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									Wednesday, October 3, 2007
   Panel Presentation
CPPC Forum 2007, Calgary
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
 Q&A
   Who is CCDC?
Canadian Construction Association

     Royal Architectural Institute of Canada

     Association of Consulting
         Engineers of Canada

    Construction Specifications Canada
Who is CCDC?

 Public Sector Owners

 Private Sector Owners

 Legal Representation
 Member - Canadian Bar Association
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.”
 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.
         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
   What’s 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.
    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 Contractor’s Qualification
   CCDC 12 - 1994 Project Financial Info
   CCDC 18 - 2001 Civil Works Contract
   CCDC 20 - 1994 Guide to Use of CCDC 2
   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
    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
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
CCDC Documents
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
CCDC 2: Stipulated Price Contract

GC 12.1: Indemnification
 Introduces concept of mutual
  indemnification between Owner and
  Contractor.
 Consultant removed.
 Introduces limits of liability.
CCDC 2: Stipulated Price Contract
Owner/Contractor Nature of       Monetary               Time Limitation
Indemnify and hold the Claims    Limitation
harmless each other
against

Direct Claims      Insured and   Contract Price, but    Shorter of 6 yrs
                   uninsured     no less than the       from the date of
                   claims        greater of $2M and     Substantial
                                 the insurance limit,   Performance of the
                                 and no more than       work and
                                 $20M                   provincial
                                                        limitation statute
Third-Party Claims Insured       No Limit
Relating to bodily Claims
Injury or Property
Damage
                   Uninsured     No Limit
                   Claims
CCDC 2: Stipulated Price Contract
EXCEPTIONS
Owner               Nature of     Monetary     Time
Indemnifies the     the Claims    Limitation   Limitation
Contractor
Toxic/Hazardous Presence          No limit     No time
Substances      prior to the                   limitation
                Work
Infringement of     Supplied to   No limit     No time
a patent of         the                        limitation
invention           Contractor
Lack of or defect                 No limit     No time
in title                                       limitation
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 …
Panel Presentation – Key Risks
Contractors Perspective
   Timely & Full payment.
   Owner’s Consultant Team
   Contract Security & Insurance
   Mould
   Indemnification & Waiver of Claims
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.
  RFP’s v. Tenders
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.
Panel Presentation – Key Risks
Owner Perspective
 Quality of bid documents.
    Enhanced communication with A&E firms
     during the preparation of contract
     documents.
    Bid-ability & build-ability reviews before
     tender.
    Restricted amendments within 5 days of
     closing.
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.
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.
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.
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 >$100K
    Mandatory schedule with progress
     payments.
    Aggressive completion performance targets.
    Contractor Performance and Evaluation
     Review (CPER) on 100% of contracts.
    Restricted bidders list.
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.
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.
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.

								
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