CCDC wy a guide to the use of CCDC 2 — 2008 stipulated price contract 2008 o@o5/ 07‘The Canadian Construction Documents Committee (CCDC) is a national joint committee responsible for the development, production and review of standard Canadian construction contracts, forms and guides. Formed in 1974 the CCDC is made up of volunteer representatives fom: Public Sector Owners Private Sector Owners Canadian Bar Assocation (Ex-Officio) "The Associaton of Canadian Engineering Companies "The Canadian Construction Association "Construction Specifications Canada The Royal Architectural Institute of Canada *Committee policy and procedures are directed and approved by the four constituent national organizations. (Comments and inquires shouldbe directed to ‘The Secretary Canadian Construction Documents Committee 400 - 75 Albert Street Ottawa, Ontario KIP SET Tel: (613) 236-9455, Fax: (613) 236.9526 www.codeorg CCDC guides are products of a consensus-building process aimed et balancing the interests ofall parties on the construction project. They reflect recommended industy practices. Readers are ‘cautioned that CCDC guides do not deal with any specific fact situation of circumstance. CCDC _Buides do not constitute legal or other professional advice. The CCDC and its constituent member ‘organizations do not accept any responsibilty or liability for loss or damage which may be suffered as a result ofthe se and interpretation ofthese guides, CCDC Copyright 2008 “Must not be copied in whole or i part without the written permission ofthe CCDC. > @ =Standard Coston Document CCDC 20-2008 ‘TABLE OF CONTENTS ‘A GUIDE TO CCDC CONTRACT FORMS: ‘What isthe CCDC The Use of CCDC Contract Forms CCDC Contract Forms Adapting the CCDC Contracts ‘Administrative Procedures Relationship to Division | ~ General Requirements ofthe Specifications A GUIDE TO THE USE OF CCDC 2 ~ 2008; ‘The Agreement Between Owner and Contractor Provisions in the Agreement Between Owner and Contractor Article A-l The Work Amicle AS Payment Article A-2 Agreements and Amendments Article A-6 Receipt of and Addresses for Notices Article A-3 Contract Documents in Waiting Article A-4 Contract Price Executing the Contract ‘The Definitions ‘The General Conditions GC1.1 Contract Documents GC6.6 Claims fora Change in Contract Price GC21 Authority of the Consultant, GC7.1 Ovmer’s Right to Perform the Work, GC22 Role ofthe Consultant Temuifate the Contactr’s Right ty GC23 Review and Inspection of the Werk. Coatiaue with the Work or GC32 Construction by Owner or Other Terminate the Contract Contractors GC72 Contractor's Right to Suspend the Work GC38_—Labourand Products or Terminate the GC3.9 Documents atthe Site Contract GC3.10 Shop Drawings GC8.1 Authority of the Consultant GC41 Cash Allowances GC83__ Retention of Rights GC42 Contingency Allowance GC9.1 Protection of Work and Property GC5.1 Financing Information Required ofthe GC92 Toxic and Hazardous Substances and Owner Materials GC5.2 Applications for Progress Payment GC9.4 Construction Safety GC5.3 Progress Payment GC95 Mould GC5.4 Substantial Performance of the Work GC 10.1 Taxes and Duties GC5.5__ Payment of Holdback upon Substantial GC 10.2 Laws, Notices, Permits, and Fees Performance ofthe Work GC11.1 Insurance GC6.1 Owner's Right to Make Changes GC112 Contract Security GC62 ” Change Order GC 12:1 Indemnification GC63_— Change Directive GC 122 Waiver of Claims GC6.4 Concealed or Unknown Conditions GC123 Warranty GC6S Delays Notice to Users of CCDC 2~ 2008 Governed By the Civil Code of Quebec e FURTHER REFERENCESA GUIDE TO CCDC CONTRACT FORMS CCDC standard documents are products ofa consensus-building process aimed at balancing the interests of all parties involved in construction projects. They reflect recommended industry practices. Reeders are cautioned that the guides do not deal with any specific fact, situation or circumstance. CCDC guides do not constitute legal or other professional advice. ‘The CCDC and its constituent member organizations do not accept any responsibilty or liability for loss oF ‘damage which may be suffered as a result oftheir use or interpretation. ‘This guide is intended to assist Owners, Contractors and Consultants. While this guide does not provide advice on every provision of CCDC 2 ~ 2008, many of which are self-explanatory it explains all key provisions. The guide will avoid restating the wording of general conditions and listing what is obvious in the contract. Cross-references indicate key interrelationships within the contracts. The discussion and annotations cannot be comprehensive, as it is simply not possible to anticipate all circumstances WHAT IS THE CCDC? ‘The CCDC is a national joint committee responsible for the development, production and review of standard Canadian construction contracts, forms and guides. Formed in 1974, the CCDC is ‘made up of volunteer representatives ftom: *Assosiation of Conadian Enginccring Companies *Cenadian Construction Association *Construction Specifications Canada “*Royal Architectural Institute of Canada Public Sector Owners Private Sector Owners ‘A member of the legal profession (Ex-Officio) ‘All CCDC documents carry the endorsement ofthe *four constituent national organizations and all CCDC representatives including all owners, ‘THE USE OF CCDC CONTRACT FORMS Why Use CCDC Documents? They ae relied upon a familiar industry standards. + They provide balance, uniformity and standardization for bidding and contacting procedures. + They respec the interests and preserve the rights of all parties involved in constuction project by equitably allocating risk tothe party mos able to manage it + They are developed in a eolaborative environment that allows forthe serious consideration of the right, interests and obligations of all parties + Balanced contacts reduce the risk of claims and disputes, avoiding needless expense and loss of time to the construction proces. ‘+ They recognize legal precedents established by the cours ‘ccDc 20-2008 1Copyright AILCCDC documents are protected under copyright law. The use of any CCDC form or content without the consent of the CCDC infringes on this copyright. A seal must be affixed to all CCDC contract forms to ensure the integrity of the document. ‘The seal emphasizes that the CCDC document has not been altered. The absence of the seal constitutes an illegal use of a CCDC contract form, ‘Understanding the Contract Forms Users of CCDC contract forms should understand that: lar set of relationships between the participants to the construction + they establish a parti process; and * while they are widely applicable, where project specific adaptation is necessary, they may be supplemented, (refer to CCDC Bulletin 7) Consultants may assist the Owner and the Owner's legal counsel in establishing the terms ofthe Owner-Contractor documents but should not take responsibility for the legal content and sufficiency ofthese documents Capitalized terms in the CCDC contract forms ‘are titles of numbered articles and referenced paragraphs, subparagraphs, or clauses; or ‘are titles of other published CCDC contact forms; or ‘+ are defined terms, Capitalized terms italicized are defined and carry 2 specific meaning and application under the contract CCDC contract forms have important legal consequences. Consultation with a lawyer familiar with the construction industry is recommended, so that users have a full understanding of the ‘meaning of the document provisions. CCDC contract forms also have important insurance provisions drafted to accommodate an ‘evolving insurance market. It is highly recommended that advice on insurance matters be ‘obtained from insurance professionals properly qualified and licensed to do so. ‘The insurance provisions in CCDC 2 ~ 2008 are significantly different from past versions CCDC CONTRACT FORMS ‘The CCDC publishes four standard construction contract forms: CCDC2 Stipulated Price Contract, CCDC3 Cost Plus Contract CCDC4 Unit Price Contract CCDC 18 Civil Works Contract (Visit the CCDC web ste for additional information www.cede.org) All these forms are designed for execution by the Owner and the Contractor. All require thatthe ‘Over has engaged a Consultant (an Architect or Engineer licensed to practise in the province oF territory of the Place of the Work), to prepare the Contract Documents and to administer the Contract. 