CCDC Contract Comparison: Choosing the Right Construction Agreement for Your Project

When starting a construction project in Canada, one of the most important — and often overlooked — decisions is choosing the right contract. The Canadian Construction Documents Committee (CCDC) has developed a suite of standardized contracts designed to bring fairness, clarity, and structure to construction relationships. But with multiple contract types available, each tailored to a specific project delivery model, how do you know which one is right for your project?

At FCC Builders Canada, we’ve worked under nearly every major CCDC contract. We understand how each one functions and how it affects budgeting, timelines, responsibilities, and risk. Whether you're a property owner, developer, architect, or project manager, understanding the differences between the key CCDC contracts will help you select the agreement that best aligns with your project's goals.

The most widely used contract in Canada is the CCDC 2 – Stipulated Price Contract. This is a fixed-price agreement where the contractor agrees to complete the work for a set amount, based on drawings and specifications provided by the owner. It’s ideal for traditional design-bid-build projects where the scope of work is clearly defined from the beginning. Owners prefer CCDC 2 for its predictability, while contractors take on more risk if material costs or timelines change. It works best when the design is complete before construction begins and changes are minimal.

In contrast, the CCDC 3 – Cost Plus Contract offers more flexibility. Instead of a fixed price, the owner agrees to pay the contractor for actual costs incurred, plus a fee (either a percentage or a fixed amount). This contract is beneficial when the scope of work isn’t fully known at the outset or when the project needs to begin before the design is finalized. While it offers transparency in pricing, it can be harder to control final costs unless a Guaranteed Maximum Price (GMP) is negotiated. It’s a great fit for fast-track projects or renovations where unknown site conditions might arise.

Then there's the CCDC 5A and 5B – Construction Management Contracts. These contracts are designed for situations where the owner wants a more collaborative approach. Under CCDC 5A, the construction manager acts as a consultant, providing advice during pre-construction and managing trades hired directly by the owner. Under CCDC 5B, the construction manager becomes the constructor and contracts directly with all subcontractors. These formats are excellent for large or complex projects that benefit from early contractor input, especially when the design is still evolving. They also offer greater transparency and potential cost savings, though they require more owner involvement and decision-making.

For projects that follow a design-build model, the CCDC 14 – Design-Build Contract is the go-to. In this structure, the contractor is responsible for both the design and the construction of the project, under one single contract with the owner. This can speed up the process significantly and streamline communication, as there’s a single point of accountability. However, owners give up a certain level of control over design decisions unless those expectations are clearly outlined early on. It’s best used when the owner prioritizes delivery speed and simplified coordination over hands-on design involvement.

If the owner hires a separate design consultant to oversee the design aspects of a design-build project, the CCDC 15 – Design Services Contract for Design-Build Projects comes into play. It sets out the roles and responsibilities of the design consultant who works under the owner but collaborates with the design-builder. This layered arrangement ensures design intent is protected while maintaining the efficiency of the design-build approach.

It’s also worth mentioning CCDC 17 – Stipulated Price Contract for Trade Contractors on Construction Management Projects, which is often used when a trade contractor is being hired directly under a CCDC 5B model. It ensures that the terms between the construction manager and the trade are clearly defined and aligned with the broader project agreements.

So, which contract is right for you? That depends entirely on your project’s delivery method, complexity, design readiness, and your preference for control versus delegation. If you want a traditional, predictable process, CCDC 2 might be the right choice. If you’re seeking flexibility or early involvement from your construction team, CCDC 5A or 5B could be ideal. And if you want a single entity handling both design and construction, CCDC 14 will likely fit your needs.

At FCC Builders Canada, we help clients make informed decisions about contract selection — and we tailor our services to fit each model. We work collaboratively with owners, consultants, and legal advisors to ensure the chosen agreement supports your project goals and protects your interests from start to finish.

Not sure which CCDC contract is right for your next build? Let’s connect. We’ll walk you through your options, explain the pros and cons, and help you structure your project for success — on paper and on site.