Collaborative Contracts And The CCDC 30: Benefits, Risks, And Contractual Considerations

The success of a construction project delivered under a traditional model, such as a stipulated-price contract awarded to a general contractor under a design-bid-build approach, depends largely on having a complete and thorough design in place before the tender is issued. Contractors can then assess the scope of the work, evaluate the associated risks, and plan their schedule and construction methods accordingly before submitting a stipulated price.

However, when unexpected conditions arise on site, experience shows that the change management mechanisms built into lump-sum contracts can push the parties into an adversarial position—and derail the project in the process. In the event of a dispute, each party will attempt to convince the other party, or the consultant, of the merits of their position and the impact of the change on the contract schedule and price. Furthermore, a dispute may force one party to absorb some of the costs in the interim, which damages relationships and