2 ‘ecDc 20-2008‘The CCDC contract forms ‘recognize the need to protect and preserve the interests and rights of both parties in a fair and ‘equitable manner; incorporate current standard practices and procedures used inthe industry; clearly define the appropriate roles and obligations ofthe Owner, Contractor and Consultant; are intended for use in any jurisdiction within Canada; can be used for large or small projects and new construction or renovation work, in both the private and public sectors; and are kept current in an evolving insurance market ‘The CCDC contract forms are recognized for clarity and simplicity of language and are drafted ina style intended to be easily understood by the partie, using terms and expressions familiar to the industry. ‘Words such as "reasonable" and "promptly" are often used throughout CCDC 2 - 2008, ‘They are used t0 describe the manner in which one of the parties tothe Contract must act in relation to the other party with respect to a task tobe performed ora decision ta be made. Determination of what is “reasonable” will depend on the nature, purpose and circumstances of each case. The word is used when a party is required not to be unreasonable, not to be unnecessarily adversarial in the decision required to be taken, not to act improperly inthe context of the action being addressed, and where some degree of flexibility is warranted, ‘The intent behind the word "prompt" and the expression "reasonable time" is to require the parties not to delay in taking the required action thereby causing a delay in the performance of the Work, or not to cause further deterioration, or an extension, of an unfortunate event or situation.” These are used in circumstances where imposing a specific time limit would be {impractical in cases where so much would depend on the context and the circumstances, In the typical construction project, the Consultant isnot a party tothe Contract. The Consultant has a separate agreement with the Owner. The CCDC contract forms are consistent with standard forms for the Owner-Consultant agreements, e.g. RAIC 6 (architects) and ACEC 31 (engineers). A consistent set of terms is used and the responsibilities and obligations of the various partes are carefully co-ordinated. It is important to confirm thatthe Consultant's roles and responsibilities in the OvmeriConsultant agreement are compatible with those in CCDC ‘contact forms. ‘The CCDC contract forms are divided into three sections called: ‘+ Agreement Between Owner and Contractor ‘Definitions General Conditions ‘The Agreement contains blanks that must be filled-in by the partes in order to complete those provisions which are unique tothe particular Work and Project. The Agreement section of each ofthe various CCDC contract forms i distinct to reflect its specific pricing method. ‘The Definitions establish a specific meaning for terms used repeatedly throughout the CCDC contract forms. Defined terms are highlighted throughout the forms by capitalizing the first letter and italicizing them, ‘ccpc 20-2008 a‘The General Conditions ofthe Contract are the part of the Contract Documents that set forth the ‘Rahs and resposibilies ofthe parties and define their relationships. The General Conditions ra those provisions which, to the greatest extent posible, havea consistent applieston to TTOCDC contract forms as well as to any project on which they are used. With the introduction wT CDC 41 CCDC Insurance Requirements, the insurance provisions of the general or Gos (GCI1) are easily updated to reflect curtent insurance market coverages, The sme Seance ihe mediation provisions of the general conditions (GC8.2) with the introduction of GbE 40 RULES FOR MEDIATION AND ARBITRATION OF CONSTRUCTION DISPUTES, ADAPTING THE CCDC CONTRACTS ‘A key value of CCDC contract forms is that many of their users (architects, engineers Ay bes, subcontractors, and owners) have become thoroughly familiar with their provisions, sane efidence in their faimess, and recognize their format ata glance. Even if CCDC contact pave Sere to be transcribed verbatim (Gnstead of using the printed document) this very important value would be los. ‘A copyright seal must be used on all CCDC contract forms to be executed from prin creceeie versions, ‘The use of a copyright seal is intended to demonstrate that the CCDC eat form is authentic, accurate and unaltered with the exception only of additions or modifications as may be set forth in supplementary conditions CCDC eontract forms are an accumulation ofthe experience, thought, and talent of architects, Ciaineers owners contactors, and subcontractors, They, end others have been ably assisted by feral counsel and insurance and surety advisors and there is along history of judi reeedents cay athe language used in the documents. Persons intending to substitute their own ‘onsions for those in the original CCDC document should obtain expert advice. Maditcations Pay cause the Over, Consulont, Contractor, ot Subcontractor to unintentionally sssine cessary oF inappropriate responsibilities ot rsks. Furthermore, modifications may weaken wae istosshipe among the documents" provisions or between the documents and the other project agreements with which they shouldbe co-ordinated Unnecessary and improper modifications to CCDC standard contract forms can create serious problems. These may take the following forms: 1. Introduction of subject matter already addressed inthe text ofthe standard form which may cause conflict or uncertainty 2. Introduction of subject matter more appropriately dealt with elsewhere (eg, in the Instructions to Bidders or in the technical specifications). 4. New or replacement wording that is clearly designed to undermine the fundamental wwe of the CCDC Standard Contract Forms or the equitable balance of rights and ‘obligations of each party ‘4. Variations which do no more than re-state or paraphrase the standard text in the author's ‘own words. 4 cccoc 20-2008‘The CCDC appreciates that certain Owners or market sectors, as a matter of publie policy, locel, conditions or project-specific particulars, may with legitimacy seck to amend or customize a CCDC contract form. The CCDC issues these precautions to the four concems noted above: 1. The CCDC standard contract forms’ General Conditions, Definitions and Agreements are interrelated. Before introducing any new or amended subject matter, it would be prudent to review the forms thoroughly to ensure thatthe subject is not already addressed. 2 Experienced industry participants anticipate and conduct their business operations based upon familiar document structures with clearly separated (but integrated) components. ‘Changing thet order may introduce confusion and increase the costs of document preparation, bidding and contracting. 3. A biased and inherently one-sided form of construction contract would likely deter most contracting partis; reduce (if not eliminate) competition, especially from those who are ‘more experienced and qualified; change the balance of risk; increase costs; and be iffcult for any Consultant to administer fairly and professionally. Furthermore, such a contract may not be upheld if ested in court. 4. Im addition to those already noted above, altering the standard wording presents a variety ‘of risks chiefly because the CCDC contract forms have: (@) compatibility with the standard wording, notes and responsibilities of such critically interelated industry documents as agreements between Clients (Owners) and Architects or Engineers, construction subcontracts, and construction administration forms; (©) compatibility with standard wording, terms and forms of industry acknowledged insurance policies and surety bonds; and, especially (©) an accumulated history of use and interpretation by the courts, In order to indicate how to complete some of the blanks provided in the Agreement section or if, due to particular circumstances, it becomes necessary to adapt the text of a CCDC contract form for a specific instance, the preferred method of effecting such adaptations is through the use of| Supplementary Conditions, The CCDC Bulletin 7 provides additional information on the use of| supplementary conditions with CCDC standard contract forms. ADMINISTRATIVE PROCEDURES Detailed administrative procedures established by the Ovner or Consultant for the administration of the Contract need not be included in Supplementary Conditions, Such procedures are appropriately the subject of the administrative procedures sections of Master Format' Division 1 General Requirements ofthe Specifications "Maser Format (Masts List of Secon Tile and Nunbes) i a copyright pubiation prepared jointly by ‘Construction Speciiations Canada (CSC) an the ConstetionSpeifiations inate (CSI) USA. ‘ecDe 20-2008 5RELATIONSHIP TO DIVISION 1 - GENERAL REQUIREMENTS OF THE SPECIFICATIONS Some of the General Conditions in CCDC 2 ~ 2008 deal with subject matter normally identified in Division 1, General Requirements of the Specifications (e.g. GC 3.13 ~ CLEANUP). In order to establish a standard procedure, they have been included in the General Conditions. They also interrelate with other provisions in CCDC 2. If you decide to delete such work-related provisions ffom the General Conditions, you mst delete the clause in its entirety and refer to the appropriate specification section. “The provisions of paragraph 1.1.7 in GC 1.1 - CONTRACT DOCUMENTS outline the priority ‘of documents to resolve conflicts within the Contract Documents. Placing work-related items fnto the Specifications that were previously contained in the General Conditions may lead to a different result than intended under GC 1.1.7. General requirements for such items as barricades, progress photographs, field offices, temporary Uilities, supervisory requirements and similar matters should be identified and deelt with in jon 1 of the Specifications 6 ‘ecDc 20-2008GUIDE TO THE USE OF CCDC 2~ 2008 ‘THE AGREEMENT BETWEEN OWNER AND CONTRACTOR ‘ccDc 22008 ‘The Agreement Between Owner and Contractor (Agreement) contains provisions that relate specifically tothe Work and which shall be completed or flled-n by the contracting parties to identity the date ofthe Agreement; identity the name of the Work; identity the partes to the Contract, ie, the Owner and Contractor; identify the Consultan, describe the Work to be performed by the Contractor, identify the location of the Place ofthe Work: state the Contract Time; list the Contract Documents and any negotiations agreed to in writing between the parties; state the Conract Price, Value Added Taxes, and total amount payeble;, state the method of payment, holdback, and name of the chartered lending institution whose prime rate will be used to determine the interest rates applicable to the Agreement; + record the addresses of the Owner, Contractor, and the Consultant for the purposes of the delivery and receipt of Notices in Writing, + identify the language of Contract, if applicable; + attach copies of the latest revision at the time of bid closing of CCDC 40 ~ Rules for Medistion and Arbitration of