19th Annual BC Institute PMAC Workshop
"Circle of Excellence"
Construction Management
new CCDC 5A, CCDC 5B and CCDC 17
September 28 – 30, 2011
Presented by Roy Nieuwenburg
CW4649436
Outline
today’s session:
- overview of the new forms
- discuss the changes
- discuss how to work with these new
templates
1
first,
any burning questions?
2
As of May 2011, the CCDC (Canadian
Construction Documents Committee) and
CCA (Canadian Construction Association)
phased out the former construction
management standard documents and
replaced them with the new CCDC 5A and
CCDC 5B Construction Management
Contracts and the related CCDC 17 Trade
Contractor Contract.
3
CCDC 5A – previously was “CCA 5 1988 - CANADIAN
STANDARD CONSTRUCTION MANAGEMENT
CONTRACT FORM BETWEEN OWNER AND
CONSTRUCTION MANAGER”
CCDC 5B – no previous equivalent. CCDC’s answer to
“CM At Risk” or “CM converting to stip sum”.
CCDC 17– previously was “CCA17 1996 STIPULATED
PRICE CONTRACT FOR TRADE CONTRACTORS
ON CONSTRUCTION MANAGEMENT PROJECTS”
4
Context – where does cm fit in the bigger
picture?
What is the best Project Delivery Method?
What is the best Contracting Structure?
5
Construction Management Association of
America
“An Owner embarking on a construction
project must make an important decision
regarding the method by which the project is
designed and constructed - the project
delivery method.”
Some further discussion – TAB F.
6
Context – continued
e.g.
design – bid – build
design - build
etc.
7
“species”
- stipulated price (e.g. CCDC2 2008)
- cost plus (e.g. CCDC3 1998)
- unit price (e.g. CCDC4 1982)
- construction management
- design build (e.g. CCA/CSC/RAIC 14 2000)
8
“species” continued:
- EPC– “engineer, procure, construct” or
EPCM “engineer, procure, construction
manage”
- etc.
9
“varieties” of e.g. stipulated
price contract:
-
CCDC2 2008
MMCD (Master Municipal)
Alberta Infrastructure prescribed forms
Civil Works Contract (CCDC18 – 2001) - Unit Price or lump sum
stipulated price
-
10
Province of BC Stip Price Contract (until 2002)
many US examples (core of army engineers etc.)
many owners have their own forms – e.g. UBC PT, UBC,
YVRAA, etc.
Construction Owners Association of Alberta (COAA)
published forms
back to construction management:
variants of construction management:
- straight cm
(CCDC suggests CCDC5A)
- cm converting to stip sum aka CM at risk
(CCDC suggests CCDC5B)
- hybrids (next slide)
11
hybrids (can achieve similar result)
- variants of “cost plus” might be loosely
considered to be akin to cm …
- stip sum contract with lots of cash allowances
…
12
AIA [American Institute of Architects]
equivalents
Tab G
– akin to CCDC5A:
AIA Document C132–2009
– akin to CCDC5B:
AIA Document A133–2009 [with a Guaranteed
Maximum Price]
AIA Document A134–2009 [without a Guarantee
Maximum Price]
13
some advantages of cm
transpancy to the trades
fast tracking
design assist
direct control
14
disadvantages of cm
pricing is “open ended”
(more on this – see slide below)
“will strive”
(more on this – see slide below)
“buck stops here” – with owner (see Hudson
quote, below)
15
pricing is “open ended”
Hudson’s on Building and Engineering
Contracts:
“Most of these management contract
arrangements, when examined in detail
…appear to be little more than thinly
disguised collective cost-plus contracts in
their ultimate final effect …”
16
“will strive”
old CCA 5 said:
“The Construction Manager, along with the Owner
and the Consultant, … shall strive to achieve
Substantial Performance of the Project by …[date]”
- as an assurance - underwhelming!
- even this meager assurance was not included in new
CCDC templates!
17
Supplementary Conditions for new CCDC:
The Construction Manager, along with the Owner and
the Consultant, shall strive to achieve Substantial
Performance of the Project by the target date
specified therefor by the Owner in the preliminary
Project schedule approved by the Owner as it may be
varied or amended from time to time with the
approval of the Owner.
