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ARTICLE · 31 MARCH 2022

Here's The Drill: Early Occupancy In Construction Contracts: How Does It Really Work?

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In December 2020 the Canadian Construction Documents Committee (CCDC) released an updated version of the widely used CCDC 2-2020 Stipulated Price Contract. In December 2021

CanadaReal Estate and Construction
Jeff Scorgie
Jeff Scorgie
Michael Swartz
Michael Swartz
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In December 2020 the Canadian Construction Documents Committee (CCDC) released an updated version of the widely used CCDC 2-2020 Stipulated Price Contract. In December 2021, the Canadian Construction Association (CCA) released an updated version of its standard form stipulated price subcontract, the CCA 1-2021. Both contracts include new language that allows the Owner to take early occupancy of part of the Work on certain conditions, one of which includes obtaining the Contractor's agreement. Both contracts also stipulate that the 1 year warranty period on the part of the Work (or Subcontract Work) being occupied will start to run from that date. While there is some obvious logic to having the Contractor's (and applicable Subcontractors') warranty period starting to run on areas of the Project the Owner is taking occupancy of, having the warranty period commence and expire on a staged basis does create some potential challenges.

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