Construction Disputes and CCDC 41 — Insurance Requirements, and ‘© provide forthe formal execution of the Agreement by the parties, ADAPTATION OF THE AGREEMENT Bidders should be advised of any amendments tothe articles of the Agreement inthe Instruction to Bidders. These amendments shall be incorporated into the Agreement of CCDC 2 by cither revising the face of the Agreement form prior to signing the Agreement or by adding a supplementary condition for each amendment PROVISIONS IN THE AGREEMENT BETWEEN OWNER AND CONTRACTOR DATE ~ The date of the Agreement isthe date on which both parties execute the Agreement or a date agreed by both parties if they are unable to sign atthe same time, PARTIES ~ Use the correct legal names of the Over and Contractor and include a designation of the legal status of both parties when identifying the partis t the Contract. ARTICLE A-L THE WORK Identify the name of the Work and, where applicable, the Project. Where a contract reference number isto be used by the Owner, it should be stated as well ccne 20-2008 7Identify the Consultant. Ifthe Contract is tobe administered by someone other than the person who prepared the Contract Documents, identify the Consultant who will administer the Contract. Identify the commencement date and the date for Substantial Performance of the Work. This Constitutes the Contract Time refered to throughout the Contract Documents ARTICLE A-2 AGREEMENTS AND AMENDMENTS Explicitly identify in writing all negotiations, representations or agreements, if any, which the parties wish to be binding as part of the Contact by listing them in ARTICLE A3 — CONTRACT DOCUMENTS, ARTICLE A-3 CONTRACT DOCUMENTS ‘This provision requires the partis to ist all documents which ae to comprise the Contract. The purpose of listing the Contract Documents is to describe, in totality, the scope of the Work, schedule, negotiated items, and all other agreements between the Over and Contractor that form the basis of the Coniract. In addition to the Agreement, the Definitions, and the General Conditions, the listing should always include the following: + Supplementary Conditions (if applicable) + Specifications, including a listing of contents with section numbers and titles, number of pages, and date; Material finishing schedules; Drawings, giving drawing number, ile, date, revision date or mark; Addenda, giving ttle, number, date; and Other pertinent information documents, as appropriate | may be appropriate to identify pertinent information documents, such as geotechnical reports, site surveys. of existing structures, photographs, and investigative reports, as Contract Documents. The primary reason for including these information documents wotid be to allow the Contractor to rely on the data contained therein; thereby avoiding the Contractor's cost of duplicating the Owner's investigations. This would allocate to the Owner the risk associated with actual conditions that may differ from what was represented to the Contractor in such information documents at the time of bidding. However, the decision of whether or not to include any such information documents as Contract Documents remains with the Consultant and Owner. ‘The mediation/arbtration and insurance provisions of the contract are outlined in CCDC40 ~ RULES FOR MEDIATION AND ARBITRATION OF CONSTRUCTION DISPUTES and CCDC 41 - CCDC INSURANCE REQUIREMENTS respectively. A copy of the latest revision ‘of both documents at time of bid closing should be downloaded from the CCDC web site (wwnw-cede.org) and attached tothe contract for ease of reference. ‘The documents listed below are not normally included asa part ofthe Contract Documents: ‘+ Invitation and Instructions to Bidders which state the conditions relative to the bid invitation and submission, respectively; + Bid submitted by the successful bidder; and ‘© Labour agreements. 5 ‘ecDe 20 - 2008‘Normally, the Invitation and instctions to Bidders have served tcc purpose once the bids have teen received; therefore, the Conract Documents in SDSS GREENE Wien craic ent tse dunes os ned x pa Ut the Conrct Document they should be listed under ARTICLE A.3 ~ CONTRACT DOCUMENTS. This may include” such supplementary bid information as alist of subconacors,altertive pices, or iemized prices Hower, itis recommended tt special Senrition, progress schedules, and iabour agreement be stout i the appropiate section of the Spercatons, notin the Soplementary Conon. If, after submission of bids, the parties to the Contract agree to changes, this information, or reference to documents containing this information, should be included under Article A-3, ARTICLE A-4 CONTRACT PRICE As in all CCDC contract forms, in CCDC 2 ~ 2008, the Contract Price does not include Value Added Taxes. ARTICLE A-S PAYMENT {In paragraph 5.1, where lien legislation does not apply to the Place of the Work or where the len legislation governing the Place ofthe Work does not require a prescribed rate of holdback, fill in the applicable rate. Paragraph 5.3.1 Tome ne SP of be lencingtinton robe tna ny i, ‘emer rate of interest to apply on overdue accounts is stated as an annual rate to avoid the ication of Section 4 of the Federal Interest Act. Section 4 ofthat Act provides that, where js payable on a written or printed contract at a percentage for a period less than a year, ‘per annum is the maximum interest recoverable unless the contract contains an express tement ofthe annual rte ‘The intent of paragraph 5.3.2 isto apply the interest atthe rate and in the manner prescribed by paragrapi 5.3.1 inthe event that either party fails to make payments as they become due under the tems of setiement of any dispute. When interest is included in the final settlement of any Gispute, it is recommended that the terms of setlement clearly indicate that the settlement amount includes all interest so that paragraph 53.2 is satisfied ARTICLE A-6 RECEIPT OF AND ADDRESSES FOR NOTICES IN WRITING CCDC recognizes the delivery of Notice in Writing by regular post ina manner akin to the Ontario’s Rules of Civil Procedure which provide that a document is deemed to have been received by the party to whom the notice is addressed 5 calendar days after the date of mailing ‘ecpc 20-2008 9In the ease where one of the parties disappears, or absolutely refuses to take delivery of a registered letter or ofa letter delivered by courier or hand, the Ontario Rules also provide that a document is deemed to have been received by the party to whom itis addressed on the fifth day after its transmission by ordinary mail to the address supplied by this party. Recognizing the need to cope with such circumstances, CCDC also provides this method for sending Notices n Writing, which it believes the parties would use only asa last resort ‘A Notice in Writing may also be transmitted by facsimile or e-mail provided that during ‘transmission no indication of failure of receipt is communicated to the sender. EXECUTING THE CONTRACT Proper Contract execution or signing is essential to formalize the agreement reached between the parties. To avoid signing procedures which cause problems and to standardize procedures, the following procedure is recommended: ‘© the authorized representatives of both parties must sign and seal the Agreement portion ofthe Contract Documents i + in the absence of any special requirement by the Owner, individually securely bind the professionally sealed Specifications and Drawings; and © the autho ative for each party then should sign on each copy of the fough itis not necessary that every sheet be initialed, Sign three sets of Contract Documents in the manner suggested above; one set to be retained by the Owner, one to be retained by the Contractor, and one for the Consultant Each party should ensure that all Contract Documents are signed by the person authorized to sign on their behalf Execute the Contract as soon as possible after the award, CCDC recommends that all contracts be executed in the presence of the Oumer and the Contractor. Where this is not practical, the parties must ensure thatthe Contract Documents are fully executed and that each of the parties is provided with an executed set of the Contract Documents. 10 ccpe 20-2008© ‘THE DEFINITIONS ‘CCDC 22008 DEFINITIONS ‘The Definitions section of the CCDC 2 ~ 2008 contains those terms and phrases which carry a specific meaning when used in the Contract Documents. Defined words throughout the CCDC ‘Agreement, Definitions and General Conditions are captaized and show in italics. Bid and Contract Documents should consistently use these terms since they have a definite meaning and application under the contract, Other terms may have a different connotation, ‘The Definitions section in CCDC 2 ~ 2008 may be expanded by supplementary conditions to provide additional definitions to suit the particular needs of the Work, eg. tenant, special consultant, and government agency. Do not modify, nor delete, any of the specifie CCDC definitions, as they are used throughout the contract and any modification thereof will cause confusion, conflicts or misunderstandings. Abbreviations, technical terms, and references should be identified in the Specifications or the Drawings and not added as Definitions ccepe 20-2008 "‘THE GENERAL CONDITIONS ‘CCDC 2- 2008 “The General Conditions in CCDC 2~ 2008 set forth the specific responsibilities, obligations and Talis ofthe partes, a5 well asthe respective roles af the Owner, Conracior and Consultan ‘The General Conditions contemplate single construction contract for a specie Project. Huwover they may be vsed in multiple contracts forthe same Project. 