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This spring, the Canadian Construction Documents Committee (CCDC) released a series of updates to its Design-Build construction contract suite, including revisions to the CCDC 14 – Design-Build Stipulated Price contract and the CCDC 15 – Service Contract Between Design-Builder and Consultant, as well as two entirely new contracts: CCDC 32 – Progressive Design-Build Contract and CCDC 33 – Progressive Design-Build Service Contract Between Design-Builder and Consultant. The updates to CCDC 14 and CCDC 15 modernize familiar frameworks, including notable changes to ownership of design and liability allocation. The new CCDC 32 and CCDC 33 introduce a new, phased model that enables owner and design-builder collaboration, giving owners greater involvement in the design process and more flexibility in managing cost and risk before committing to the final project price.
These changes, especially the new CCDC 32 and CCDC 33 contracts, are designed to modernize the construction contracting to make them more collaborative, transparent, and effective. While these changes and new models may be welcomed by many, changes to the contracts through supplementary conditions to fit the project circumstances, address risk allocation, and appropriate contract administration will continue to be common and necessary.
We have set out below a summary of some of the key updates to CCDC 14 and CCDC 15, as well as a summary of the key aspects of the new CCDC 32 and CCDC 33, and how construction professionals can prepare for these changes and new opportunities.
CCDC 14 – Design-Build Stipulated Price Contract
The CCDC 14 Design-Build construction form is often used for complex construction projects where the owner provides its project requirements to the design-builder who in turn engages the consulting team to design the project and carries out the construction and design for a fixed or stipulated price. This is fundamentally different from the CCDC 2 Stipulated Price contract whereby the owner engages separately the consulting team for the design of the project and the contractor are only engaged to carry out that design.
Provisions have been added to the new CCDC 14 in 2026 with respect to design work to provide for a role for consultants engaged by the owner as opposed to consultants engaged by the design-builder. These include responsibilities of the owner in coordinating with the design-builder in engaging the owner’s consultants and a requirement to enter into compatible contracts for all the consultants engaged on the project.1
The update also adds new provisions for the ownership of design work and the associated liability. These new provisions add protections for the copyright of certain deliverables, guarding against alteration by the owner. The new provisions include:
- A new defined term, Instruments of Service, which refers to deliverables that are required by the owner’s Statement of Requirements, and which are prepared by or on behalf of the design-builder.2
- The ownership of the copyright for the Instruments of Service will belong to the party who prepared them, and the owner may retain copies for use and occupancy of the project only. If the owner makes any modifications or alterations to Instruments of Service, the owner is obligated to indemnify the design-builder against claims and costs associated with improper use.3
Further refinements have been made to limitations of liability under the CCDC 14, as well as the integration of provisions for Ready-For-Takeover in line with changes brought in with the update to the CCDC 2 Stipulated Price contract form in 2020.4
Owners and design-builders should consider how the changes to the CCDC 14 will change their responsibilities under it, what impact the same may have on the contract pricing, and the necessary amendments by way of supplementary conditions.
CCDC 15 – Service Contract Between Design-Builder and Consultant
The CCDC 15 contract form, used in tandem with the CCDC 14, sets out a contract between the design-builder and its consulting team, outlining the responsibilities of each respectively. This CCDC 15 has also been updated to align it with the changes made to CCDC 14 in 2026.
As the updated CCDC 14 contract form introduces new provisions for design work by the owner, new provisions have been added to the CCDC 15 that outline responsibilities of Professional Services, including consultants and subconsultants.5
The CCDC 15 provision governing ownership of design work and the associated liability has been modified to align it with the changes made to the CCDC 14 language. This includes specific provisions for the consultant’s ownership resulting from the Professional Services and Instruments of Service it provides, and the owner and design-builder having a non-exclusive licence to use the Instruments of Service for the purposes of the project, provided that the fees and Reimbursable Expenses have been paid.6
Like the CCDC 14, further changes to the CCDC 15 contract form have updated the language of the limitation of liability provisions, and have integrated provisions for Ready-For-Takeover and other changes brought in with the CCDC 2 Stipulated Price contract form in 2020.
