The Voice - Summer 2021 - 47

INDUSTRY
Contractor cannot achieve Readyfor-Takeover
by the date stipulated
in the Contract. The provisions with
respect to Owner caused delays and
delays outside of Contractor's control
remain unchanged.
Most of the updates were made
to complement the prompt
payment legislation that was
introduced in the Construction
Act in 2019 and reduce the need
for supplementary conditions.
5. Adjudication
CCDC 2 - 2020 now recognizes the
role of adjudication under the new
prompt payment legislation and a new general condition, GC 8.2
has been added. The new general condition provides that nothing
in the Contract affects the parties' right to resolve disputes
through adjudication.
6. Construction Safety
CCDC 2 - 2020 has been updated and requires both the Contractor
and the Owner to comply with the health and safety regulations
and programs established at the Place of the Work.
7. Ready-For-Takeover
CCDC 2 - 2020 introduces a new completion milestone. This
milestone is achieved when the Consultant confirms satisfaction
of various conditions including:
a. The Consultant has certified or verified the Substantial
Performance of the Work;
b. Occupancy permit is issued;
c. Final cleaning and waste removal is complete;
d. The Owner has been provided with any necessary operations
and maintenance documents;
e. As-built drawings are complete and submitted;
f. Startup testing has been completed for immediate occupancy;
g. The Owner has been provided with secure access to the Place
of the Work; and
h. The Contractor has scheduled any necessary demonstration
and training.
CCDC 2- 2020 links most clauses like delivery date for the
work, delay claims, indemnity, warranty and waiver to Readyfor-Takeover.
However, substantial performance continues to
remain the trigger for release of the holdback.
Going forward, the Consultant shall have to certify substantial
completion and confirm that Ready-for-Takeover has been
achieved.
The Contractor shall submit the
application for Ready-for-Takeover to
the Owner and the Consultant along
with a list of items to be completed
or corrected. The Consultant shall
either confirm the date of Ready-forTakeover
or advise that the Work is
not Ready-for-Takeover and provide
reasons in writing within ten (10)
days of receipt of the application.
8. Early Occupancy By The Owner
CCDC 2 - 2020 now allows the Owner to take early occupancy
of all or a part of the work before Ready-for-Takeover has been
achieved subject to the Contractor's agreement and approval
of the relevant authorities. In such cases, the warranty period
begins on the date of early occupancy and the responsibility of the
work passes to the Owner and the Contractor is no longer liable for
the care of the part of the work occupied by the Owner. However,
if the Owner takes occupancy of the entire work before Readyfor-Takeover
has been achieved, the Contractor is not relieved
from its responsibility to complete the Work in a timely manner.
9. Indemnification And Waiver Of Claims
CCDC 2 - 2020 ties the timing for indemnification and waiver
of claim to the Ready-for-Takeover date instead of Substantial
Performance of the Work. The Contractor and Owner's
indemnification obligations have been revised and are now
limited to direct loss and damage and the parties are not liable
to each other for indirect, consequential, punitive or exemplary
damages.
10. Document Review
The Contractor's obligation to review the Contract Documents
and promptly report any error, inconsistency, or omission in
the Contract Documents has been deleted and replaced with a
new provision that requires the Contractor to report any error,
inconsistency, or omission that it discovers, or that is made
known to it only. It has also been made clear that the objective
of review is only for the purpose of facilitating coordination of
the Work.
This article is provided for information purposes only and does
not constitute legal advice. For any questions or concerns, please
contact Corestone Law at info@corestone.ca.
June 2021 THE VOICE
47
The Voice - Summer 2021

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