1f » Project is to be contucted under multiple contracts, separete contracts should be awarded using the applicable CODE contract forms, all of which should have co-ordinated General Conditions. ‘In these cercstances, the Contract Documents must clearly define the limits of responsibilty foreach ‘Contractor performing Work on the Project. (CONTENT OF THE GENERAL CONDITIONS “The General Concitions of the Contract are standardized contractual provisions describing the Tights, responsibilities, and relationships ofthe Owner and Coniractor under the constuction oni ar: General Conditions bring a level of consistency to construction contracts. Contractors fidding « project will concentrate onthe adaptations tothe standard General Conditions without having to examine the entire document each time they bid. “Administrative, procedural and temporary facility requirements are properly excluded from the Coneral Conditions and are more appropriately located in Division # ~ General Requirements of the Specifications. Administrative processing, of Shop Drawings, details conceming, time Scheduling, clean-up, testing, temporary facilites and similar work are also typically handled in Division 1 ADAPTATION OF THE GENERAL CONDITIONS ‘General Conditions may not be all-inclusive and, therefore, the use of Supplementary Conditions may be necesstry to complete Quner-Contractor contracts. Changes to the General Conditions must be set out in a separate section of the General ‘Conditions called the ‘Supplementary Conditions’. Changes to the actual printed text of the General Conditions should not be made by crossing out and inserting text. Please note that ‘producing the text with the incorporated modifications included isa copyright infringement. ‘Raptations must be brought clearly and emphatically tothe attention ofthe bidders so that they aaarecily appreciate what is being changed. This will avoid misunderstandings and subsequent disputes. ‘supplementary Conditions must identify the particular CCDC contact form being modified. A aacevcat to this effect atthe beginning ofthe Supplementary Condition section wil serve this purpose. Supplementary Conditions may also be necessary to modify the relationships among the partes ‘Sign multiple prime construction contracts are awarded, when projects are fast-tracked, or when the basis for Conmactor’s compensation is not simply a stipulated price. | Supplementary ‘Conditions often include provisions relating to payments, retainage, insurance, and other matters ‘ofa contractual nature applicable tothe specific Project. 2 cope 20-2008eo COMMENTS ON SPECIFIC GENERAL CONDITIONS OF CCDC 2 - 2008 PART 1 GENERAL PROVISIONS GC 1.1 CONTRACT DOCUMENTS ‘This General Condition sets out the intent of the Contract Documents and the hierarchy of each type of document in the event of conflicts between them. Paragraph 1.1.7. Consultanis should carefully check thatthe Conéract Documents agree with the hierarchy of documents and the definitions of Specifications and Drewings. ‘CCDCAO ~ RULES FOR ‘ARBITRATION OF CONSTRUCTION DISPUTES and CCDC 41 INSURANCE REQUIREMENTS are considered part of the General Conditions within the hierarchy of Contract Documents. ‘The following is an example of amending GC 1.1 to give an order of priority to an addtional document Tn the GENERAL CONDITIONS secon of CCDC 2008 In GC 1.1 - CONTRACT DOCUMENTS, prngragh 1.1.7.1 ‘Add the following seaence: Document xx, dated Sepember 3, 2008, hs priority over material and ishing schedule” ‘atc ofthe above example nota recommendation af CCDC) Paragraph 1.1.8. Where a limited number of sets of Contract Documents will be issued to the ‘Contractor without cost, the number of sets to be provided should be stated as a Supplementary Condition along with the terms for obtaining additional sets. It is good practice that the information on the addenda be incorporated into the st of construction drawing. ‘The following is an example of amending the number of copies of documents the Contractor will receive free of charge and the cost for additional copies. Tn he GENERAL CONDITIONS secion of CCDC2 2008 Jn GC 1.1 CONTRACT DOCUMENTS, paragraph 1.8 Replace this pargraph by: LLB’ The Convair wil be supplied wih 20 sets ofthe Conraer Documents witout charg. [Adinal st shall be povided at cos of $50 per set of Speciation and oF 5 60 pet fetof Dring, (Wot Ths cote afte above example snot a econmendaton FCCDC) PART 2 ADMINISTRATION OF THE CONTRACT ‘These General Conditions define the role, authority and responsibilty of the Consultant as established inthe Consultan's separate agreement with the Owner. ecDc 20-2008 BGC2.1 AUTHORITY OF THE CONSULTANT ‘The Consultant is not a party to the Contract between the Owner and Contractor, as such, there {sno contractual relationship between the Contractor and the Consultant GC 2.2 ROLE OF THE CONSULTANT ‘This General Condition describes the role ofthe Consultant. When the Consultant's services or responsibilities defined in the Owner-Consuliant Agreement differ from those listed in CCDC 2 = 2008 such differences in responsibilities or services, as stated in the Owner-Consultant ‘Agreement, must be identified in a Supplementary Condition; compatibility is essential ‘The following is an example of amending GC 2.2 to let the Contractor know what additional responsibilities or services the Owner has assigned to the Consultan: { inthe GENERAT CONDITIONS secion of CCDG2 2008 (GC22- ROLE OF THE CONSULTANT, paragraph 223 Replce thi paragraph by: 223 The Conon wil provide athe Place of the Work a Project epesenive oasis in ying out the. Contlton’sresponsiities, The Projet representative will be | ‘tioned ate st, aun ofc provided by the Conroctr, ad wl be responsible for | ‘sisting the Conan inthe administration ofthe Contract. The Proje repeeenaive ‘ill perfor. (camp ith addtional tak or respon axsgned oD Project ative and pect a mations of autor ‘Wie The cota ofthe above example sot econmendaton af CCDC) Paragraph 2.2.4. In accordance with GCS.3 ~ PROGRESS PAYMENT, the consultant is requited to promptly inform the Owner ofthe date thatthe Consultant received the Contractor's payment application, This ensures that the Owner is aware of the responsibility to make a payment within the next 20 calendar days Paragraph 2.2.10, It is good practice for the Consultant to inform both the Owner and the Contractor ofthe anticipated time that will be necessary to make an interpretation or finding, Paragraph 2.2.13. The Consultant and the Contractor should establish dates when the ‘Consultant isto supply the Contractor with certain Supplemental Insructions, such as the colour finishing schedule and the keying schedule. GC 2.3 REVIEW AND INSPECTION OF THE WORK Paragraphs 2.3.6 and 23,7. These clauses provide a default position related to testing, inspections, and the provision of material and samples for testing. The intent of this default position isto require thatthe Contract Documents explicitly identity those tests, inspections and sampling requirements thet are to be paid by the Contractor. ‘Some examples include requiring the Contractor to sample and test concrete for compliance with Ses petonnmce md eg cate ano pov sams of Prt fr comptes Sn 1“ cco 20-2008“hn he fh cr ni tt apt ne tt eof © te Puce ofte ors to cover eaters of varus eoboris bing uric Some Staples cade eginay iapestons by bung auortcn cect perton of foaled Aataieg Coumace Means conghen hapaciaag sad sorts Compliance of comincton methodologies PART 3 EXECUTION OF THE WORK GC3.2 CONSTRUCTION BY OWNER OR OTHER CONTRACTORS ‘When the Owner awards more than one contract forthe construction ofthe Projet or performs part of the Wark required for the Project using the Owner's own forees, the obligations of the (Owner and Contractor ae identified in the provisions of GC 3.2 Should the Owner elect to perform work using the Owner’s own labour forces on the Project, the Contract Documents should contemplate such circumstances to avoid jurisdictional disputes and 23. Without identifying the requirements in the Contract Documents, the ‘only obligated to cooperate in the review of schedules and identify deficiencies that affect the Work. (ERO ati eT St a GC38 LABOUR AND PRODUCTS GC 39 DOCUMENTS AT THE SITE, If there is @ need for other documents o reference material to be available atthe sit, these shouldbe indicated in Division I ofthe Specifications. ld the Owner or Consultant require thatthe Contractor keep a record of deviations from the tract Documents in the actual construction of the Work, these should also be outlined in vision 1 of the Specifications GC 3.10 SHOP DRAWINGS Should the Consultant's or Owner's requirements call for a significant deviation from the ‘manner of processing Shop Drawings outlined in this General Condition, the process should be @ —_cabeetin ivisin 1 ore Speyteaons coe 20-2008 15PART 4 ALLOWANCES GC 4.1 CASH ALLOWANCES Paragraph 4.1.1. Where precise details of certain portions ofthe Work are unknown atthe time ‘of calling bids, the bidders may be required to include a cash allowance in the bid price. 