demonstration and training haveStatutory Declarationssimilar taking over milestone. been scheduled, as required by CCDC 22020 requires the contractor The Ready-for-Takeover milestone isthe contract. to submit applications for payment in addition to, and follows, substantialmonthly to the consultant and owner performance. The definition ofIn the same way that CCDC 22008simultaneously. It also provides that Substantial Performance of the Workrequires the contractor to apply to theeach application for payment (after the has now been shortened as comparedconsultant for Substantial Performance,first payment) shall include evidence of to CCDC 22008, but fundamentallyPart 12 of CCDC 22020 requires thecompliance with workers compensation remains as defined in the lien legislationcontractor to apply in advance forlegislation and a CCDC 9A Statutory applicable to the Place of the Work. Ready-for-Takeover, and the consultantDeclaration by the contractor.now has 10 calendar days to respond. CCDC 22008 only required a statutory The prerequisites to attain Ready-for- Part 12 also now provides a process fordeclaration when applying for payout of Takeover under General Condition Early Occupancy by the Owner beforestatutory holdback.12.1 are: Ready-for-Takeover has been attained. Timing of Payments by the Owner That the consultant has certified orReady-for-Takeover is important The 20 calendar days for payment verified Substantial Performancethus,because it is the end date in Articleby the owner in CCDC 22008 has been Ready-for-Takeover necessarily requiresA-1.3 for the purposes of the contractchanged to 28 calendar days after the Substantial Performance; time, as opposed to Substantialreceipt by the owner and consultant ofEvidence of compliance with thePerformance. It is also an important datethe application for payment, subject to requirements for occupancy or anfor the Insurance Requirements compliance with payment legislation. Issue 1 Spring Edition 2021 BUILD MANITOBA 31'