b'BENCHMARKSCCDC 5B2025The evolution of the construction management contract By John Martens and Shelly Neal, MLT Aikins LLPIn June 2025, the Canadianfee. Reimbursable expenses forReady-for-Takeover, Early Occupancy Construction Documents Committeepre-construction are identified in aand Warranty: The Ready-for-Takeover (CCDC) released updated versions ofschedule and include an agreed- concept was first introduced in CCDC several of its construction contractsupon mark-up. A schedule to the22020. It has now been introduced alongside a new guide created forcontract includes a user-friendlyinto CCDC 5B2025. Ready-for-integrated project delivery on larger- selection of the pre-constructionTakeover does not replace substantial scale projects. These documents arephase scope. performance of the work, whichdesigned to ensure compliance with Construction Phase: The constructionremains important for legislation prompt payment legislation, updategoverning liens and holdback. Rather, industry expectations and implementphase also includes the ability toReady-for-Takeover is attained after changes previously made in the CCDCselect a fixed fee or percentage feesubstantial performance and requires 22020 Stipulated Price Contract. of the cost of the work. As with CCDCadditional prerequisites such as final 5B2010, a detailed list is includedcleaning and waste removal, delivery Some of the important changes made toto calculate the cost of the work. Aof operation and maintenance manuals, CCDC 5B are outlined below; however,schedule to the contract includesstartup and testing and access bythose involved in the industry area user-friendly selection of thethe owner.encouraged to review the documentsconstruction phase scope.in detail and consult with legal counselIn CCDC 5B2010, pricing optionsThe express ability of the owner to with any questions. were included in the articles, and onlyobtain early occupancy has also been CCDC 5B CONSTRUCTIONthe stipulated price option had its ownintroduced. If an owner takes early MANAGEMENT CONTRACTFORappendix. CCDC 5B2025 introducesoccupancy of a part of the work, it is SERVICES AND CONSTRUCTION appendices for the guaranteed deemed to have taken over from the The CCDC 5B involves an ownermaximum price (GMP) and GMPdate of occupancy, the construction retaining a construction managercost savings. Each appendix acts asmanager is no longer responsible for advisory support during asupplementary conditions, which amendfor that portion of the work, and the pre-construction phase, then executingthe articles and general conditions for thewarranty commences. Notably, the the required work throughout theselection option. one-year warranty now commencesconstruction phase. Since its releaseTermination for Convenience: Thefrom Ready-for-Takeover, notin 2010, the CCDC 5B has gainedrevised CCDC 5B2025 introduces thesubstantial performance.widespread use across Canada.ability of the owner to suspend servicesLimitation of Liability: CCDC 5B2025 CCDC appears to have considered theand work and terminate the contract atcreates a new standalone general experience of owners and constructionany time for convenience (i.e., withoutcondition for limitation of liability. managers over the past several years,cause). It contemplates pre-determinedAlthough similar to the limit of liability in and has implemented several changesdirect damages based on an agreed- CCDC 5B2010, the new clauses are designed to clarify and improve theupon percentage of the latest acceptedeasier to follow. Notably, the concept contract. These include: construction cost estimate if terminationof a substantial defect or deficiency Scope and Pricing: The constructionoccurs during the pre-constructionin the work, which was previously only managers scope and fees arephase. If termination occurs during thereferenced as an exception to thenow broken down between theconstruction phase, the constructionwaiver of claims by the owner, is now pre-construction services and themanager is entitled to direct damageslisted as an exclusion to the limits construction services: sustained as a result of the termination,of liability. A substantial defect or including reasonable loss of profit.deficiency is one that affects the workPre-Construction Phase: For theBecause the term direct damage is notto such an extent or in such a mannerpre-construction phase, the ownerdefined in the contract, it is expected tothat a significant part or the whole of the and construction manager canrequire future interpretation when thework is unfit for the purpose intended by select a fixed fee or time-basedissue arises. the contract documents.26 BUILD MANITOBAwinnipegconstruction.ca'