CCDC 32: How Canada's Progressive Design-Build Contract Works

The CCDC 32 is Canada’s standard progressive design-build contract. One firm is responsible for both design and construction, but the stipulated price is only set once the design is far enough along to support it. The project runs in two phases: a Project Development Phase, paid on a fee basis, during which the owner validates design, cost and schedule at formal project gates; then a Design/Construction Phase at a stipulated price. What sets it apart from other industry contracts is when the price becomes firm. Here is how the CCDC 32 works, how it differs from the CCDC 2, CCDC 5B and CCDC 14, and when it is the right fit for your project.

What is the CCDC 32 contract?

The CCDC 32 ‚ 2026 is an agreement between an owner (the client) and a design-builder, published by the Canadian Construction Documents Committee. It governs a project where the same firm handles design and construction, in two distinct phases.The CCDC publishes the most widely used standard construction contracts in Canada. They are drafted jointly by representatives of owners, contractors, architects and engineers, so no single party wrote them to its own advantage. For an owner, that has a practical benefit: your lawyer, your lender and your insurer already know the text.

Two CCDC contracts cover design-build

• • CCDC 14‚ 2026: stipulated price design-build. The price is set at signing.

• • CCDC 32‚ 2026: progressive design-build. The price is set when the owner accepts the Final Project Proposal.

The two contracts share much of their content: insurance, warranties, payment, protection of the work, limitation of liability and dispute resolution. What changes is how the project is structured and when the price commitment is made.

How do the two phases of the CCDC 32 work?

A Project Development Phase, then a Design/Construction Phase, separated by a decision from the owner.

1. 1. Contract signing. The parties agree on the Owner’s Statement of Requirements (needs, target budget, intended schedule), on the project gates (Schedule B) and on compensation for the Project Development Phase (Schedules A, C and D)
   2. Project Development Phase. The design-builder provides design and preconstruction services: design, engineering, estimating, scheduling and trade consultation. No construction starts unless Early Work is authorized in writing (GC 2.1).
   3. Project gates. At each gate, the design-builder submits a Project Proposal. The owner accepts it, asks for changes or terminates the contract (GC 2.3).
   4. Final Project Proposal. It includes the stipulated price with a detailed breakdown and the project schedule. It is a firm offer for 30 calendar days, unless otherwise agreed (GC 2.3.6).
   5. Design/Construction Phase. Once the Final Project Proposal is accepted, the proposed schedule becomes the project schedule (GC 2.3.7). The accepted price and contract time are recorded in a Change Order (GC 2.3.10). The design-builder completes the design and builds the work.

During the Project Development Phase, the design-builder is paid a fee (fixed amount, hourly rates or another agreed formula), plus reimbursable expenses. For construction, the design-builder is paid the stipulated price set out in the Final Project Proposal (Article A-5).

What is a project gate in the CCDC 32?

A project gate is a formal milestone where the owner reviews the design, estimated cost, schedule and risks before deciding what comes next. At each project gate, the design-builder submits four items: the proposed design, an estimate of the construction cost, an estimated schedule and any proposed changes to the Owner’s Statement of Requirements (GC 2.3.2). During the Project Development Phase, the owner has 10 Working Days to review the proposal (GC 3.3). The CCDC guide specifies that project gates are also there to check whether the project has drifted so far from expectations that termination should be considered. They are decision points, not just design reviews. As legal analysts at Osler point out, at each gate the owner can decide whether to continue or terminate. The parties can also agree to move into construction earlier by accepting an interim project gate proposal as the Final Project Proposal (GC 2.3.8).

How does the price get more precise along the way?

The CCDC 32 defines four classes of construction cost estimate, from Class D (the most preliminary) to Class A (based on completed construction documents).

The exact content expected for each class is set out in the Definitions of the CCDC 32 – 2026. For the owner, cost narrows step by step, backed by the design that supports it. If the budget drifts, you know early, while correcting course is still inexpensive. One important nuance: during the Project Development Phase, these are estimates, not a price. The price only becomes firm when the Final Project Proposal is accepted.

What is Early Work?

Early Work allows some construction to proceed during the Project Development Phase, before the final price is set. Examples: demolition, preparatory work, ordering long-lead equipment. Each Early Work authorization must specify the description of the work, compensation, schedule (including the date of Substantial Performance), insurance requirements, warranties and any changes to the Owner’s Statement of Requirements (GC 2.2). This mechanism does not exist in the CCDC 14.

Can the contract be terminated before construction?

Yes. Before the Final Project Proposal is accepted, either the owner or the design-builder can terminate the contract by written notice (GC 8.1 and 8.3). The CCDC guide refers to this as an “off-ramp” (see also the analysis by WeirFoulds).If the off-ramp is used, the design-builder is paid for services rendered, work performed and reimbursable expenses incurred. If the owner terminates, certain losses and damages specified in the contract are added. In return, the owner can use the instruments of service (drawings, specifications, studies) to complete the project (GC 8.1.7). This option should not be used lightly. It is meant for cases where the project can no longer be brought back in line with the owner’s requirements, budget or schedule Under the CCDC 14, the design-builder can only terminate if the owner defaults, and the owner’s ability to exit before construction is more limited.

How does the CCDC 32 differ from other industry contracts?

It comes down to two questions: who carries the design, and when does the price become firm?

CCDC 14 or CCDC 32: which one should you choose?

The CCDC 14 suits projects that are well defined from the start. The CCDC 32 suits projects where needs, budget or existing conditions still have to be clarified.

 The CCDC 14 is a good choice when:

•  Requirements are clear and stable before signing;
• The owner wants a firm price right away;
• The project is standard and has few unknowns.

The CCDC 32 is a good choice when:

•  The functional program is still evolving (growth, return to office, site consolidation);
• The owner wants to validate feasibility and cost before committing to construction;
• The existing building has unknowns (older building, concealed conditions);
• The schedule justifies starting some work as Early Work.

One thing stays the same in both contracts: the handover criteria. Ready-for-Takeover rests on the same 8 prerequisites (GC 12.1 of the CCDC 14, GC 13.1 of the CCDC 32), and the one-year warranty runs from that date.

Does the CCDC 32 apply in Quebec?

Yes, but it requires supplementary conditions to align it with the Civil Code of Québec. Like most CCDC contracts, the CCDC 32 was drafted under common law principles. To date, the only CCDC contract adapted to Quebec civil law is the CCDC 2CcQ, 2024. Some Civil Code rules apply regardless of the contract. The owner always keeps the statutory right to unilaterally resiliate the contract of enterprise (art. 2125 C.C.Q.), and the five-year legal warranty against loss of the work (art. 2118 C.C.Q.) cannot be excluded. Quebec’s legal construction hypothec regime also replaces the construction lien logic used in other provinces. These points must be addressed in the supplementary conditions.

This article is provided for information purposes only and does not constitute legal advice. For the interpretation of a specific contract, consult a legal advisor.

Sources

• • Canadian Construction Documents Committee, CCDC 32 2026 Progressive Design-Build Contract

• • Canadian Construction Documents Committee, CCDC 14 2026 Design-Build Stipulated Price Contract

• • Andrew Wong and Tian Gao, Osler, “CCDC releases 2026 documents for design-build and progressive design-build contracting”, July 2, 2026

• • Jeff Scorgie, Kathleen Gregus and Martha LaFontaine, WeirFoulds, “Introducing the New CCDC 32 2026 Progressive Design-Build Contract”, July 8, 2026

• • Government of Qu√©bec, L√©gisQu√©bec, Civil Code of Québec (CQLR c. CCQ-1991), arts. 2118 and 2125