Here’s The Drill: Introducing The New CCDC 32 – 2026 Progressive Design-Build Contract

What is CCDC 32?

CCDC 32 is the first standardized progressive-design-build contract published by the CCDC. It allows the owner and design-builder to work together to develop the project before a final price is agreed on. The project is delivered in two phases. First, the parties work together to further develop the design, budget, schedule, and project details. Once the owner approves the final proposal and price, the second phase begins and the design-builder completes the construction work. This approach provides greater flexibility and helps establish a clearer understanding of the project before construction starts. CCDC 32 is designed to operate alongside CCDC 33, the companion service contract under which the design-builder engages its consultant to provide the design services required by the project.

Main Changes

A key feature of CCDC 32 is the shift from a traditional fixed-price design-build model to a progressive design-build approach. Instead of establishing the final stipulated price at the outset, the parties work collaboratively during the early stages of the project to develop a design, budget, schedule, and key project assumptions before the price is finalized (GC 2.1, 3.2).

This collaborative approach is reflected in the contract’s two-phase structure. The Project Development Phase is devoted to advancing the design and providing pre-construction services, pricing, scheduling and risk assessment. Once the owner approves the Final Project Proposal and stipulated price, the project moves into the Design/Construction Phase.

To support decision-making throughout the Project Development Phase, CCDC 32 introduces project gates (GC 2.3), which serve as formal checkpoints. At each gate, the design-builder provides updated design, cost and schedule information, allowing the owner to assess progress and either proceed with the work, request revisions or terminate the process.

Consistent with this emphasis on flexibility, the contract also includes off-ramps (Article A-1, GC 8.1, GC 8.3), which permit either party to terminate the contract before acceptance of the Final Project Proposal. In both cases, the design-builder is entitled to be paid for all services provided, work performed, and reimbursable expenses incurred. However, where the owner initiates the termination, the design-builder is also entitled to compensation for losses sustained on products and construction equipment, and for such other costs and damages sustained (GC 8.1.6). Where the design-builder exercises the off-ramp, the entitlement is limited to payment for services and work performed, including reimbursable expenses (GC 8.3.2).

In addition, CCDC 32 permits early work authorizations, allowing certain activities, such as site preparation, demolition, procurement, and the purchase of long-lead items, to proceed before the overall project price has been finalized (GC Part 2). This approach can help accelerate project delivery and shorten procurement timelines by enabling owners to select a design-builder earlier and complete design development collaboratively rather than requiring fully developed design proposals during the procurement process.

Why it Matters

CCDC 32 reflects a notable shift in how complex construction projects are delivered. It is intended for projects where the scope, price, and risk allocation cannot be fully defined at the outset, and may be well suited where there are uncertain conditions, evolving owner requirements, complex approvals, long-lead materials, or design issues that benefit from early contractor involvement (GC 3.2).

The contract also changes the owner’s role in the project delivery process. Rather than simply defining the project requirements and transferring responsibility to the design-builder, the owner remains actively engaged throughout the Project Development Phase and participates in key decisions as the design, budget, and schedule evolve, particularly at project gates (GC 3.2).

For contractors and design-builders, CCDC 32 introduces a different approach to project pricing. Instead of committing to a fixed price before critical project details are known, the design-builder can participate in design development, reviews, and risk assessments before establishing the final stipulated price. During the Project Development Phase, the design-builder’s remuneration may be structured as a stipulated fee, a fee based on time-based rates, or another arrangement agreed by the parties, or any combination of these (Article A-5). This flexibility in fee structure allows pricing to be based on a more complete understanding of the project and can improve cost certainty while reducing the need to include additional contingencies for unknown risks and uncertainties at the outset (GC Part 2).

Benefits of CCDC 32

One of the benefits of CCDC 32 is that it allows greater project certainty to develop before the parties commit to a final price. By providing time to advance the design, assess risks, and refine project assumptions, the contract supports the development of a more accurate budget before construction begins (GC 2.3).

This approach also encourages collaboration throughout the early stages of the project. Because the design-builder is involved from the outset, owners can benefit from early input on constructability, scheduling, materials, and potential cost-saving opportunities (GC 3.2, 3.3). As design decisions are made collaboratively, potential issues can often be identified and addressed before they result in delays or additional costs during construction.

At the same time, CCDC 32 gives owners greater visibility into the project’s development. Through project gates and the Final Project Proposal process, owners receive ongoing information about the design, schedule, and budget as they evolve, allowing them to monitor progress and make informed decisions before committing to full construction. This increased oversight is complemented by the progressive pricing model, which provides greater transparency into how project costs are developed and refined over time (GC 2.3, Article A-5).

The contract also offers flexibility if project circumstances change. Through the off-ramp mechanism, an owner may choose not to proceed to the construction phase if the project no longer aligns with its budget, requirements, or objectives (Article A-1). As a result, owners are able to evaluate the project using more complete information before making a final commitment.

More broadly, because the final price is not fixed during procurement, the selection process can focus more heavily on qualifications, experience, and overall approach rather than solely on the lowest initial price. This can help owners identify the design-builder best suited to deliver the project while still benefiting from a collaborative process that promotes cost certainty, transparency, and informed decision-making.

Things to Note

Although CCDC 32 offers greater flexibility and collaboration, those benefits come with increased owner involvement. The owner remains actively engaged throughout the Project Development Phase, reviewing design updates, cost estimates, schedules, and risk assessments, and may need external advisors where in-house expertise is limited (GC 3.2).

This makes the Final Project Proposal a critical document, as it establishes the final price, scope, schedule, and key construction terms. Careful review is advisable, since ambiguities or omissions at this stage can lead to disputes later in the project (GC Part 2). Similar attention should be given to the off-ramp provisions and the ownership of design documents, especially where the owner may wish to continue the project with another contractor.

CCDC 32 also requires careful management of any early work authorized before the final price is established. The scope, cost, schedule, and risk allocation for such work should be clearly defined from the outset (GC Part 2). Because the total contract price is not established until the Final Project Proposal is accepted, owners may also wish to consider cost-control mechanisms, such as upset limits on time-based rates during the Project Development Phase or the inclusion of contingency allowances in the stipulated price for the Design/Construction Phase (Article A-5, GC 5.2). Finally, while CCDC 32 is intended as a standard-form contract, project-specific amendments and supplementary conditions are often necessary to address issues such as risk allocation, insurance, liability, payment procedures, and termination rights.

Here’s the Drill

CCDC 32 provides a standardized framework for delivering progressive design-build projects in Canada. By allowing the owner and design-builder to collaborate on the development of the design, budget, schedule, and risk allocation before establishing a final price, the contract is intended to promote greater collaboration, more accurate pricing, and better-informed project decisions.

That flexibility, however, comes with increased oversight and planning responsibilities. Owners and project teams should pay close attention to key features such as project gates, the Final Project Proposal, early work authorizations, and off-ramp rights, while ensuring that any supplementary conditions appropriately address the project’s specific risks and requirements.

The information and comments herein are for the general information of the reader and are not intended as advice or opinion to be relied upon in relation to any particular circumstances. For particular application of the law to specific situations, the reader should seek professional advice.