[Substantial Performance of the Project – not even
defined in new CCDC5A]
18
Another factor – Ministries and MASH entities
-
-
-
19
AIT, TILMA (New West Partnership Trade
Agreement), and Core Policy Manual, CAMF
Capital Procurement Audit Checklist etc.:
question - with cm, does each trade
contractor have to be posted on BC Bid,
tendered etc.
{might prefer hybrid model}
Comparison – CCDC5A and CCDC5B
20
•
CCDC 5A – for services
•
CCDC 5B – for services and construction
(i.e. “cm at risk” or “cm converting to stip
sum”)
Comparison – CCDC5A and CCDC5B – cont’d
Who do you want to enter into the contracts
with the Trade Contractors?
•
•
21
CCDC 5A – the Owner does …
CCDC 5B – the Construction Manager
does …
Comparison – CCDC5A and CCDC5B – cont’d
Is the Construction Manager an agent or not?
Must act in the best interests of the Owner?
22
•
CCDC 5A – agent: See GC 2.1.4
•
CCDC 5B – not agent. see GC 1.5.2
changes – new CCDC5A/5B versus old CCA5
old CCA5 – cm was agent (see above)
“strive” – see above
CCDC5B now contemplates converting to stip
sum (old CCA5 did not)
23
changes – new CCDC5A/5B versus old CCA5
- continued
Fees: time-based rates for personnel:
Old CCA5: time-based rates for personnel employed by
the Construction Manager was under of
“Reimbursible Expenses”
Now:
– isolated as a separate heading
– see paragraphs 5.2.3 and 5.3 on page 4 of CCDC5A.
24
changes – new CCDC5A/5B versus old CCA5
- continued
New CCDC5A:
chart listing services – must select and deselect
services, and indicate – “how paid”
[Roy – open CCDC5A – demonstrate Schedule A1]
25
changes – new CCDC5A/5B versus old CCA5
- continued
- Own Forces Work – formerly Article A-7 of CCA5 deleted under new CCDC5A
- could include Own Forces Work as “ADDITIONAL
SERVICES” under SCHEDULE B1 of CCDC5A –
need to remember to do this, if you want the right to
require this (e.g. temporary work, trailers, etc.)
26
changes – new CCDC5A/5B versus old CCA5
- continued
Insurance
- Owner must maintain wrap policy for not less
than $10mil.
27
changes – new CCDC5A/5B versus old CCA5
– cont’d
GC 4.2.2 No deductions shall be made by
the Owner from amounts payable to the
Construction Manager other than those for
which the Construction Manager is proven to
be responsible …”.
28
Keep in mind
PART 9 [INDEMNIFICATION AND WAIVER
OF CLAIMS] - for colleges and institutes and
universities not insured by CURIE, see
requirements prescribed by Risk
Management Branch.
29
Keep in mind - continued
-
30
payment certifier – see paragraph 3.1.1.17
of the General Conditions.
note, whatever it says in the cm document,
the actual operative document, for this
purpose, is the actual agreement with each
individual Trade Contractor (i.e. the
CCDC17).
Keep in mind - continued
Unlike architects and engineers (who are
exempted under Section 4(6) of the Builders
Lien Act), Construction Managers are not
exempted. Under the Builders Lien Act, must
holdback 10% form construction manager.
Also, unless an exempt entity, or if under the
$100,000 threshold (applies to the improvement),
must establish holdback savings account.
31
CCDC17
Basically, the new CCDC17 updates the old
CCA17 1996 to bring it in line with changes
brought in with CCDC2 2008
32
CCDC5B
Appendix for conversion – looks very much
like Supplementary Conditions.
we’d be doing “Supplementary Conditions to
the Supplementary Conditions”!
My inclinations would be – if you want “cm
converting to stip sum”, use simple format of
CCDC5A and go from there.
33
Conclusion
The base documents have changed.
As before, can customize the base
documents to get to where you need to be.
Underlying issues are still the same.
Need to update Supplementary Conditions for
use with these forms.
34
THANK YOU
Questions or Comments:
Roy Nieuwenburg, Clark Wilson LLP
ran@cwilson.com | 604.643.3112
www.cwilson.com