To protect against cost overruns, this format must be used with a guaranteed maximum price set by the tendering process. Although the IPD (AIA C191 – 2009) has some similarities with other collaborative design formats, it also has similarities with the Fixed Price Agreement (CCDC 2 – 2008) as it contains a clear separation between the design and construction phases of the project. The Agreed Price Contract Model (CCDC 2 – 2008) is the construction industry`s traditional standard format for typical tendering and contracting processes. In this format, the owner first hires the owner`s design consultant (an architect or engineer), who then prepares the project specifications for the next call for tenders. Contractors` bids for the prefabricated project and the agreed price contract (CCDC 2 – 2008) are usually awarded by the owner on a low bid basis. Although the manager is contractually exposed to a higher risk when assuming direct responsibility for the performance of subcontractors compared to the construction management services contract (CCDC 5A – 2010), the owner remains exposed to the risk of uncertainties inherent in the costs and timelines associated with this model, while the project is being designed, bid and evaluated in phases. This article highlights the key factors for choosing between the price of established models, cost plus, unit price, construction management, design-build, and integrated project delivery, as well as recommendations for aligning these different contract models with the appropriate initial bidding format. This article focuses on the practices of the Canadian construction industry and provides planning guidelines that are useful for all large project teams who want to achieve their goals on time, on budget and according to the rules. The general contractor who receives this contract in turn subcontracts to the various trades (e.B. using the subcontract at the agreed price (CCA 1 – 2008)), which the general contractor manages as a customer during construction and assumes responsibility. The “Agreed Pricing Agreement” format (CCDC 2 – 2008) is used by the Owner in conjunction with a separate consulting contract (either the Owner`s Standard Consulting Agreement for Engineers or industry standard models such as ACEC 31 – 2010 for Engineers or RAIC 6 – 2017 for Architects), where the services of the Owner`s design consultants and sub-consultants are responsible for providing the Owner with project planning and contract management during the construction phase.
CCDC 5B – Construction Management Contract 2010 – for Services and Construction is a standard contract between the owner and the site manager to provide consulting services during the construction phase and to carry out the necessary work during the construction phase. For compliance with commercial contracts, the use of this format is best suited in conjunction with a previous prequalification process, in particular a Supplier Request for Qualifications (RFSQ) framework agreement, which establishes the work assignment process for a list of multiple contractors who are then eligible for downstream work orders under the framework agreement. The pricing of these types of contracts can then be set through downstream tendering procedures on a fixed price basis. Cost Plus Contract (CCDC 3 – 2016) The Cost Plus Contract Template (CCDC3 – 2016) is used when the work is performed by the Contractor on the basis of the actual cost, plus a percentage or fixed fee that is higher than the actual cost to pay the Contractor for their work on the project. An acceptable premium for the contractor`s overhead and profits is typically between 10 and 25%, depending on the size of the project, with small projects attracting a higher percentage than large projects. In this model, the contractor is expected to operate economically to keep costs under control and must maintain verifiable records to justify project costs. CCDC 11 – Contractor Qualification Statement provides a standard format for entrepreneurs to provide information about their business, capacity, skills and experience. It includes: This format is used in situations where the project must begin before the final designs are completed, which prevents the contractor from providing a well-defined amount for the project; However, in order to protect against uncontrolled cost overruns, this format must be used with a guaranteed maximum price. Contracts with the different trades using the format “Agreed price contract for professionals for construction management projects” (CCDC 17 – 2010) should then be awarded on the basis of several ITT or low-bid tendering processes for the different components of the project, which can then be concluded between the owner and the different trades on a fixed sum basis (provided that he there is sufficient certainty in the Design Component). while the site manager and planning consultant receive either a fixed amount, a percentage based on the increased cost, or an amount based on hourly or daily rates.