A construction contract is the single document that decides who gets paid, when, and what happens when something goes wrong. In Canada the trade runs on two tracks: the CCDC standard forms used on commercial, institutional and industrial jobs, and the plain small-works contract you write yourself for a homeowner. Get the contract right and most disputes never start. On consumer renovations several provinces also force terms on you by law: in Ontario, for example, an agreement to do future work for a homeowner must be in writing once it is worth more than $50.
The CCDC family (the standard forms)
The Canadian Construction Documents Committee (CCDC) publishes the consensus prime contracts used across the country. Owner, contractor and design groups all sit on the committee, so the base forms are reasonably balanced. The ones a tradesperson meets are:
- CCDC 2-2020 Stipulated Price Contract. The workhorse: a fixed lump-sum price between an owner and a prime contractor. This 2020 version replaced the old 2008 form, which was retired on 1 January 2022. If a contract still references CCDC 2-2008, it is out of date.
- CCDC 5A and 5B. Construction-management forms, updated in 2025. 5A is services only (the manager advises, the owner holds the trade contracts); 5B is services plus the work itself.
- CCA 1-2021 Stipulated Price Subcontract. The form a subcontractor actually signs. It was updated to mirror CCDC 2-2020.
The single most important habit with any CCDC job is to read the supplementary conditions. Owners routinely bolt on extra clauses that tilt the base form in their favour, and on a subcontract those owner-side terms can flow down to you. Get a copy of the whole prime contract, supplementary conditions included, before you bid.
What CCDC 2-2020 changed
Four headline changes matter on site:
- Ready-for-Takeover replaced "substantial performance" as the key milestone. It requires a consultant's certificate, an occupancy permit, final cleaning, as-built drawings, operation and maintenance manuals, start-up testing and training. Your warranty clock now runs from Ready-for-Takeover.
- Payment terms tightened: the owner must pay a proper invoice within 28 days and give written reasons if it disputes any amount.
- Prompt-payment is acknowledged: the contract confirms it does not limit your statutory adjudication rights (see Adjudication and Your Dispute Routes).
- Indemnification is capped to direct losses only. Indirect, consequential and punitive damages are excluded.
The plain small-works contract
For a homeowner job you write your own contract. A defensible one covers, at a minimum:
- Full legal names and contact details of both parties
- A fair, accurate description of the work, materials, brands and finishes
- An itemised price showing labour, materials and the applicable GST, HST, QST or PST
- The total price and the payment schedule (deposit, progress draws, holdback, final payment)
- Start date and an estimated completion date
- Who pulls and pays for permits
- The change-order procedure: written authorisation before any extra work proceeds
- Warranty terms
- A dispute-resolution clause
- Cancellation rights
A one-page handshake with no completion date and no price breakdown is exactly the contract that gets a contractor into trouble.
Written-contract rules by province
Consumer-protection law sits on top of your contract on residential work:
- Ontario (Consumer Protection Act, 2002): an agreement for future work must be in writing once it exceeds $50. A "direct agreement" signed in the home carries a 10-day cooling-off period from the day the homeowner receives a written copy. Crucially, the contractor cannot charge more than 10% above an estimate without the homeowner's written consent. A new Consumer Protection Act, 2023 (Bill 142) received Royal Assent on 6 December 2023 but has not yet been proclaimed in force, so the 2002 Act still governs.
- British Columbia (Business Practices and Consumer Protection Act): a future-performance contract must be in writing, with a 10-day cancellation right from receipt.
- Alberta (Consumer Protection Act): estimates and contracts should be written; a supplier cannot charge more than 10% above an estimate, to a maximum extra of $100, without the consumer's express consent.
- Quebec stands alone. Contracts run under the Civil Code of Quebec (arts 2098 to 2129), the contract should be written, and every contractor must hold a valid RBQ licence. The Code imposes baseline legal warranties regardless of what your paperwork says.
Common mistakes
- Skipping the supplementary conditions. The base CCDC form is balanced; the add-ons are where you get hurt.
- No completion date or price breakdown on a homeowner job. This is the defect that voids contracts under the Ontario CPA.
- Treating an "estimate" as non-binding. In Ontario an estimate triggers the 10% cap whether you label it rough or not.
- Using a retired form. CCDC 2-2008 was withdrawn on 1 January 2022.
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