14.1.4. When the actual cost exceeds the specified cash allowance, the excess amount to be adjusted to cover increased overhead and profit fr the Contractor. This adjustment is clude amounts for overhead and profit as set out inthe Contract Documents. No adjustment arnde for decreased overhead and profit where the actual cost i less than the specified cash “The Contract Documents shal carefully define the scope of work and the method of determining ents associated with each of the specified cash allowances. This is to ensure that no overlap Secure between the specified work and the eash allowance work. Cash allowances do not fnclude any Value Added Taxes payable by the Owner to the Contractor. ‘Cash allowances may cover for example: Diirng the course ofthe Work, when the actual cost of each specified cash allowance becomes ‘As soon as possible after award ofthe Contract, the parties should review the nature and scope teach cash allowance so that the Contractor ean incorporate the work ofthe cash allowance in ‘timely and orderly manner. GC 4.2 CONTINGENCY ALLOWANCE, Contingency Allowance, when specified, is the fixed amount specified in the Comract venis which the Contractor carries to cover increases in cost for changes in the Work. As ce changes are not defined, the Contractor cannot be expected to know, in advance, the Snead ost requirements. Therefore, work performed under # contingency allowance is fuated as set out in GC 6.2 - CHANGE ORDER or GC 6.3 ~ CHANGE DIRECTIVE (see sassion under GC 6.2 and GC 6.3). 16 ccc0c 20-2008PARTS PAYMENT GC 5.1 FINANCING INFORMATION REQUIRED OF THE OWNER ‘The Contractor is entitled to ask the Owner to fumish reasonable evidence that financial been. fulfill the Owner's obligations under the Contract ME )RMATION provides a standard format for his information. The Ovner is obliged, Since the Contractor's decision to accept the Owner's information is a business sion, the Consultan is not called upon to make findings (See GC 2.2.7) under this specific ‘General Condition. GC 52. APPLICATIONS FOR PROGRESS PAYMENT. For an example of an application for payment form, refer to CCDC 24 ~ A Guide to Model Forms and Support Documents. ‘The Contractor should advise all Subcontractors and Suppliers of any payment application requirements including the time by which they are to submit their progress billings s0 thatthe Contractor may include them in the Contractor's application for progress payment ‘Subcontractors should be requested to submit their progress billings to the Contractor in the same form and detail as the Contractor's application for payment. C53 PROGRESS PAYMENT ‘Upon application by the Contractor, the Consultant issues cetifictes for payment to the Owner. For an example of a progress payment certificate form, refer to CCDC 24 ~ A GUIDE TO MODEL FORMS AND SUPPORT DOCUMENTS. ‘ecpe 20-2008 0‘The Consultant must promptly inform the Owner of the date of receipt of the Contractor's application for payment and remind the Orne of the Owners responsibility for payment tothe Contractor. The consultant should also advise the Owner of the approximate amount of the progress payment at this time. Ifthe Consultant determines tht the amount claimed is not Properly due and cannot approve the application as presented, the Consultant must immediatly Euvise the Contractor and endeavour to clarify the differences, | fail GC 54 SUBSTANTIAL PERFORMANCE OF THE WORK Specific administration procedures conceming submittals and close-out procedures to achieve ‘Substantial Performance ofthe Work need to be specified inthe Contract Documents. rn determining if Substantial Performance of the Work has been achieved, the Consultant ‘actin accordance with the lien legislation prevailing atthe Place ofthe Work. GC55 PAYMENT OF HOLDBACK UPON SUBSTANTIAL PERFORMANCE OF THE WORK ‘Where the expression *holdback amount” is used in CCDC 2 ~ 2008, it means the statutory holdback required by the lien legislation and not, for example, a deficiency holdback. Where Aech legislation does not apply, then ‘holdback amount’ means the holdback required in sreirdasce with such other legislation, industry practice, or such other provisions which are ‘agreed to between the parties, ‘The CCDC 9A ~ Statutory Declaration form must have a copyright seal applied to each and every completed form. PART 6 CHANGES IN THE WORK GC 6.1 OWNER’S RIGHT TO MAKE CHANGES Changes may be required because of a change in the Owner's requirements, site conditions, ‘emergencies, orn government regulations. [Chinges in the Work may affect Contract Price, Contract Time, or bot. ‘Any change in the Work should be covered under a Change Order ot a Change Directive or, if ‘such isnot achievable, by separate contract or purchase order. “The basic principles stated below govern the change tothe Work process in CCDC 2 2008: «© The Contractor shall not perform any changes in the Work without writen authorization from the Owner; 6 ‘ecpe 20-2008‘© Two methods are provided in CCDC 2 ~ 2008 for the Owner to supply this writen authorization: the Change Order and the Change Directive; © A Change Directive can only be used to order changes that are within the general scope of the Contract Documents, ‘+ A Change Order may be used for changes that are within or outside the general scope of the Contract Documents; ‘©The Contractor is under no obligation to carry out a change inthe Work which is outside the + Documents; an rack ao. Procedures for substitutions are not addressed by CCDC 2 ~ 2008. Therefore, unless provision is a a ene Spain anges near the end of the Work that would postpone the completion date and create hase orders, not by change directives. 6.2 CHANGE ORDER ‘The Change Order is used when the Owner and the Contractor agree on a change in alte SHES stove alo sere fo cout he Courecor’s agent peti change. When a change is contemplated, pa Early as Gehange. The proposed change notice may be given using the standard form the “Proposed ‘Change’ that is provided in CCDC 24 — A GUIDE TO MODEL FORMS AND SUPPORT DOCUMENTS. ‘The Contractor, through the Consultant, promptly provides a submission to the Ouner seserit change on Contract Price and Contract Ti "The Contractor should state a reasonable submission will remain open for evaluation and acceptance. Ifany work affected by the proposed change isin progress or is to start shortly, the Over must ‘ecDc 20-2008‘The Contractor may propose a change in Contract Price by any method, including Should the ‘proposed lump sum price be unacceptable r, then the parties may negotiate to reach agreement on an acceptable amount. * Unit prices stated in the Contract or subsequently agreed upon. Where unit prices are required for adjusting the Contract Price, they should be as specific as possible, include ‘overhead and profit, and differentiate between units added and units deducted. For example, concrete in place should specify the locaton in the building, the type of element and strength ‘The Consultant analyzes the information provided in the Contractor's submission; further Aiscussion and negotiation may be required to come to a decision to accept the change in the Work and the change in the Contract Price and Contract Time. When there is agreement Tearente Orme tnd Conran ecg, lng ysis ene to the Contrac is prepared by the Consultan andi signed by the Owhr and the Contactor, GC 63 CHANGE DIRECTIVE ‘An Owner may issue a Change Directive in circumstances where an Owner requires a change in the Work that is within the general scope ofthe Contract Documents and * the change is urgently required or it would not be expedient to attempt to reach agreement on. the method of the adjustment t0 the Contract Price ot Contract Time prior to. its ‘commencement, or * there has been a failure ofthe parties to agree on the method of adjustment to the Contract Time. Owner and Contractor should agree on the Contractor's percentage fee for Change irectives as early as possible. Tis fee should reflec current industy practice. ‘The conditions under which a Change Directive would be used anticipate both addtional ‘expenditures and potential savings tothe Contractor for proposed changes in the Work. Where additional expenditures ate incurred, the valuation would include a provision for a percentage fee to cover the Contractor's overhead and profit. However, where savings are incurred, the erect ‘would be the actual cost savings to the Contractor, without a deduction for overhead and profit After the Change Directive i issued, both pares should continue efforts to achieve aprement ss sont pub the asin oth Conc 1 Senraor aca 0 ccc 20-2008"pean home Doe Bel ano treba Refer to CCDC 24 ~ A GUIDE TO MODEL FORMS AND SUPPORT DOCUMENTS for standard forms which can be used fora Proposed Change, Change Order or Change Directive. GC 64 CONCEALED OR UNKNOWN CONDITIONS During the course ofthe Work, either ofthe contracting partes may come across certain physical conditions at the Place of the Work that they believe are not those anticipated at the time of signing the Agreement. This General Condition establishes the methodology to be used when this situation occurs. It sets out the time limits, procedures and actions related tothe notification ofall parties and the investigation of the situation. It also establishes the steps to be taken after the Consultant makes a finding related to the investigation aap gta ae Paragraph 6.4.3 obligates the Contractor to evaluate the Work prior to bid closing in order to determine the conditions that may affect the Work. ee GC 65 DELAYS ‘This General Condition describes those circumstances in which the Contract Time may be ‘extended, and the Contract Price adjusted, asthe result of delays graph 6.5.3.3 specifies that abnormally adverse weather is a basis for an extension to the mtraet Time. The intent is to equitably allocate risk. The Contractor is expected to assume her-related risk arising from “normal” weather conditions and the Owner assumes weather- ated risk arising from “abnormally adverse” weather condition, ‘bnormally adverse conditions might include extended heavy rainfall ice or snow storms, high ‘winds, ec, that fall outside the normally expected weather pattems atthe Place ofthe Work for the propased time of construction, Ifthe Owner desires to define specific weather conditions for 1 specific Project that wll not be considered abnormal, then a Supplementary Condition would be necessary. Examples might include