Refresher for Canadian Construction Companies: Recent Changes to CCDC Contracts

The Canadian Construction Documents Committee (CCDC) is a national organisation that develops, produces, and reviews standard construction contracts, forms, and guidelines used in the Canadian construction industry.

The CCDC recently introduced several key updates in the 2025 versions of CCDC contracts, especially CCDC 5A, 5B, and 17, to reflect evolving industry practices and new legal frameworks.

This article provides a refresher on the key changes to CCDC 5A “Construction Management Contract – For Services,” CCDC 17 “Stipulated Price Contract Between Owner and Trade Contractor for Construction Management Projects,” and CCDC 5B “Construction Management Contract for Services and Construction” which came into force this summer.

Key updates

1. “Ready-for-Takeover” milestone
   A brand-new handover milestone, Ready-for-Takeover, has been introduced alongside statutory substantial performance. This milestone aligns legal handover with practical readiness, requiring elements like occupancy permit compliance, final cleaning, delivery of as-built drawings, operations manuals, and training. Its verification (not certification) by the consultant ensures project handover aligns with functional needs.
2. Early occupancy
   Project owners can now take possession of part of a project before Ready-for-Takeover is fully reached. Early occupancy triggers important implications; that portion is considered Ready-for-Takeover, warranty periods commence, and health and safety responsibility shifts. Consent from affected trade contractors or construction managers is required.
3. Pre-construction services and fee clarity
   CCDC 5A and 5B now clearly distinguish pre-construction services as a separate contractual category. Fees for this phase can be structured as fixed or time-based, separate from construction phase fees. In CCDC 5B, pre-construction services are defined distinctly, and payment applications may go directly to the owner. Fee calculations, especially percentage-based fees, are now better delineated across pre-construction, construction, and post-construction phases, reducing ambiguity.
4. Aligned payment obligations with prompt payment laws
   Prompt payment legislation in provinces such as Ontario, Alberta, Saskatchewan, Manitoba (and even federal projects) has been integrated into the new CCDC suite. Contractors must submit monthly applications for payment, and owners must pay within 28 calendar days of receipt in applicable provinces / under applicable laws. Progressive release of holdback has been expanded, including work by the construction manager, not just subcontractors or suppliers as before.
5. Termination for convenience
   New 2025 provisions in CCDC 5A and 5B allow owners to suspend or terminate contracts without cause. CCDC 5B ties entitlements to project phases; during pre-construction a break fee is payable (as a percentage of the cost estimate), while in construction, the construction manager may claim direct damages, including loss of profit.
6. Limitation of liability and mutual waivers
   Liability caps have been introduced: in CCDC 5A, the cap is the greater of the fee for services or CAD $2 million, up to CAD $20 million; in CCDC 5B and 17, the cap is the greater of the contract price or CAD $2 million, up to CAD $20 million. Consequential damages are waived mutually, except in cases of fraud, criminal acts, or wilful misconduct.

Conclusion
The 2025 updates to the CCDC 5A, 5B, and 17 contracts represent a significant modernisation for Canadian construction management. By introducing Ready-for-Takeover, formalising early occupancy, clarifying fee and pre-construction structures, aligning with prompt payment legislation, enabling flexible termination pathways, and limiting liability exposures, these revisions bring greater clarity, predictability, and commercial fairness.

Construction companies are encouraged to carefully review the updated forms to fully understand the revised responsibilities, payment terms, and risk-sharing provisions, and to adjust their contract strategies accordingly.

This article outlines some of the key changes introduced in the updated CCDC Contracts; however, it offers only a general overview and does not cover all modifications.
Beale & Co can advise on incorporating customised supplementary conditions that reflect the outcomes of commercial negotiations and project-specific risk allocations, helping to support the successful delivery of the project for all stakeholders.

If you have any questions about this article or an upcoming construction project, please reach out to Andrés Duran.