Again, design-builders and consultants should consider how the changes to the CCDC 15 will change their responsibilities under it and what impact this may have on the contract pricing.
CCDC 32 – Progressive Design-Build Contract
The CCDC 32 Progressive Design-Build Contract form introduces a new phased, collaborative model whereby the owner and design-builder negotiate the contract price after the initial pre-construction design work has been completed. Since the contract price is negotiated at a later stage in the project, this model allows for an owner to select a design-builder based on qualifications, rather than a submitted stipulated or fixed price. This enables greater collaboration between the owner and design-builder during the pre-construction phase of the project, as the parties will work together as the project progresses through the pre-defined stages for the project.
When is Progressive Design-Build Appropriate?
The CCDC 32 is appropriate for projects with complex or evolving program requirements, or where the owner’s desire for involvement in the design of the project is greater. Traditional Design-Build agreements, such as the CCDC 14, have limited owner involvement and rely on stipulated prices set at the time the contract is awarded. Instead, under a CCDC 32, the owner will be actively engaged in the design development, collaborating directly with the design-builder at each stage gate. Furthermore, the CCDC 32 allows for qualification-based procurement, relying more on the capabilities of the design-builder, rather than financial considerations.
The CCDC 32 also offers greater cost-transparency, which can help manage high risk or uncertain site conditions. The collaborative approach enables scope refinement before price commitment, allowing the owner to establish a clearer projection of the project cost based on cost evaluations at each stage gate in the pre-construction phase of the project.7 Further, the owner is protected should the project cost provided by the design-builder be unacceptable with a right to terminate without further cost implications.8
The above-noted benefits enable the CCDC 32 to be applicable to a broad range of project sizes and types. Owners are free to collaborate with the Design-Builder to tailor their needs of the project as it evolves.
Phases of the CCDC 32 Progressive Design-Build Model
The most notable provision of the new CCDC 32 is the introduction of a phased Progressive Design-Build model. The phases break a project in two, Phase 1 and Phase 2, allowing for Early Work and design to commence, giving the owner and design-builder a picture as to how the costs are accumulating at snapshots in time through stage gates. This in turn enables the owner to evaluate the progress and projection of the project, before committing to a stipulated price. If the owner accepts the Final Project Proposal, the project transitions to a CCDC 14 contract for Phase 2, whereby the design-builder will work under the stipulated price outlined in the Final Project Proposal, moving the project back to operating under a traditional design-build model.9
The phased progressive design-build model creates “stage gates” at key intervals during the course of Phase 1 of the project. Four stage gates are present in Phase 1, with the design-builder being required to submit a proposal for the owner’s acceptance at each stage gate. If the owner is satisfied, they may elect for the project to continue to the next stage gate.
The phased progressive design-build model also creates “off-ramps” with these project proposals, enabling protected exit points for owners to terminate the project with no cost implications should the project become untenable. If the owner elects to terminate the agreement with the design-builder but carry on with the project using the existing design, the design-builder or consultants on the project to that date are not assumed to take on any responsibility or liability resulting from such future use.10
As noted above, Phase 1 consists of four stage gates.11 The first gate consists of strategy and feasibility work, such as the RFP for the design-build team, with a Project Proposal submitted. Upon review and acceptance by the owner, the second gate consists of planning work such as schematic and conceptual design, as well as submission of the owner’s Statement of Requirements, and a second Project Proposal. Upon its acceptance, the third gate sets out that pre-construction work begins alongside other preliminary and design development, and ends with a third Project Proposal. Upon that acceptance, the final stage gate consists of delivery of the construction documents and submission of a Final Project Proposal. At this final stage the owner decides whether to continue the project and transition it to a CCDC 14 Stipulated Price Contract, or terminate it.
The goal of this phased progressive design-build model is to enable collaborative and accurate project cost projections to better inform the stipulated price for completing the project, as well as protecting owners through its stage gates and off-ramps that allow it to exit the project if costs become untenable.
