There is exciting news in the world of standard form
construction contracts. Yes, you read that right. A new standard
form document aims to provide an option for a different model of
risk allocation.
The Canadian Construction Documents Committee ("CCDC")
is introducing a new standard form construction contract, called
CCDC 30 – Integrated Project Delivery Contract, which aims to
move the construction industry away from the traditional risk
allocation model and towards integrated project delivery
("IPD").
Historically, construction industry contracts have emphasized
risk allocation between parties. The result of this risk allocation
model is the legitimate perception that construction contracts are
in essence a "zero sum" game. Some argue that this risk
model actually inhibits productivity which, in turn, leads to
increased costs on construction projects. A study conducted by the
US Department of Commerce found that the construction industry was
the only major
