The Voice - Summer 2021 - 46

INDUSTRY
The New CCDC 2
Stipulated Price Contract
- WHAT YOU NEED TO KNOW!
By Shiksha Puri and Harp Khukh
I
n December 2020, the Canadian Construction
Documents Committee ( " CCDC " ) introduced an
updated version to the CCDC 2 Stipulated Price Contract
( " CCDC 2 - 2020 " ). Most of the updates were made to
complement the prompt payment legislation that was
introduced in the Construction Act in 2019 and reduce the need
for supplementary conditions. For more information on the
prompt payment legislation and adjudication, please see our
article in the Fall 2020 issue of The Voice Magazine. CCDC has
indicated that it will continue to publish and issue stickers for
CCDC 2- 2008 for one (1) more year to allow parties to acquaint
themselves with the new contract.
The following are some of the key changes introduced in CCDC
2 - 2020:
1. Cash Allowances
The Consultant can now reallocate cash allowances to cover
unexpected shortfalls, i.e. where the actual cost of the Work
under a cash allowance exceeds the cash allowance amount, the
Consultant can relocate any unexpended amount from other cash
allowances to cover the shortfall. In such cases, the Contract Price
will not change unless the actual cost under all cash allowance
exceeds the total amount of all cash allowances in the Contract.
2. Payment Terms & Release Of Holdbacks
The payment process has been updated to complement the recent
prompt payment legislation. The fundamental changes to the
payment terms and release of holdback under the CCDC 2 - 2020
include the following:
a. The Contractor's payment application shall comply with the
requirements of the prompt payment legislation, so that it is a
" proper invoice " in accordance with the legislation;
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THE VOICE June 2021
b. The Contractor shall now submit all applications for payment
to both the Owner and the Consultant at the same time, rather
than just the Consultant;
c. The Consultant shall certify payment within ten (10) days of
receipt of the payment application;
d. In the event that the Consultant certifies a different amount,
or rejects the payment application or any part thereof, it is now
the Owner as opposed to the Consultant who shall notify the
Contractor of a rejection of the payment application or any
part thereof by issuing a written notice of non-payment to the
Contractor giving reasons for the revisions or rejection within
fourteen (14) days of the receipt of the payment application; and
e. The Contractor shall provide evidence of compliance with
worker's compensation legislation and a CCDC 9A Statutory
Declaration on the distribution of payment on all applications
for payment.
3. Change Directive
CCDC 2 - 2020 clarifies that costs are only recoverable while
performing work attributable to a Change Directive. It arranges
the categories of costs considered in the valuation of Change
Directives and provides a list of items such as construction
equipment, labour, certain legal and auditing costs, project
specific information technology, etc. for which costs can now be
charged by the Contractor.
4. Delays
CCDC 2 - 2020 has updated the provisions of delay to differentiate
between delays caused by the Owner, delays caused by stop work
orders and delays caused by events outside of the Contractor's
control. If there is a delay in the performance of the Work due to
a stop work order issued by a court or other public authority, then
an extension of time is only permitted in situations where the
The Voice - Summer 2021

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