The Canadian Construction Documents Committee (“CCDC”) has released updated versions of its CCDC 5A, 5B, 17 and 30 standard form contracts. These revisions introduce several long-anticipated changes that directly impact how risk is allocated, how payment is managed, and how project teams collaborate under the Integrated Project Delivery (“IPD”) delivery model. For owners, construction managers and consultants, these changes are more than technical updates: understanding them now can help: (i) avoid cost uncertainty, (ii) to understand how standard form supplementary conditions may need to be updated; and in turn, (iii) improve project execution. In this blog post, we highlight some of the key updates and explore their potential implications for stakeholders across the construction pyramid.

What are the CCDC 5A, 5B, 17 contracts?

The CCDC publishes a suite of standard form construction contracts tailored to various types of project delivery models. The form of contract used on a project depends on the project’s goals, how risk is allocated between the parties, and the intended contractual relationships between the owner, contractor or construction manager, and subcontractors.

For example:

  • The CCDC 5A, 5B and 17 contracts are used in construction management delivery models, where the Owner contracts with a Construction Manager to oversee the project.
  • The CCDC 5A is used when the Construction Manager is providing services, and the Owner retains trade contractors directly often using the CCDC 17 contract.

By contrast, the CCDC 5B –also known as the “Construction Manager at Risk” model – involves the Owner engaging the Construction Manager to provide both services and work. In this at-risk model, the Construction Manager is responsible for hiring and managing trade contractors, and assumes greater risk by subcontracting the work.  

Updates to the construction management contracts (CCDC 5A, 5B and 17)

The CCDC 5A, 5B and 17 were last updated in 2010. The 2025 updates aim to modernize these documents in response to legislative developments and to incorporate changes that users frequently made through supplementary conditions.

Ready-for-Takeover

The updated 5A, 5B and 17 contracts now include the concept of Ready-for-Takeover, which was originally introduced in the CCDC 2 2020 revisions. Ready-for-Takeover is a milestone in the project that occurs after Substantial Performance of the Work but before final completion of the project and is intended to address the disconnect between the concept of substantial performance under lien legislation and the practical reality of owner occupancy. Notably, in the new CCDC 5A/5B and 17, Ready-for-Takeover has replaced Substantial Performance of the Work as the milestone that triggers the beginning of the warranty period, insurance timelines, time period to claim indemnification, and waiver of claims.

Payment upon termination

Under the previous CCDC 5A, if the Owner terminated the agreement, the Construction Manager was entitled to payment for all services properly performed up to the effective date of termination. The previous 5B contained a similar concept, where the Construction Manager was entitled to costs properly incurred up to the time of termination plus the proportionate amount of the Construction Manager’s fee.

The revised 5A and 5B now take a different approach: the Owner and Construction Manager agree in advance to a termination fee, expressed as a percentage of the most recent accepted construction cost estimate. This predetermined percentage may be adjusted to reflect changes in the cost estimate as the project progresses, providing greater certainty for both parties.

Construction Manager’s fee for services

Under the previous 5A and 5B, the Construction Manager’s fee for services was the fee for the entire lifecycle of the project. Under the new 5A and 5B, the Construction Manager’s fee is now broken down into distinct phases: the pre-construction phase, construction phase and post-construction phase. This change provides greater transparency regarding how and when fees are to be incurred in the life cycle of the project.

Prompt Payment Legislation

The revised CCDC templates also account for prompt payment legislation, which is currently in force in certain Canadian provinces, including Alberta and Ontario. While British Columbia recently announced that a legislative proposal for prompt payment legislation was under development, no legislation has been tabled as of the date of this blog post.

What is the CCDC 30 Contract Form?     

IPD is a collaborative project delivery model that aligns the interests of key project participants – typically, the owner, architect, contractor, and other consultants – through a single multi-party contract. The goal is to foster cooperation, increase efficiency, reduce waste, and enhance project outcomes. In the IPD delivery model, the CCDC 30 2025 updates the original 2018 version of the document and introduces some new concepts discussed in more detail below.

Important Updates to the CCDC 30 Contract Form

The Big Room

The 2025 version of the CCDC 30 builds on various tools introduced in the 2018 document to promote proactive problem solving and collaboration. One notable addition is the concept of the “Big Room,” a dedicated physical venue where the project team can meet regularly to discuss issues, coordinate efforts, and resolve challenges in real time.  

Added Value Incentive Items

Added Value Incentive Items are project elements that are identified by the Project Management Team (“PMT”) during the validation phase. These are enhancements the owner would like to include but that cannot be funded within the base target cost. If cost savings are achieved elsewhere in the project, the owner may allocate those savings toward one or more of these wish list items. This mechanism incentivizes the team to find efficiencies and rewards success with added project value.

IPD Advisor

Under the updated CCDC 30, the PMT may engage an IPD Advisor to support the team throughout the project. The IPD Advisor’s role is to advice and coach the IPD team on the implementation of the principles of IPD model.  Their involvement helps ensure that collaborative processes are upheld and that the project team remains aligned with IPD best practices.

Key takeaways for construction stakeholders

  • The new Ready-for-Takeover milestone now replaces Substantial Performance as the trigger for warranty periods, insurance timelines and indemnification deadlines under the CCDC 5A/5B/17 contracts.
  • In the New 5A and 5B, termination and service fees have been restructured, requiring owners and construction managers to agree in advance on a termination fee and allocate fees to distinct project phases.
  • The updated contracts now integrate prompt payment legislation and may require changes to existing supplementary conditions to ensure consistency and compliance.
  • The CCDC 30 (IPD) update introduces new collaboration tools and incentive mechanisms (e.g. “Big Room,” Added Value Incentive Items and the IPD Advisor) that should be reviewed when using the IPD delivery model.

Next steps

With the introduction of new concepts into these standard form agreements, both owners and contractors should take the time to carefully review their existing supplementary conditions and update them as needed. If you have questions or need support navigating these changes, please do not hesitate to contact a member of Miller Thomson’s Construction Group.