10 Key Changes in the CCDC 2 (2020)
The CCDC 2 (2008) will be pulled off the shelf in June… Learn More
Author(s):  Bailey Harris
published 02/14/2022
The CCDC 2 (2008) will be pulled off the shelf in June 2022 and officially replaced with the CCDC 2 (2020). This article highlights 10 key changes that owners, contractors, and consultants should be aware of in the CCDC 2 (2020).
1. READY-FOR-TAKEOVER MILESTONE
Ready-for-Takeover (“RFT”) is a new scheduling milestone concept related to the completion of the project. It is intended to be a mechanism to ensure the timely total completion of the project once substantial performance has been achieved.
RFT is in addition to, and does not replace, Substantial Performance, and, importantly, does not replace Substantial Performance as a trigger for the release of the holdback. This new milestone is important in connection with the following contractual terms and provisions: Contract Time; Indemnity; Warranty; Waiver; and Delay.
There are six prerequisites to achieve RFT:
If any prerequisite is delayed for reasons outside the control of the Contractor, or by agreement between the Owner and the Contractor, RFT will not be delayed.
There are three key steps to achieve RFT:
2. EARLY OCCUPANCY
Another new concept is Early Occupancy. The Owner may take Early Occupancy of part or the entirety of the Work prior to the Contractor attaining RFT. There are two requirements before the Owner can take Early Occupancy:
Early Occupancy does not relieve the Contractor from the requirement to complete the Work, but the Warranty period will commence from the date of occupancy and the Contractor will cease to be liable for the care of any area that has been occupied by the Owner.
3. PAYMENT TERMS
Changes to the contractual payment terms have been made to reflect legislative amendments across Canada in connection with prompt payment. While Manitoba does not have prompt payment legislation, some of the contractual terms are nonetheless applicable to Manitoba projects. The following changes are noteworthy:
Section 24 of The Builders’ Liens Act provides that the holdback is to be paid after substantial performance. The CCDC 2 (2020) cannot change the legislative requirements applicable to the holdback.
4. CHANGE DIRECTIVES AND REIMBURSABLE COSTS
Reimbursable costs are limited to the actual costs directly attributed to the implementation of the change. Costs are divided into the following categories:
The Contractor is no longer entitled to claim:
5. SAFETY
Under the new CCDC 2, the Contractor is responsible for health and safety AND the Owner is now also responsible for complying with health and safety requirements.
6. DELAYS
GC 6.5.2 has been revised in the CCDC 2 (2020) to preclude claims for extensions for delays caused by a stop work order issued by a court or public authority, UNLESS the delay results in the failure of the Contractor to obtain RFT by the date stipulated in the Contract.
7. INDEMNITY AND WAIVER OF CLAIMS
There are three important changes to the indemnity and waiver of claims provisions of the CCDC 2 (2020):
8. INSURANCE
There are five changes to take note:
9. CASH ALLOWANCES
The Consultant can reallocate any unexpended amounts from cash allowances to cover a shortfall in other cash allowances. There is no change in the Contract Price unless the cost of an increase in a cash allowance exceeds the total amount of all cash allowances. The total of unexpended cash allowances will be deducted from the Contract Price.
10. DOCUMENT REVIEW
There is no longer a positive obligation on the Contractor to review the Contract Documents and report to the Consultant any error, inconsistency or omission. The Contractor’s review of the Contract is only for the purpose of facilitating coordination and execution of the Work.
ARE SUPPLEMENTAL CONDITIONS STILL REQUIRED?
Likely yes. It is important to ensure that the Contract will operate appropriately for the specific project. We encourage you to seek legal advice before drafting supplemental conditions in order to properly assess the nature and scope of the terms. Specific areas that may require consideration include:
DISCLAIMER: This article is presented for informational purposes only. The content does not constitute legal advice or solicitation and does not create a solicitor client relationship. The views expressed are solely the authors’ and should not be attributed to any other party, including Thompson Dorfman Sweatman LLP (TDS), its affiliate companies or its clients. The authors make no guarantees regarding the accuracy or adequacy of the information contained herein or linked to via this article. The authors are not able to provide free legal advice. If you are seeking advice on specific matters, please contact Keith LaBossiere, CEO & Managing Partner at kdl@tdslaw.com, or 204.934.2587. Please be aware that any unsolicited information sent to the author(s) cannot be considered to be solicitor-client privileged.
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