Practical Considerations
The CCDC 32, with its phased model, the improved cost transparency, owner input into design, increased collaboration between the owner and design builder, and the focus on the qualifications of the design-builder is potentially a very effective contract structure. This early collaboration gives design-builders comfort in providing stipulated pricing and obtaining commitments from subcontractors and suppliers for that stipulated pricing as the design-builder is at the heart of the design, budgeting and schedule process at the pre-construction phase. In short, owners and design-builders who are concerned about costs should consider how the CCDC 32 could help them manage cost risks through its phased approach, marked by stage gates and off-ramps, that allow for greater flexibility than committing to a stipulated price at the time the contract is awarded.
CCDC 33 – Progressive Design-Build Service Contract Between Design-Builder and Consultant
The new CCDC 33 Progressive Design-Build Service Contract form governs the relationship between the design-builder and the consultant it engages in progressive design-build projects. It is designed to be used in conjunction with CCDC 32 to outline the design services during Phase 1 of the CCDC 32.
The CCDC 33 is not “CCDC 15 with a different name”. It is structurally designed to match progressive delivery and govern the relationship between the design-builder and the consultant engaged by the design-builder in an evolving model.
Phases of the CCDC 33 Progressive Design-Build Model
Like the CCDC 32, the CCDC 33 has two defined phases. Phase 1 is the Project Development Phase, where the Consultant provides professional services for any early work authorization. Phase 2 is the Design/Construction Phase, where the consultant provides the professional services in accordance with the Final Project Proposal.12
Furthermore, the design-builder and consultant will jointly prepare Project Proposal submissions at each Project Gate to submit to the owner, who will in turn evaluate it and decide whether it wants to proceed.13
The CCDC 33 also authorizes the consultant to provide professional services as required by the Early Work Authorization. This enables the consultant to conduct some of the early work that is agreed upon between the owner and the design-builder.14
Lastly, the CCDC 33 enables the design-builder and consultant to jointly prepare the Final Project Proposal, which, when accepted under CCDC 32, triggers the transition to the Design and Construction Phase under CCDC 33.15
Practical Considerations
Design-builders and consultants engaging in progressive design-build projects should carefully consider how the CCDC 33’s phased structure model will affect their contractual obligations and fee arrangements at each stage of the project, and how the contract may need to be tailored through supplementary conditions to fit the specific project circumstances.
Conclusion and Takeaways
The release of the updated CCDC 14 and CCDC 15, together with the new CCDC 32 and CCDC 33, represents a meaningful modernization of the design-build suite of contracts. The updates to the CCDC 14 and CCDC 15 address longstanding ambiguities around design ownership, liability, and coordination. The CCDC 32 and CCDC 33 offer a new phased model that, in particular, suits complex projects where owners desire greater collaborative involvement, transparency, and cost certainty before committing to a stipulated price.
As with any new or updated standard form contract, the devil will be in the details. Parties should carefully review these contracts before executing them, and, as stated above, consider what supplementary conditions may be required.
Footnotes
1. See e.g., GC 2.6.2 and 2.6.3 of CCDC 14.
2. See e.g., Definitions of CCDC 14.
3. See e.g., GC 1.1.9 – 1.1.11 of CCDC 14.
4. See e.g., Article A-1 and GC 13.3 of CCDC 14.
5. See e.g., Article A-1 of CCDC 15.
6. See e.g., GC 5.2.1 and GC 5.2.3 of CCDC 15.
7. See e.g., GC 2.3 of CCDC 32.
8. See e.g., GC 8.1 of CCDC 32.
9. See e.g., Article A-1 and GC 2.3 of CCDC 32.
10. See e.g., GC 8.1 and 8.3 of CCDC 32.
11. See e.g. GC 2.3 and Schedule B of CCDC 32.
12. See e.g., Article A-1 of CCDC 33.
13. See e.g., GC 2.3.5 of CCDC 33.
14. See e.g., Article A-1 and GC 1.5 of CCDC 33.
15. See e.g., GC 2.1.4 of CCDC 33.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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