The Canadian Construction Documents Committee (“CCDC”) has updated its design-build suite with the release of the 2026 edition of CCDC 14 – Design-Build Stipulated Price Contract (“CCDC 14 (2026)”), a new form, CCDC 32 – Progressive Design-Build Contract (“CCDC 32”) and companion documents, CCDC 15 – Service Contract between Design-Builder and Consultant and CCDC 33 – Progressive Design-Build Service Contract between Design-Builder and Consultant.
CCDC 14 (2026) updates the allocation of design risk and project administration from its 2013 predecessor, and CCDC 32 establishes a new framework for progressive design-build projects. Collectively, they signal a broader shift toward enhanced design responsibility, greater contractual clarity, and growing use of progressive project delivery methods.
PART I – CCDC 14 (2026): KEY UPDATES
Expanded Definitions
CCDC 14 (2026) introduces a number of newly defined terms and refines existing definitions to support the broader structural changes to the Contract’s framework. Notable updates include:
(New) Effective Date
- Defined as the date of the contract recorded in the Articles of Agreement. This definition establishes a consistent starting point for the parties’ rights and obligations, including timing for services, payment, and project milestones, and removes the ambiguity which existed in the 2013 form.
(New) Ready-for-Takeover
- Aligning with the recent updates to the design-bid-build and construction management CCDC document suites, this newly defined milestone ties together the point at which the Work meets the conditions required for takeover under GC 12.1, which governs Owner takeover of the Work.
(Revised) Contract Time
- Now defined by reference to Ready-for-Takeover, the Contract Time runs from the Effective Date to the date of Ready-for-Takeover stipulated in the Contract.
(New) Instruments of Service
- Introduced as a defined category of design deliverables, including drawings, models, and specifications.
- The term supports revised provisions governing:
- ownership of design documents;
- permitted use by the Owner; and
- liability associated with reuse.
Design by Owner’s Consultants
GC 2.6 (2026) expands the treatment of third-party design by expressly addressing situations in which the Owner provides design or retains its own consultants. GC 2.6 (2013) was structured on the assumption that design is developed and coordinated primarily through the Design-Builder with “other” design available to be completed by the Owner’s own forces. The 2026 version modifies this by:
- clarifying that the Owner may engage other consultants or self-perform design;
- requiring coordination between the Design-Builder’s design and Owner-provided design inputs; and
- including obligations to identify and address deficiencies in the Owner-provided design.
In practical terms, the Design-Builder may no longer be operating solely within a self-contained design model, and must engage with externally generated design deliverables when applicable.
Insurance Deductibles
The 2026 contract introduces an express allocation of insurance deductibles in GC 11.1.3 (2026), which operates by:
- allocating deductible amounts between the parties in proportion to responsibility for the loss except where the amounts may be excluded by the other terms of the Contract; and
- providing that, where the responsible party is not bound to the contract, the deductible is borne by the Owner.
Limitation of Liability
CCDC 14 (2026) introduces new or substantively revised limitation of liability provisions, which limit the liability exposure of either party under the Contract for both insurable and uninsurable risks.
“Ready-for-Takeover”
CCDC 14 (2026) introduces “Ready-for-Takeover” as the operative milestone, with its requirements set out in GC 12.1 (2026).
The concept is implemented through a structured approach:
- Definition Tied to Conditions: Ready-for-Takeover is defined by reference to the conditions set out in GC 12.1.1 (of which Substantial Performance of the Work is one), and is not achieved unless those conditions are satisfied.
- Mandatory Confirmation: Achievement of Ready-for-Takeover requires confirmation by the Payment Certifier, who reviews the Design-Builder’s application and verifies that the conditions have been met.
Unlike the 2013 form which relies on Substantial Performance of the Work as the primary milestone, CCDC 14 (2026) now distinguishes between:
- Substantial Performance: a statutory, lien-driven threshold for payment and holdback; and
- Ready-for-Takeover: a condition-based milestone governing Owner takeover, certification, and project transition.
In practical terms, this distinction (i) helps distinguish legal completion from operational readiness, (ii) links project handover, and, in some cases, Contract Time, to defined takeover conditions, and (iii) introduces a more structured process, including verification steps, before transition of the Work.
Procedural Updates
CCDC 14 (2026) introduces other targeted procedural refinements and wording improvements across various sections of the Contract.
PART II – CCDC 32: THE PROGRESSIVE DESIGN-BUILD MODEL
Overview
CCDC 32 introduces a progressive design-build model which replaces the traditional approach of fixing scope, price, and schedule at contract execution. CCDC 32 provides for a two phase structure:
- a Project Development Phase which runs from the Effective Date until the Owner accepts a Final Project Proposal; and
- a Design/Construction Phase which runs from the date of acceptance of such Final Project Proposal until completion of the Work.
Unlike CCDC 14, the contract does not establish a fixed contract price (or stipulated price) at the outset but rather, key commercial terms are developed on an on-going basis.
Project Development Phase
During the Project Development Phase (GC 2.1), the Design‑Builder provides design and pre‑construction services and develops design, pricing, and scheduling progressively.
Pricing during the Project Development Phase is flexible with the ability to fix the prices for both design and pre-construction services or proceed on a time based rates basis for one or both.
The process is structured around customizable Project Gates (GC 2.3). At each gate, the Design‑Builder submits project proposals which include:
- progressively developed design;
- a Construction Cost Estimate;
- an estimated project schedule;
- amendments to the schedules of the Agreement; and
- proposed refinements to scope or the Owner’s Statement of Requirements.
The Owner will review such proposal and determine whether to (i) accept and proceed through the Project Gate, (ii) reject and request changes or (iii) reject and terminate the Contract.
At the final Project Gate, the Design‑Builder submits a Final Project Proposal, which includes:
- developed design deliverables;
- a stipulated Contract Price for construction;
- a detailed project schedule;
- any amended services to be provided; and
- any additional proposed refinements or amendments to scope or the Owner’s Statement of Requirements.
Accepting the proposal finalizes scope, price, and schedule and triggers the transition to the Design/Construction Phase. If mutually agreed by the parties, the Owner may accept any proposal received at a Project Gate as the Final Project Proposal and proceed to the Design/Construction Phase early.
The Owner may authorize Early Work (GC 2.2) during the Project Development Phase, allowing discrete construction activities to proceed before the project is fully defined. This supports schedule acceleration while maintaining overall flexibility.
At any time prior to the acceptance of the Final Project Proposal, the Owner (GC 8.1) and/or the Design-Builder (GC 8.3) may terminate the Project by giving Notice in Writing to the other party, with the Design-Builder being entitled to be paid for all services provided and work performed, including reimbursable expenses. In the event of an Owner termination, the Design-Builder is also entitled to any losses sustained upon Products and Construction Equipment and for such other costs and damages sustained.
Transition to Design/Construction Phase
Following acceptance of the Final Project Proposal, the Project enters the Design/Construction Phase (GC 2.4), where the Design‑Builder completes the design and performs the Work on a stipulated‑price basis.
At this stage, the contract aligns more closely with traditional design‑build project delivery models, including standard provisions for changes, payment, and completion milestones.
CONCLUSION
CCDC 14 (2026) modernizes the traditional design‑build model through clearer risk allocation and more prescriptive procedures. The CCDC 32 introduces a progressive framework based on collaborative development, Owner‑driven decision‑making, and by providing off-ramps if the parties are unable to finalize and settle key project proposals before proceeding to the subsequent phase.
For further information, please contact a member of our Construction Group or the authors of this bulletin.
