The Construction Agreement serves as the primary contract document for construction projects in Canada, establishing the legal and operational framework between the owner/employer and the contractor. It is essential for any construction project, whether commercial, residential, or industrial, and must comply with both federal and provincial legislation. The agreement typically includes detailed provisions for scope of work, payment terms, project timelines, quality standards, safety requirements, and risk allocation. It incorporates specific Canadian legal requirements such as builders' lien provisions, statutory holdbacks, and prompt payment legislation, which vary by province. The document should be customized based on project size, complexity, and provincial jurisdiction, while maintaining compliance with local building codes and regulations.
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1. Parties: Identifies and provides full legal details of the owner/employer and the contractor
2. Background: Describes the context of the construction project and the parties' intention to enter into the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the contractor
5. Contract Price and Payment Terms: Specifies the contract sum, payment schedule, progress payments, and related financial terms
6. Project Timeline: Sets out the commencement date, completion date, and key project milestones
7. Materials and Workmanship: Establishes quality standards for materials and work execution
8. Changes and Variations: Procedures for handling changes to the scope of work and their impact on price and timeline
9. Site Conditions and Access: Rights and obligations regarding site access, security, and existing conditions
10. Health and Safety: Safety requirements and responsibilities of all parties
11. Insurance and Indemnity: Insurance requirements and indemnification obligations
12. Warranties and Defects Liability: Warranty terms and process for addressing defects
13. Termination: Grounds and procedures for contract termination
14. Dispute Resolution: Procedures for resolving disputes between parties
15. General Provisions: Standard legal provisions including notices, governing law, and assignment
1. Performance Security: Requirements for performance bonds or other security, used for larger projects or when required by the owner
2. Subcontracting: Terms governing the appointment and management of subcontractors, included when subcontracting is permitted
3. Environmental Protection: Specific environmental obligations and compliance requirements, included for projects with significant environmental impact
4. Intellectual Property: Rights and obligations regarding designs, patents, and other IP, included when design services or innovative methods are involved
5. Force Majeure: Provisions for handling unforeseen events, particularly relevant in long-term or complex projects
6. Liquidated Damages: Pre-agreed damages for specific breaches, typically included in larger commercial projects
7. Building Information Modeling (BIM): Obligations and protocols for BIM usage, included when BIM is part of the project delivery
8. Indigenous Peoples Considerations: Specific provisions related to Indigenous rights and consultation, included for projects on or affecting Indigenous lands
1. Schedule A - Scope of Work: Detailed technical specifications, drawings, and work requirements
2. Schedule B - Contract Price Breakdown: Detailed breakdown of the contract price, including unit prices if applicable
3. Schedule C - Project Schedule: Detailed timeline including milestones and critical path activities
4. Schedule D - Required Insurance: Specific insurance requirements and coverage limits
5. Schedule E - Key Personnel: List of key project personnel and their responsibilities
6. Schedule F - Forms: Standard forms for change orders, payment applications, and certificates
7. Schedule G - Site Plan and Layout: Drawings showing the construction site and access points
8. Schedule H - Quality Assurance Plan: Quality control procedures and testing requirements
9. Appendix 1 - Building Permits and Approvals: Copies of relevant permits and regulatory approvals
10. Appendix 2 - Health and Safety Plan: Detailed safety procedures and protocols
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Commercial Property
Industrial
Residential Development
Healthcare
Education
Retail
Hospitality
Energy
Transportation
Public Sector
Mining
Manufacturing
Relevant Teams
Legal
Procurement
Construction
Project Management
Operations
Commercial
Risk Management
Finance
Property Development
Facilities Management
Technical Services
Health and Safety
Environmental Compliance
Contract Administration
Quality Assurance
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Procurement Manager
Site Supervisor
Quantity Surveyor
Risk Manager
Commercial Director
Operations Director
Chief Executive Officer
Finance Director
Development Manager
Facilities Manager
Property Manager
Architect
Engineer
Health and Safety Manager
Environmental Compliance Officer
Claims Manager
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