defining the acceptable parameters of: © Wes hour rainfalls © the depth of snowfall overa specific time period; or ‘© Wd speed and anticipated duration, Paragraph 6.5.3. There may be instances where the extension in the Contract Time may be longer than the period of the event causing the delay. For example, additional time may be required to re-establish the workforce and equipment orto work under more difficult conditions. raph 6.5.3.4 explicitly excludes circumstances resulting from default or breach of Contract the Contractor as basis for an extension of time. An example of such a circumstance would the late delivery of a Product for a cause beyond the Contractor's control, where the ntractor could still be held responsible for the late delivery ifthe Contractor had originally ed to order the Product ina timely manner. ‘ecDe 20-2008 aragraphs 6.54 and 6.5.5. The Consultant may recommend a Contract Tine extension where ‘Zonactor experiences conditions that could not reasonably have been contemplated in ting the completion date of the Work. The Contracor should submit a detailed report in port of any claim for extension. Paragraph 63.5. Where no schedule is made under paragraph 2.213, claims for delay ve to fallue 1 produce Supplemental Instructions on a timely basis will not be entertained until 10 Working Days after demand for such instructions has been made. Therefore, the Contractor thould toake demands for Supplemental Instructions, such as the colour finishing ot keying Schedule, as early as possible in order to avoid delays. Where a change or extension of the Contract Time is agreed upon, such extension must be confirmed in writing by a Change Order. ‘The Owner should be careful thet the award of separate contracts does not unexpectedly cause delays. ‘Contractor must give the Consultant « Notice in Writing stating the eause of delays within ‘Working Days after the commencement of the delay. ‘The Consultant then recommends ance or ejection of claims for delay promptly and in writing, Jays should be properly recorded, supported and promply analyzed so that responsibility and pensation, if any, can be established. GC 72 ~ CONTRACTOR'S RIGHT TO SUSPEND T WORK OR TERMINATE THE CONTRACT provides that the Contractor has aright 19 inate the Contract in eixcumstances where delays caused by Order of the Court or other Iie authority, which are not the fault of the Contractor, extend beyond 20 working days. GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE “This General Condition is intended to addeess the procedural matters related to the making of a claim for additional payment of any kind. It must be recognized that in this contract, a ‘claim’ and a ‘dispute’ are not the same. For the purposes of CCDC 2 ~ 2008, claim isa demand fo financial consideration by either party, ‘Examples of claim include: ‘A claim may be recognized by the party receiving the claim and consequently may not lead to = dispute A Gipute only occurs when alam’ by one pat i 'ssputd’ by the other party. The “laums process precedes and is seperate from the dispute resolution process dealt with in Part 8 ~ DISPUTE RESOLUTION. 2 ‘ecpe 20-2008An important spect of this general conto is tht all tes relied to claims sal be given © tndects upon ina uimay mn, This eases tata the event or sees of events giving re to te cla ovr, toh pares ae able to take steps to mitigate the effect of te clam an ate not having to eal itt the impos ofthe cre aerate tsa inporant that the Constant ake a rom finding to recive acai, Should the claim not be eolved to the tetaticton of all pre involved i eabes the pariea to immediatly inne the opts soliton proces claim must be in accordance with GC12.2.6. All claims related rights and obligations sre mutual, i.e, they apply equally to both the ‘Contractor and Owner in respect of claims initiated by ether party. PART 7 DEFAULT NOTICE ons taken under this section may affect insurance coverage, bonding and indemnification his. Given the importance of this General Condition, the Owner and the Contractor should sult their legal, financial, surety and insurance advisors on all matters before action is taken fer ths section. GC 7. OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR'S RIGHT TO CONTINUE WITH THE WORK, OR € ‘TERMINATE THE CONTRACT ‘This provision contemplates the possibility that the Contractor may become insolvent, be declared bankrupt, or may not be executing the Work propery. Paragraph 71.2 requires, as a condition precedent to any default notice being given by the ‘Owner, that the Consultant has furnished a written statement to the parties stating that sufficient cause does exist to justify such action by the Owner. The nature of the default should be clearly identified. Paragraph 7.1.5.1 clarifies that the Owner will not be able to take possession of equipment that is ‘owned and leased by third parties. GC 7.2 CONTRACTOR'S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT ‘This provision deals wit the circumstances where the Contractor may terminate the Contract in the event that the Owner is declared bankrupt or when the Work is suspended or otherwise Em ae aaa eae ener fet Comeesanton In addition, this provision also entitles the Contractor to stop the Work or to terminate the nr er i Ora i ef ay of he cna ios wa a para cece 20-2008 B[Note thatthe failure of the Over to provide financing information required of the Owner under GC 5.1 - FINANCING INFORMATION REQUIRED OF THE OWNER is exempted from the Consultant's confirmation that sufficient cause exists. PART 8 DISPUTE RESOLUTION “The rules for mediation of construction disputes in CCDC 2 ~ 2008 are set out in CCDC 40 — RULES OR MEDIATION AND ARBITRATION OF CONSTRUCTION DISPUTES in effect at time of bid closing. Should the industry introduce changes to these rules, the CCDC will modify CCDC 40 accordingly without having to reintroduce a revised version of the contract form, The most current version of CCDC 40 is available on the CCDC web site (www.cede.org). Dispute Resolution sets out, very specifically, the method for the setlement of disputes under CCDC 2 ~ 2008. It recognizes the need to find alternatives to the costly and slow adversarial Iitigeion process and, therefore, incorporates the Alterate Dispute Resolution (ADR) concepts of negotiation, mediation, and arbitration in a manner that encourages the speedy, inexpensive ‘and voluntary resolution of construction disputes. GC 81 AUTHORITY OF THE CONSULTANT In the first instance, claims, differences ot other matters relating to the performance of the Work ot the interpretation of the Contract Documents are referred tothe Consultant in waiting for the ‘Consultant’ finding or determination Disputes ative when differences between the Oumer and the Contractor regarding. the pecformance of the Contract cannot be resolved in the frst instance by a finding of the ‘Consultant, as provided in paragraph 2.2.7, Paragraph 8.1.2 clarifies under the Contract are to be dealt within the same three stages ph 8.13 GC83 RETENTION OF RIGHTS Paragraph 83.2. Since Owners and Contractors tnust comply with legislation in each Juradition in order to continue to preserve ther lien rights andthe right vo goto arbitration, they ‘thould be aware of the need to seek the advice of legal counsel in these circumstances. PART 9 PROTECTION OF PERSONS AND PROPERTY GC9.1 PROTECTION OF WORK AND PROPERTY “This General Condition emphasizes the Contractor's responsibility for taking. precautionary ‘measures to protect the Work, the Ovmer's property and adjacent property from all damage and injury arising out ofthe performance of the Comtact. 4 cece 20-2008‘The obligation to determine the locaton of buried utilities and structures includes the area, Examples of this would include utility access chambers or manholes, overhead light fixtures without obvious overhead power or control Lines, or culverts beneath roadbed. GC 92 TOXIC AND HAZARDOUS SUBSTANCES For the purposes ofthis Conzracr, toxic and hazardous substances ae those materials defined by applicable legislation atthe Place of the Work. Paragraph 9.2.4. The Owner has a right to properly store the toxic or hazardous substances at the Place of the Work in accordance with applicable legislation, Paragraphs 9.2.5 to 9.2.8. These clauses outline the responsibilities of the parties and the procedures in the event thatthe presence of any toxic and hazardous material is observed or is reasonably suspected at the Place of the Work. Should the Contractor or anyone for whom the Contractor is responsible bring toxic or hazardous substances onto the Place of the Work, i is ‘the Contractor's responsibility to safely remove and dispose of the toxi or hazardous substance. Moulds including toxic moulds are to be dealt with under GC 9.5 ~ MOULD. GC 94 CONSTRUCTION SAFETY ‘This General Condition establishes that the Contractor is solely responsible for construction safety atthe Place of the Work end for initiating, maintaining and supervising all safety precautions and ‘programs. However, that responsiblity may differ where the Owner engages other contractors under separate contracts or employs its own forces to perform work pursuant to GC 3.2 — ‘CONSTRUCTION BY OWNER OR OTHER CONTRACTORS. The Over and Consultant also ‘must abide by safety regulations at the site. The Owner must be aware of, and follow, any legislation pertaining to the Owner's responsiblity for safety GC 95 MOULD ‘There is litle applicable legislation similar to those for Toxic and Hazardous Substances to articulate the roles and responsibilities of the Owner, Consultant and the Contractor at the Place Of the Work regarding the presence of mould. Regulators have issued alerts and bulletins regarding