The Canadian Construction Documents Committee (CCDC) has released the 2026 edition of CCDC 14 – Design-Build Stipulated Price Contract, marking the first update to the CCDC 14 since 2013. The revised contract introduces several notable changes, including new project completion requirements, expanded provisions addressing design responsibilities and intellectual property, and revisions to the allocation of contractual liability.
Some of the key changes include:
1. Introduction of Ready-for-Takeover
Consistent with recent revisions to other CCDC standard form contracts, the 2026 edition introduces Ready-for-Takeover as a new contractual milestone, replacing Substantial Performance of the Work as the principal benchmark for contractual completion.
Under the revised GC 12.1, Ready-for-Takeover requires satisfaction of several conditions, including achievement of Substantial Performance of the Work, completion of final cleaning, delivery of required operations and maintenance documentation, and confirmation by the Payment Certifier that the applicable conditions have been satisfied.
The definition of Contract Time has also been revised to run from the newly defined Effective Date to the stipulated date for Ready-for-Takeover. This change distinguishes the statutory concept of substantial performance from the contractual requirements for the Owner to take over the Work, with implications for warranty commencement and contractual claims deadlines.
2. Expanded Provisions for Owner-Retained Consultants
The revised GC 2.6 expressly addresses circumstances in which the Owner retains its own consultants or undertakes certain design activities independently of the Design-Builder.
The updated provisions address coordination between the Design-Builder’s design services and design work undertaken by the Owner or its consultants, including obligations relating to the identification and resolution of deficiencies in Owner-provided design.
These changes are particularly relevant to projects where design responsibilities are divided between the Owner’s consultants and the Design-Builder’s consulting team.
3. Alignment with Prompt Payment and Adjudication Regimes
The 2026 edition also updates CCDC 14 to better align with the prompt payment and adjudication legislation that has been adopted in several Canadian jurisdictions. It introduces a defined term, Payment Legislation, and makes the payment provisions subject to that legislation. The payment provisions now include fixed timelines: the Payment Certifier must certify within 10 calendar days, the Owner must pay within 28 calendar days of receiving an application, and the Owner must give written notice with reasons when an amount is revised or rejected. A new adjudication provision preserves the parties’ statutory adjudication rights. Failure to pay an adjudication award attracts interest and may give the Design-Builder grounds to suspend the Work or terminate the Contract. Parties should review the revised payment and dispute resolution provisions carefully to make sure they are consistent with their existing contract administration practices.
4. New Provisions Governing Ownership of Design Documents
The 2026 edition introduces the defined term Instruments of Service, encompassing design deliverables such as drawings, models and specifications prepared by or on behalf of the Design-Builder.
The revised provisions clarify that copyright in these documents remains with their creator, while the Owner is permitted to retain copies for purposes associated with the use and occupancy of the Project. The provisions also introduce an indemnity in favour of the Design-Builder for claims and costs arising from improper use or alteration of the Instruments of Service by the Owner.
Owners should consider whether these provisions provide sufficient rights to use, modify and rely upon design documents for future alterations, repairs or completion of the Project following termination.
5. Substantially Revised Limitations of Liability
The 2026 edition introduces a broader and more explicit limitation of liability regime than was found in the 2013 form. The 2026 edition extends the limitation of liability to claims between the Owner and Design-Builder generally, regardless of the legal basis of the claim.
The revised contract also introduces an express mutual waiver of indirect and consequential damages for claims between the Owner and Design-Builder. Importantly, this waiver does not apply to third-party claims, which remain subject to the applicable indemnification provisions.
The revised limitations of liability are also subject to various express exceptions, including certain categories of serious misconduct and violations of law. The scope of these exceptions should be carefully considered when assessing the parties’ potential exposure under the Contract.
Overall, these revisions establish a more comprehensive framework for addressing limitations of liability and bring CCDC 14 into closer alignment with the approach adopted in several other recently updated CCDC standard form contracts.
6. Changes to Insurance Requirements
The 2026 edition also revises the contract’s insurance requirements. Professional liability limits rose from not less than $1,000,000 per claim and $2,000,000 aggregate to $5,000,000 per claim and $5,000,000 aggregate. The Design-Builder must now keep that coverage until 3 years after Ready-for-Takeover, rather than 2 years after Substantial Performance of the Work.
In addition, the revised GC 11.1.3 expressly addresses the allocation of insurance deductibles. Generally, deductibles are allocated between the parties in proportion to their responsibility for the loss, subject to other applicable contractual provisions. Where the responsible party is not bound by the Contract, the deductible is allocated to the Owner.
These changes should be considered alongside the revised limitations of liability, particularly where the parties intend to align their contractual exposure with available insurance coverage.
Looking Ahead
While some of the changes to CCDC 14-2026 bring the contract into closer alignment with other recently updated CCDC forms, others introduce more substantive revisions to the contractual rights and obligations of Owners and Design-Builders.
Parties adopting the new form should carefully review their existing supplementary conditions, particularly those addressing project completion, design responsibility, intellectual property, insurance and limitations of liability, rather than simply carrying forward amendments prepared for the 2013 edition.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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