For years, the Canadian Construction Documents Committee (CCDC) standard agreements have been the go-to for construction projects and are generally designed for a balanced sharing of project risk between owners and contractors. However, the construction industry also regularly uses non-standard agreements and sometimes extensive supplementary conditions, which, according to the CCA, often result in a greater transfer of risk to contractors and their sub-trades.

The guide, Mastering Risk Management in Construction Contracts, was developed by the CCA to serve as a reference for contractors as they bid and negotiate work, with the purpose to ensure that the associated contractual risks are understood and properly addressed to avoid significant financial loss.

The document serves as a checklist following the flow of CCA and CCDC standard contract documents (CCDC 2, 3, 5A, 5B, 14, 15, 17, and CCA1) and covers key considerations across various contract types, such as  Design-Build (DB), Construction Management (CM), and Public-Private Partnerships (P3).

Members are encouraged to read this new document to evaluate and understand the contractor’s perspective and how the various contract terms discussed may impact their role as contract administrators.

This article was originally in an issue of the Practice Advisory—a newsletter developed by the OAA’s Practice Advisory Services team, which offers numerous resources for both members and the public. The OAA does not provide legal, insurance, or accounting advice.