CCDC 2025 Updates: What You Need to Know About the New Construction Management Contracts
Introduction
On June 30, 2025, the Canadian Construction Documents Committee (CCDC) released updates to its suite of standard form contracts. The following contracts have received updates:
- CCDC 5A – Construction Management Contract – For Services;
- CCDC 5B – Construction Management Contract – For Services and Construction;
- CCDC 17 – Stipulated Price Contract Between Owner and Trade Contractor for Construction Management Projects; and
- CCDC 30 – Integrated Project Delivery Contract.
The last updates to CCDC 5A, 5B, and 17 were in 2010, while the CCDC 30 was last revised in 2018. Since then, the construction industry has experienced legislative reform, particularly around prompt payment and adjudication, alongside shifts in risk allocation, project delivery methods, and expectations for pre-construction involvement.
The 2025 revisions aim to modernize these contracts and bring them in line with the realities of today’s construction industry.
The Ready-for-Takeover Milestone
Perhaps the most prominent change is the introduction of the Ready-for-Takeover milestone, a concept first seen in the CCDC 2-2020 form and now incorporated into the construction management agreements.
A Project has attained Ready-for-Takeover when the Consultant verifies the contractual prerequisites are met. The contractual prerequisites are limited to the following:
- the Project is ready for use or is being used for its intended purpose;
- there is evidence for compliance with the requirements for occupancy or occupancy permit;
- final cleaning and waste removal is complete, as required by the Contract Documents;
- the Owner has received all operations and maintenance documents reasonably necessary for immediate operation and maintenance;
- a copy of up-to-date as-built drawings is available;
- startup testing required for immediate occupancy is complete;
In effect, the Ready-for-Takeover framework bridges the gap between the legal definition of “substantial performance” of the work and the practical moment when an owner can actually use the project for its intended purpose. Under the Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4, substantial performance requires only that a substantial part of the project be ready for use and that the value of the remaining work be below a prescribed threshold. This statutory test can create uncertainty because it does not necessarily align with the owner’s operational needs.
Substantial performance will continue to trigger lien periods and the release of holdback, but Ready-for-Takeover focuses instead on operational readiness. A project is deemed ready when it meets a defined set of practical prerequisites, including delivery of occupancy permits, completion of final cleaning, provision of operations and maintenance manuals and as-built drawings, training of the owner’s personnel, and ensuring that the site is safe and secure for use. The Project Consultant is responsible for verifying compliance with these requirements, providing clarity and reducing the risk of confusion or dispute that may arise if project closeout were tied solely to substantial performance.
Early Occupancy Flexibility
The updated contracts also recognize that owners may need to take possession of part or all of a project before the Ready-for-Takeover milestone is reached.
The new provisions on early occupancy allow this, provided that the construction manager or relevant trade contractors consent and that any required authority approvals are obtained.
Early occupancy has important consequences: it transfers health and safety responsibilities for the occupied areas, triggers warranty periods for the relevant work, and may affect insurance coverage. As a result, the parties will need to address these implications early in the project to avoid disputes.
Payment and Holdback Reform
Another significant shift is the formal integration of prompt payment requirements into the CCDC templates. Previously, these provisions were often addressed through supplementary conditions. Now, the contracts include detailed requirements for “proper invoices” and establish that owners must make payment within 28 calendar days of receipt, replacing the old 20-day period.
The revisions also extend the principle of progressive release of holdback to all eligible work, not just that performed by subcontractors and suppliers, thereby improving cash flow for construction managers as well.
Recalibrated Liability Limits
The 2025 updates also adjust the limitations of liability for uninsured losses. In CCDC 5A, the cap is now the greater of the fee for services or $2 million, up to a maximum of $20 million. CCDC 17 adopts a similar formula, tying the limit to the greater of the contract price or $2 million, again capped at $20 million. CCDC 5B follows the same approach but now defines Contract Price more broadly to include fees for both pre-construction and construction services, reimbursable expenses, and the cost of the work. This expanded definition generally increases potential liability. All of the updated contracts also introduce a mutual waiver of consequential damages, though this term remains undefined, and they carve out exceptions for bad conduct, such as criminal acts.
