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Simple Construction Contract Template for Canada

A standardized construction contract template designed for use in Canadian jurisdictions, suitable for straightforward construction projects of small to medium scale. This document incorporates essential elements required under Canadian construction law, including provisions for liens, payment terms, and provincial building code compliance. It provides a balanced framework for both contractors and property owners, covering key aspects such as scope of work, payment schedules, timeline commitments, and warranty obligations, while remaining sufficiently flexible to accommodate various types of construction projects.

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What is a Simple Construction Contract?

The Simple Construction Contract is designed for use in Canadian construction projects where a straightforward, yet comprehensive agreement is needed between a contractor and property owner. This document is particularly suitable for residential renovations, small commercial builds, and medium-sized construction projects where complex CCDC contracts may be unnecessary. It incorporates essential provisions required by Canadian federal and provincial construction laws, including lien rights, payment terms, and compliance with local building codes. The contract provides a balanced approach to risk allocation and project management while remaining accessible to parties who may not have extensive legal expertise. It's structured to protect both parties' interests while facilitating efficient project execution and clear communication channels.

What sections should be included in a Simple Construction Contract?

1. Parties: Identification of the contractor and client/owner, including full legal names and addresses

2. Background: Brief context of the construction project and the parties' intention to enter into this agreement

3. Definitions: Key terms used throughout the contract defined for clarity

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment: Total contract value, payment schedule, and payment terms

6. Project Timeline: Start date, completion date, and any milestone dates

7. Contractor's Obligations: Key responsibilities of the contractor including quality standards, materials, and workmanship

8. Owner's Obligations: Key responsibilities of the owner including site access, permits, and timely decisions

9. Changes and Variations: Process for handling changes to the scope of work

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Warranties: Contractor's warranties on workmanship and materials

12. Termination: Circumstances and process for contract termination

13. Dispute Resolution: Process for resolving disputes between parties

14. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

What sections are optional to include in a Simple Construction Contract?

1. Health and Safety: Detailed health and safety requirements, recommended for larger projects or hazardous work

2. Environmental Protection: Environmental obligations and requirements, needed if project has significant environmental impacts

3. Security and Performance Bonds: Bond requirements, typically for larger projects or public works

4. Subcontractors: Rules and requirements for subcontracting, needed if subcontractors will be used

5. Site Conditions: Provisions dealing with existing site conditions, important for renovation or brownfield projects

6. Materials Storage: Requirements for materials storage and handling, important for larger projects

7. Quality Control: Detailed quality control procedures, recommended for complex projects

8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term projects

What schedules should be included in a Simple Construction Contract?

1. Schedule A - Scope of Work: Detailed specifications of the construction work

2. Schedule B - Construction Drawings: Technical drawings and plans

3. Schedule C - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule D - Project Timeline: Detailed project schedule including milestones

5. Schedule E - Material Specifications: Detailed specifications for materials to be used

6. Schedule F - Site Plan: Detailed plan showing the construction site and access points

7. Appendix 1 - Required Insurance: Specific insurance requirements and coverage limits

8. Appendix 2 - Safety Standards: Specific safety standards and procedures to be followed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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