Implementation tips for CCDC 5A and CCDC 5B
The Canadian Construction Documents Committee (CCDC) replaced the CCA 5 Construction Management Agreement with the documents CCDC 5A and CCDC 5B in November 2010. Whereas the old CCA 5 didn't make a clear separation between the Construction Manager’s (CM) consulting services and the construction services, the new CCDC 5B and CCDC 5A cover distinct types of service.
The main differences between Canada's construction contract types 5A and 5B are the roles of the Construction Manager (CM) and the owner, and the services provided by the CM.
CCDC 5A
A CCDC 5A Construction Management Contract is used in the Canadian construction industry for projects managed by a CM. It is typically used when an owner wants to work closely with a construction manager to complete a project. The CCDC 5A contract reflects recommended industry practices and can have important consequences. It is a standard contract between the owner and construction manager for services performed by trade contractors.
The CM acts as an agent of the owner, providing advisory services and overseeing trade contractors hired directly by the owner. The CM's risk is limited to the quality of their services. The owner pays the CM a fee plus the direct and indirect costs of the project. The CCDC 5A format is known as the "owner at risk" format.
CCDC 5B
The CCDC 5B Construction Management Contract for Services and Construction became available in late 2010 after a number of years of development by the Canadian Construction Documents Committee and replaces the older Canadian Construction Association Document, CCA 5, 1988.
The main difference between the CCDC 5A and CCDC 5B contracts is that CCDC 5A is used for construction management services only, while CCDC 5B is used for both construction management services and the performance of the required work during the construction phase. CCDC 5A is a more traditional CM Agreement, while CCDC 5B is a CM at risk agreement.
The CM provides construction management services and performs the work with their own personnel and subcontractors. The CM also provides advisory services during preconstruction and post-construction services. The CCDC 5B format is known as the "construction manager at risk" format.
The CCDC 5B contract includes two options for the CM's fees, which can be executed at the time of signing or later during the project. These options are the Guaranteed Maximum Price (GMP) and the Guaranteed Maximum Price plus % cost savings.