health and safety standards making it the employer's responsibility to protect their ‘workers. Due to insufficient knowledge about the short and long term affects of mould, it is presently impossible to determine safe mould exposure thresholds; as such, the scientific and ‘health communities agree that mould should be removed. ‘This General Condition outlines the responsibilities of the parties and the procedures to apply in the event thatthe presence of mould is observed or is reasonably suspected at the Place of the Work, whether the mould is found to be toxic or not ‘The expertise required to determine the nature and cause ofthe mould is not the responsibility of the Consultant. An independent expert is required when called for under the contract. This ‘General Condition clearly defines when and how the independent expert will be engaged. ‘cc0c 20-2008 2sWhen mould is observed at the Place ofthe Work, iis incumbent upon the Contractor to take all reasonable steps to prevent injury, sickness, death and damage tothe propery; this may include stopping the Work, if necessary If the Owner and Contractor mutually or through the results of the independent expen's investigation agree on the nature and cause of the mould, then the party responsible, a their own expense, shal: ———— Paragraph 95.2.3. If the Conmractor agrees that the presence of mould was caused by the Contractor's operations under the Contract, a Change Order should be issued to reimburse the (Ovmer for reasonable costs forthe independent expert Paragraph 9.5.3. If the Owner agrees that the presence of mould was not caused by the Contractor's operations under the Contract, a Change Order should be issued to reimburse the Contractor for reasonable costs and to extend the Contract Time. The Consultant's recommendation under paragraph 9.5.3.3 should also be made in consultation with the expert referred to in GC 9.5.1.3 Paragraph 9.54. Should the Oumer disagree with the findings ofthe independent exper, the (Over must proceed withthe work stated in paragraph 953.1. Similarly, should the Contractor disaaree with the findings ofthe independent expert, the Conracor must proceed with the work stated in paragraph 9.52.1. The rights of both the Owner andthe Conractor are nt prejudiced Should they proceed with this work. The parties can then attempt to resolve their dispute by following Part DISPUTE RESOLUTION. 1tis good practice that the Over take all easonable steps prior to the commencement of the Work wo determine whether or not mould is present atthe Place ofthe Work and to provide both the Consultant and the Contracor witha written list specifying the presence of mould, There i an expectation thatthe remediation ofthe mould be completed either before the Wark begins or as partof the Work For more information on mould, refer to CCA 82 ~ MOULD GUIDELINES FOR THE CANADIAN CONSTRUCTION INDUSTRY at www eea-ace.com. PART 10 GOVERNING REGULATIONS. GC 10.1 TAXES AND DUTIES When the Project qualifies for sales tax and/or customs duty refunds or exemptions, Supplementary Condition should be issued amending this General Condition to establish the procedure. This should be established prior to bid call and should be included with the Bid Documents. ‘The text ofthe Supplementary Condition should clearly identify who pays the tax and duty, who applies for the refund, what formula or method is to be used, and who provides the information and data required for the refund application or exemption certificate, 2% ccepe 20-2008Since government procedures governing the refund or exemption of taxes and duties may vary, it is recommended that the appropriate procedures be predetermined in order to provide both partis tothe Contract with clear and precise information for making such applications. When certain Products are exempt from sales tax, tate in a Supplementary Condition who the purchasing authority will be and identify the forms tobe used ‘A question often arises when an announced tax change is not to take effect until aftr bid closing, Dut will take effect duting the course of the Coniract. It is incumbent on the Owner and the Consultant to clarify for the prospective bidders how this situation is to be handled in the preparation of bids. GC 102 LAWS, NOTICES, PERMITS, AND FEES to the ownership of land and the approval of designs are normally the Owner's responsibility. The Contractor should not be required to apply or pay for permits relating to the planning, zoning, deed covenant, development charges, or other related regulations that are not germane tothe actual requirements for construction Paragraph 10.2.2 and 10.2.3. To avoid misunderstandings about the payment of certain fees, the Contract Documents should state which fees are tobe paid by the Contractor and are, therefore, ‘included in the bid price. This is especially important with regards to building permit and utility service fees PART 11 INSURANCE AND CONTRACT SECURITY GC 111 INSURANCE Prior to signing the Contract, preferably before the bidding phase, itis important for the parties to conduct a detailed review of the insurance requirements for the Project with insurance professionals that are qualified to provide constuction insurance. The purpose of the review should be to identify the types of coverage that may be required to satisfactorily protect the various partes’ interests in the work. Specialized coverages may be necessary 0 adequately insure additional risks presented by some projects, Users of CCDC 2 ~ 2008 should also review with insurance professionals risks that are excluded from standard construction insurance policies, paying particular attention to how these risks may ‘impact the Project in question. For example, asbestos may be of litle or no concer in the case of stand-alone new construction that will contain none of this material, However, the location of an otherwise “low risk” project in proximity to what insures perceive to be a ‘terrorism target” ‘may render terrorism coverage unavailable or very costly. A risk management strategy that addresses insurable and non-insurable risks prior to bidding is an important part of the process that can assure the achievement of the financial goals of the Project. cc0e 20-2008 7‘The insurances specified inthis General Condition are considered tobe recommended minimum Teanirements for most projets, The insurance limits and coverages ae set out in document Gee 41 _ CCDC INSURANCE REQUIREMENTS in effect at time of bid closing. Should the GSoranee market introduce changes to the insurance limits and coverages, the CCDC will inodlfy CCDC 41 accordingly without having to reintroduce a revised version of the contract ‘Rom The most curent version of CCDC 41 is available onthe CCDC web site (www.cede.or) JR copy of the latest revision at time of bid closing should be downloaded from the CCDC web site and attached tothe contract for ease of reference. Paragraph 11.114, ‘Broad form’ property insurance is another term for ‘all risk property aanaareee, For most projects, insurance coverages are to be maintained until 10 days after the ate of Substantial Performance of the Work. Owners must have their insurance polices in place qtithe time of Substantial Performance of the Work, or such other time stipulated under paragraph L1.1.1.4.2 oF 1.11.43. Paragraph 11.13. The party responsible forthe los is responsible forthe deductible amount. Should there be proportional responsibility between the partes, the responsibility for the deductible amount is calculated accordingly. Paragraphs 11.1.6 and 11.1.7 cover the remote possibility that the insurance provisions in CCDC ‘A change some time between the bid closing period and the signing of the Contract oF the enswal period of the Contractors insurance policy, These changes must be addressed promptly by Change Order to avoid the risk of not being adequately insured If the characteristics of the Project call for revisions to the insurance limits and coverages Specified in CCDC 41 of to any of the insurance requirements in CCDC 2 2008, 2 supplementary condition must be prepared accordingly For additional information on insurance matters see CCDC 21 ~ A GUIDE TO CONSTRUCTION INSURANCE and related CCDC Bulletins (www.code.or8). GC 11.2 CONTRACT SECURITY Contract security can be inthe form of a cash security, leter of credit, certified cheque or surety bond. For a detailed explanation of surety and the approved CCDC bond forms see CCDC 22 = A GUIDE TO CONSTRUCTION SURETY BONDS and related CCDC Bulletins (www.cede.or8). PART 12 INDEMNIFICATION, WAIVER OF CLAIMS AND WARRANTY GC 12.1 INDEMNIFICATION Indemnification is provision in @ contract in which a party undertakes to be financially ‘eaponsible for specified types of damages, claims, of losses for which the other party may Be Toul or may sufer, Through this provision the contracting parties agree who will assume liability for losses that arse from the performance ofthe contract and the limits ofthat Fabilty 28 ‘ecpe 20-2008‘The indemnification clauses in CCDC 2 ~ 2008 are designed to allocate risk to the contracting party who isin the best position to control and manage that risk. CCDC 2 ~ 2008 establishes the concept of mutual indemnification between the parties. The indemnification provisions render ‘each party responsible for its own negligence or breach ofthe terms and conditions. CCDC 2 ~ 2008 has introduced limits of liability for claims for indemnity between the parties as well as claims for indemnity by third parties other than those related to bodily injury and property damage. CCDC 2 ~ 2008 recognizes that the Owner determines the extent of the Owner's own exposure to risk and specifies the type and amount of insurance coverage required