Clearer Treatment of Pre-Construction Services
The role of pre-construction services has been clarified and expanded, particularly in CCDC 5B. Previously, these services were acknowledged in schedules but not treated as contractually distinct from the rest of the work. Now, they are defined separately, with their own fee structures, payment processes, and rules for reimbursable expenses. The consultant’s role is limited in this phase, as payment applications for pre-construction services go directly to the owner without certification. CCDC 5A stops short of creating a standalone pre-construction section but does allow fees to be allocated among pre-construction, construction, and post-construction phases, offering greater transparency in how compensation is calculated.
Termination for Convenience
For the first time, both CCDC 5A and 5B include provisions allowing an owner to terminate the contract without cause. The consequences of such a termination depend on the project phase. If it occurs during pre-construction, the construction manager is entitled to a break fee calculated as a percentage of the agreed cost estimate. If it happens during construction, the construction manager may claim direct damages, including reasonable loss of profit. The revised contracts also broaden the construction manager’s rights to terminate for cause, such as in the event of owner insolvency.
Scheduling and Execution Planning
The revisions also bring sharper definitions to scheduling. Project Schedule is now explicitly the owner’s overall plan, which may include permitting and development activities, while Construction Schedule is the construction manager’s detailed timeline for the work, aligned with but distinct from the project schedule. In CCDC 5B, the owner may request an execution plan detailing methodology, procurement strategies, the use of the construction manager’s own forces, and projected cash flow. This planning document can also shape or limit the construction manager’s control obligations.
Other Notable Changes
Several smaller but important revisions appear across the updated contracts. Cash allowances have been removed from CCDC 5A and 5B. Dispute resolution clauses now anticipate the use of adjudication where mandated by law. In CCDC 5B, new appendices address guaranteed maximum price, stipulated price, and cost savings options, with each supported by tailored amendments. Owners’ audit rights over the cost of the work have been extended from 60 days to one year. The list of delays beyond the construction manager’s control now includes subcontractor default, insolvency, abandonment, or termination. Finally, CCDC 17 now provides clearer guidance on the respective roles of the construction manager and the consultant in managing trade contractors.
Updates to CCDC 30
The Integrated Project Delivery (“IPD”) Contract (CCDC 30) has also been revised from its 2018 version. The June 2025 amendments strengthen alignment with the core principles of IPD: collaboration of key participants, shared risk and reward, joint project control, and transparency of information.
Structurally, the contract has been reorganized to better reflect the IPD lifecycle, with a formal Validation Phase following execution, a Project Execution Phase for design, procurement, construction, and warranty, and General Articles that apply throughout. The Validation Phase now culminates in a comprehensive Validation Report, which determines whether the project proceeds or terminates.
Other notable changes include mandatory Lean practices such as the “Big Room,” the option to appoint an IPD Advisor, and adoption of the Ready-for-Takeover milestone to mark transition into the warranty period. Owners may now add Added Value Incentive Items (AVIIs) during the Construction Phase, the “Risk Pool” has been renamed the “Profit Pool,” reimbursable costs have been expanded, and changes to project objectives, targets, and schedules must be made through Contract Amendments rather than change orders. Transparency and audit protocols have also been reinforced, with editable schedules provided in Word format for easier customization.
To succeed with CCDC 30, parties must actively practice IPD principles by collaborating and embracing Lean tools, ensuring governance bodies have authority to make binding decisions, and using the tiered conflict management framework to resolve disputes early. By following these practices, participants can better realize the intended benefits of CCDC 30 and improve the chances of delivering projects that meet or exceed expectations.
Practical Takeaways
The 2025 CCDC updates are more than cosmetic. They reflect a shift toward clearer milestones, greater contractual flexibility, and built-in compliance with prompt payment rules. The changes to liability limits, fee structures, and termination rights will require careful review during negotiation, and the new planning tools and definitions will demand more front-end coordination. While the updated forms are designed to reduce the need for supplementary conditions, they still need to be tailored to suit the specific risks and requirements of each project.
Conclusion
By modernizing the CCDC contracts, the 2025 revisions bring them into closer alignment with current legislative requirements, industry standards, and project delivery practices. They offer better tools for risk management, clearer definitions for critical milestones, and more transparent fee arrangements. Owners, contractors, and consultants who take the time to understand and adapt these changes will be well-positioned to reduce disputes, improve cash flow, and deliver projects more efficiently.