The Canadian Construction Documents Committee (CCDC) has released significant updates to several of its suite of construction contracts in June 2025. This includes a new version of the standard form construction management contracts: the CCDC 5A "Construction Management Contract – For Services," the CCDC 17 "Stipulated Price Contract Between Owner and Trade Contractor for Construction Management Projects," and the frequently used CCDC 5B "Construction Management Contract for Services and Construction." These revisions are designed to reflect evolving industry practices, recent legislative developments, and to harmonize with the changes previously introduced in the CCDC 2-2020 "Stipulated Price Contract." Most notably, the contracts are updated to address prompt payment and adjudication regimes introduced in Ontario, Alberta, and other provinces.
This article briefly highlights some of the key changes but does not purport to cover all revisions made to the standard form contracts. The changes described below apply broadly to the CCDC 5A, CCDC 17, and CCDC 5B, unless specified otherwise. Terms defined in the CCDC 5A, CCDC 17, and CCDC 5B are used in this article.
The new Ready-for-Takeover milestone
A cornerstone of the 2025 revisions is the introduction of the "Ready-for-Takeover" milestone, a concept first seen in CCDC 2-2020 and now extends to the construction management forms. This shift impacts how project handover is defined and managed.
Previously, "Substantial Performance of the Work" was the pivotal milestone for project handover, triggering occupancy, start of warranty, time limits for indemnification and insurance coverage obligations. However, the statutory definition of substantial performance varies across provinces, and in some jurisdictions, it does not require the project to be ready for its intended use. Owners also often insert additional requirements on contractors and construction managers before a project is considered substantially complete, such as the delivery of as-built drawings and operating manuals. This has often led to a disconnect between the legal milestone and the owner's practical requirements for handover, frequently necessitating bespoke supplementary conditions, which often exceeded what was strictly necessary to achieve occupancy.
The 2025 editions retain "Substantial Performance" as a statutory milestone—still critical for the commencement of lien periods and the release of holdback which are governed by the applicable lien legislation—but overlay it with the new "Ready-for-Takeover" milestone. This new milestone is more closely aligned with the owner's operational needs and includes additional prerequisites such as:
- Compliance with all occupancy requirements and permits;
- Final cleaning and waste removal;
- Delivery of operations and maintenance manuals and as-built drawings;
- Ensuring the site is safe and secure for occupancy;
- Completion of demonstration and training for the owner's personnel.
Unlike substantial performance, which is certified by the consultant, "Ready-for-Takeover" is verified (not certified) by the consultant, reflecting a more practical, checklist-driven approach. In CCDC 17, only those trade contractors whose work impacts occupancy must meet the prerequisites to enable Ready-for-Takeover.
Early occupancy
The 2025 contracts also introduce the concept of "early occupancy," allowing the owner to take over a portion or the entirety of the Project before it has attained Ready-for-Takeover. Any portion handed over early is deemed to have attained Ready-for-Takeover, with implications for health and safety responsibilities, warranty periods and insurance coverage.
Where early occupancy is anticipated, parties should clarify how health and safety responsibilities are being transitioned for the occupied part of the site, and when is the commencement of warranty periods for the affected work.
Preconstruction services and fee structure
The 2025 editions of CCDC 5A and 5B provide a much clearer delineation of preconstruction services under the fee for services article (A-5). The fee structure for preconstruction services is now isolated from the construction phase, and can be structured as either a fixed or time-based fee. The CCDC 5A further allows for the separate pricing of fees associated with post-construction services.
This change reflects the reality of many fee structures which separate out the fee calculation for different phases of the project. It also brings greater transparency to compensation for preconstruction and post construction services and reinforces the intent that construction management contracts should ideally commence during the design phase, enabling early input on constructability and budgeting.
The calculation of percentage-based fees is also clarified, with explicit guidance on how fees are to be determined at different project phases. This should reduce ambiguity and potential disputes regarding fee entitlements as the project progresses.
Payment obligations
Reflecting recent legislative changes in several provinces, the 2025 contracts introduce the concept of "Payment Legislation" to reflect the prompt payment legislation that has been introduced in Ontario, Alberta, Saskatchewan, Manitoba, Nova Scotia (not yet in force), New Brunswick (not yet in force), and even on federal projects. As was done with the CCDC 2 – 2020, the CCDC construction management contracts now require the construction manager and trade contractors (under CCDC 17) to submit monthly applications for payment. The owner is obliged to pay within 28 calendar days of receipt, aligning the contracts with prompt payment legislation and providing greater certainty and cash flow predictability for all parties.
Termination without cause (or for convenience) in CCDC 5A and 5B
A significant addition to the 2025 editions of CCDC 5A and 5B is the express provision for termination without cause (sometimes referred to as termination for convenience). If the Owner is unwilling or unable to proceed with the Project, the Owner may now suspend the Project or terminate the Contract even if the construction manager is not in default, providing greater flexibility to address unforeseen circumstances or changes in project viability. This right is not extended to CCDC 17, as by the time trade contractors are engaged, the owner is expected to have confirmed its commitment to proceed.
Schedules in CCDC 5A and 5B now in editable format
A notable change introduced in the CCDC 5A and 5B contracts is the separation of Schedules describing the Services, Reimbursable Expenses, and Time-Based Rates from the standard form contract. Previously embedded directly following the signature page within the standard forms, these Schedules are now provided as standalone, editable Word documents. This shift offers users enhanced flexibility and customization of these Schedules, eliminating the need to amend them through supplementary conditions.
New appendices for pricing options in CCDC 5B
To address longstanding confusion regarding pricing models, the 2025 edition of the CCDC 5B moves the fee structure for the Stipulated Price, Guaranteed Maximum Price (GMP), and Cost Savings options from the Agreement Articles to respective standalone appendices for each option. Each appendix contains tailored amendments to the Agreement and General Conditions, offering clear guidance for the administration of different pricing structures. The exercise of any of these options must be formalized by Change Order, ensuring transparency and proper documentation.
Parties considering using any of these alternative pricing options will need to clarify how their agreed supplementary conditions are to be adapted for the applicable standalone appendices for each option.
Updated definitions: Project Schedule, Construction Schedule, Construction Budget, and Construction Cost
The 2025 contracts introduce more precise definitions, including Project Schedule, Construction Schedule, Construction Budget, and Construction Cost, amongst others.
The contracts now distinguish between Project Schedule (the Owner's overall schedule for the Project which could include development and permitting activities) and Construction Schedule (the progress schedule prepared by the Construction Manager that must align with the Project Schedule but is focused on construction activities).
A distinction is also made between the Construction Budget, which is the anticipated cost that the Owner is prepared to incur on the Construction Cost, and the Construction Cost, which is the total cost to the Owner to construct the Project, excluding the construction manager's fee for preconstruction services and construction services.
These distinctions are intended to improve clarity in project planning, budgeting, and administration, and to reduce the risk of misunderstandings regarding schedules and financial expectations.
Conclusion
The 2025 updates to the CCDC construction management contracts represent a significant evolution, aligning the documents with current industry standards, legislative requirements, and best practices. The changes provide greater clarity in contract language, delineate roles and responsibilities more precisely, and introduce new frameworks for project delivery and risk management. Stakeholders should familiarize themselves with these changes and consider their implications for project planning, procurement, and contract administration. As always, careful review and, where necessary, tailored supplementary conditions will be essential to ensure that the contract reflects the unique needs and risk profile of each project.
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