to be provided by the Contractor based upon this assessment. In order to limit the risk undertaken by the parties under the agreement and their efforts to indemnify against insurable direct claims in this General Condition, that obligation has been limited to the dollar value of the insurance specified by the Owner. The Owner can always provide further protection by specifying that the Contractor purchase additional insurance limits. ‘The rsks imposed upon a Contractor by the indemnification clause are typically passed on to the insurance companies through the purchase of insurance policies specified in the insurance provisions, However, insurance policies include exclusions such as mould and pollution in their standard commercial general liability policies. Consequently, the net result is not an absolute transfer ofthe risk to the insurance companies. Owners and Contractors need to be aware that this may result in uninsurable payouts that have the potential to cause insolvency of the Contractor, resulting in serious financial losses for both partes. ‘Ouners and Contractors must be made aware that modifying the indemnification clause may pose uninsured risks. Refer to CCDC Bulletin 25 (www.cedcorg fora detailed explanation. A table summarising the various indemnification limits of CCDC 2 ~ 2008 follows. The parties ‘will indemnify and hold each other harmless against the stated claims, provided that such claims arise out of negligent acts or omissions or a failure of either party to fulfil its obligations under the terms and conditions of the Contract, cep 20-2008 29‘Summary ofthe indemnification limits for CCDC 2 ~ 2008; GENERAL — With the exception of mould, patent fees an 1é an actual or alleged lack of, or defect in, tile to the Place of the Work, all claims must be caused by negligent acts, negligent fomissions oF failure to fulfil the Contract, Ovner/Comractor Indemnity and nod | Natur of | nnetaryHtaton “Time imitation harmless ‘Gene abi surance Tn Diret Insured | forone occurence as refered io in between the partis |clsims | CCDC4T ineffest st the tine of bid closing ang Stonerof 6 fom party claims | yingneg | THESE ofthe Contract Price the date of Serta hove | UE! | ce'2,000000,butinnoevent—| Subsontel Felaing to body ‘ener han S300 000, Performance ofthe injury or property Workand wy damage Teta State of the provine or tesued tertiary ofthe Place ‘Third-party caims [claims | Noni Ge Wark relating to bolly ory or property damage Uninsured claims | NoLimit “Toriarardous | Insured Substances Uninsured] No imi No time imitation isis x0 ecpc 20-2008EXCEPTIONS a Ter sar alleged design a [oe in executing ‘Contractor | N° limit ‘No time limitation ae | can wi Since the Consultant isnot a patty to the Contract, indemnification ofthe Consultant should be reviewed under the Consultant's agreement with the Owner. GC 12.2 WAIVER OF CLAIMS ‘This General Condition establishes the concept of mutual waivers of claim. The waiver period limit for both the Owner and the Contractor occurs atthe same time, ‘The timing of the waiver is related to the expiry of the lien period, Under paragraphs 12.2.1 and 12.23 the partes have until 5 days prior tothe expiry of the lien period to signify their intention to claim. This brings a timely closure to both parties’ intention to claim for issues occurring prior to the date of Substantial Performance of the Work, with the exception of those circumstances stated in paragraphs 122.1, 12.22, 12.23, 12.24 and 12.2.5. This focuses both the Owner's and the Coniractor’s early attention to claims for matters of significance; thus, reducing the potential for either party to ‘ambush’ the other party with late claims. In paragraphs 12.2.1 and 12.23, it is important to understand when, under the lien legislation applicable to the Place of the Work, the Contractor's lien expires, as this date fixes the date of a party's waiver. Paragraph 12.2.2. The Contractor waives and releases the Owner from al claims resulting from tacts or omissions occurring after the date of Substantial Performance of the Work except for indemnification for claims advanced against the Contractor by third partes; claims related to toxic and hazardous substances; infringement of e patent, or an allegation thereof; lack of, or defect i, ttle; and claims for which a Notice n Writing of claim has been received by the Owner. from the Contractor within 395 calendar days following the date of Substantial Performance of | the Work. Claims that have been given in writing and that satisfy paragraph 12.2.6 are not ‘waived. ecDC 20-2008 3In paragraph 12.2.4, the Owner waives and releases the Conractor for claims for substantial defects and deficiencies arising out of the Contractor's actions where there is no written notice bf claim by the Owner within 6 years from the date of Substantial Performance of the Work, ot Such shorter period as may be prescribed in any limitation statute applicable to the Place of the Work, Claims that have been given in writing and that satisfy paragraph 12.2.6 are not waived. Paragraph 12.2.5. The Owner waives and releases the Contractor from al claims resulting from tow or omissions which occur after the date of Substantial Performance of the Work except for {ndennification for claims advanced against the Owner by third_ partes, claims related co toxic and hazardous substances end those arising under GC 12.3 ~ WARRANTY and claims for which Notice in Writing has been received by the Contractor from the Owner within 395 calendar days following the date of Substantial Performance of the Work. Claims that have been given in ‘writing and that satisfy paragraph 12.2.6 are not waived. Paragraph 12.2.7. The requirement fora detailed account of the amount claimed is intended to discourage frivolous claims by either party. GC 123 WARRANTY ‘The warranty period specified in CCDC 2 ~ 2008 is one year from the date of Substantial Performance of the Work or such other periods specified in the Contract Documents for certain Products or Work |Warrantis for portions ofthe Work and Products that specify longer periods are of two types = warranties covering the entire installation as well as the Products (e- roofing or glazing systems), and «+ warranties covering replacement ofthe Product. “The Contract Documents will describe the type of warranty. ‘Warranties for replacement of Products offered by the Product manufacturer usually only cover the replacement of the Product and not transportation, removal of the failed Produer, feinstallation ofits replacement, nor any associated labour costs. These Prodiet warranties will ‘be obtained by the Contractor and are issued tothe benefit of Owner. ‘Owners und Consultants should be aware when specifying warranties for periods longer than the ‘One-year period defined in paragraph 12.3.1, that, in most eases, standard Performance Bonds do ot cover guarantees which extend beyond two years and supplementary bonding is generally not available ‘The CCDC Bulletins 17 and 18 (orww.cede.org) provide additional information on construction 2 ‘ecpe 20-2008NOTICE TO USERS OF CCDC 22008, GOVERNED BY THE CIVIL CODE OF QUEBEC 1, Article 21 of the Definitions included in CCDC 2 - 2008 state that the definition of ‘Substantial Performance of the Work is as defined in the lien legislation applicable to the Place of the Work. However, in Quebec, as no definition of Substantial Performance of the Work exists in the Civil Code, substantial performance will occur, by virtue ofthe alternative definition provided in Amticle 21, when the Wark is ready for use or is being used for the ‘purpose intended and is so certified by the Consultant, ‘With respect to the issue of legal hypothers ("liens" in other provinces) in Quebec, one must refer to the completion of the Work, as defined in Article 2110 of the Civil Code as: by virtue of Article 2727 of the Civil Code, it is from this event thatthe time limits concerning legal hypothees begin. 2, CCDC 2 ~ 2008 invites the individuals signing the Agreement (on page 5) to affix a corporate seal if required. In Quebec, the seal isnot mandatory. 53, Paragraph 2.2.6 of GC 2.2 may be considered to be releasing the Consultant from his or het responsiblity; however, one cannot restrict the public order responsibility the Consultant assumes by virtue of Article 2118 ofthe Civil Code of Quebec. 4, In Quebec, notwithstanding the provisions of paragraph 2.3.1 of GC 23, the Consultant is agovemed by Article 2117 ofthe Civil Code of Quebec, which hols thatthe client (and onsequendy his Consultant) must not nertere with the work. 5, InGC 12.2.1 and GC 12.23 expiry ofthe period within which a Contractor must register @ legal hypothee shouldbe considered synonymous with expiry ofthe lien period coc 0-208 »FURTHER REFERENCES Reference to the following additional CCDC guides and related documents is highly recommended: ccDc 9A/9B ccpc2! cepe 22 cecpe 23 cence 24 cep 40 cope 4 Statutory Declarations A Guide to Construction Insurance ‘A Guide to Construction Surety Bonds A Guide to Calling Bids and Awarding Contracts ‘A Guide to Model Forms and Support Documents Rules for Mediation and Arbitration of Construction Disputes CCDC Insurance Requirements ‘The latest editions of the following documents are available on the CCDC Web Site www.cede.org CCDC Bulletin 7 — Use of Supplementary Conditions with CCDC Standard Contract Forms CCDC Bulletin 17 — Construction Warranties CCDC Bulletin 18 — Warranty vs. Guaranty CCDC Bulletin 21 —Statutory Declarations: Purpose and Practical Application CCDC Bulletin 24 Do Moder Insurance Specifications and Policies Sufficiently Address ‘Today's Construction Contracts, CCDC Bulletin 25 Standard Indemnification Clause ‘ecbc 20-2008