CCDC 2 Ma
CCDC 2 Ma
CCDC 2 Ma
2MA
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Master Agreement Between
Owner and Contractor
for use with stipulated price Work Authorizations
2 0 1 6
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[ Name of the Project ]
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Name of Project
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*Construction Specifications Canada
*Royal Architectural Institute of Canada
*Committee policy and procedures are directed and approved by the four constituent national organizations.
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For general information on the CCDC, documents published by the CCDC, and the development and proper
usage of CCDC standard documents, refer to the CCDC website (ccdc.org.)
Must not be copied in whole or in part without the written permission of the CCDC.
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TABLE OF CONTENTS
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GC 5.5 Payment of Holdback upon Substantial Performance of the Work
DEFINITIONS GC 5.6 Progressive Release of Holdback
1. Change Directive GC 5.7 Final Payment
2. Change Order GC 5.8 Withholding of Payment
3. Construction Equipment GC 5.9 Non-conforming Work
4. Consultant
5. Contract PART 6 CHANGES IN THE WORK
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6. Contract Documents GC 6.1 Owner’s Right to Make Changes
7. Contract Price GC 6.2 Change Order
8. Contract Time GC 6.3 Change Directive
9. Contractor GC 6.4 Concealed or Unknown Conditions
10. Drawings GC 6.5 Delays
11. Notice in Writing GC 6.6 Claims for a Change in Contract Price
12. Owner
13. Place of the Work PART 7 DEFAULT NOTICE
14. Product GC 7.1 Owner’s Right to Perform the Work, Terminate the Contractor’s Right to
15. Project Continue with the Work or Terminate the Contract
16. Provide GC 7.2 Contractor’s Right to Suspend the Work or Terminate the Contract
17. Shop Drawings
18. Specifications PART 8 DISPUTE RESOLUTION
19. Subcontractor GC 8.1 Authority of the Consultant
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20. Substantial Performance of the Work GC 8.2 Negotiation, Mediation and Arbitration
21. Supplemental Instruction GC 8.3 Retention of Rights
22. Supplier
23. Temporary Work PART 9 PROTECTION OF PERSONS AND PROPERTY
24. Value Added Taxes GC 9.1 Protection of Work and Property
25. Work GC 9.2 Toxic and Hazardous Substances
26. Working Day GC 9.3 Artifacts and Fossils
GC 9.4 Construction Safety
GENERAL CONDITIONS OF THE STIPULATED PRICE CONTRACT GC 9.5 Mould
GC 1.2 Law of the Contract GC 10.2 Laws, Notices, Permits, and Fees
GC 1.3 Rights and Remedies GC 10.3 Patent Fees
GC 1.4 Assignment GC 10.4 Workers’ Compensation
This Agreement made on the _______________ day of ________________________ in the year ________.
___________________________________________________________________________________________________________
hereinafter called the "Owner"
and
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___________________________________________________________________________________________________________
hereinafter called the "Contractor"
The term of this Agreement shall commence on _______________ day of ________________________ in the year ________ and
the Contract.
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end on _______________ day of ________________________ in the year ________ unless otherwise terminated in accordance with
By entering into this agreement, the Contractor acknowledges and agrees that it has no expectation of work or payments beyond
that which may be specifically described in a properly executed Work Authorization.
1.2 perform the Work set out in a Work Authorization, in accordance with the terms and conditions of the Contract for the
purpose of providing construction services for:
____________________________________________________________________________________________________
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____________________________________________________________________________________________________
(generally describe the nature of the intended program of works)
1.4 complete the Work pursuant to the Work Authorization. If the Work contemplated by a particular Work Authorization
continues past the end date of the Contract, the Contract shall remain in force and effect until the completion of the Work.
2.1 The Contract supersedes all prior negotiations, representations or agreements, either written or oral, relating in any manner
to the Work, including the bidding documents that are not expressly listed in Article A-3 of the Agreement – CONTRACT
DOCUMENTS.
2.2 The Contract may be amended only as provided in the Contract Documents.
3.1 The following are the Contract Documents referred to in Article A-1 of the Agreement – THE WORK:
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Work Authorization in the form appended hereto
Additional documents referenced in the signed Work Authorization
*
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* (Insert here, attaching additional pages if required, a list identifying all other Contract Documents e.g. supplementary conditions,
reference documents)
4.1 The Owner will pay the Contractor the specified Contract Price in accordance with the terms set forth in the applicable Work
Authorization and the Contract.
4.2 These amounts shall be subject to adjustments as provided in the Contract Documents.
5.1 Subject to the provisions of the Contract Documents, and in accordance with legislation and statutory regulations
respecting holdback percentages and, where such legislation or regulations do not exist or apply, subject to a holdback of
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_________________________________________________________________ percent ( __________ %), the Owner shall:
.1 make progress payments to the Contractor on account of the Contract Price when due in the amount certified by the
Consultant together with such Value Added Taxes as may be applicable to such payments, and
.2 upon Substantial Performance of the Work, pay to the Contractor the unpaid balance of the holdback amount when due
together with such Value Added Taxes as may be applicable to such payment, and
5.2
5.3 Interest
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.3 upon the issuance of the final certificate for payment, pay to the Contractor the unpaid balance of the Contract Price
when due together with such Value Added Taxes as may be applicable to such payment.
In the event of loss or damage occurring where payment becomes due under the property and boiler insurance policies,
payments shall be made to the Contractor in accordance with the provisions of GC 11.1 – INSURANCE.
.1 Should either party fail to make payments as they become due under the terms of the Contract or in an award by
arbitration or court, interest at the following rates on such unpaid amounts shall also become due and payable until
payment:
(1) 2% per annum above the prime rate for the first 60 days.
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(2) 4% per annum above the prime rate after the first 60 days.
Such interest shall be compounded on a monthly basis. The prime rate shall be the rate of interest quoted by
________________________________________________________________________________________________
(Insert name of chartered lending institution whose prime rate is to be used)
for prime business loans as it may change from time to time.
.2 Interest shall apply at the rate and in the manner prescribed by paragraph 5.3.1 of this Article on the settlement
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amount of any claim in dispute that is resolved either pursuant to Part 8 of the General Conditions – DISPUTE
RESOLUTION or otherwise, from the date the amount would have been due and payable under the Contract, had it not
been in dispute, until the date it is paid.
6.1 Notices in Writing will be addressed to the recipient at the address set out below. The delivery of a Notice in Writing will be by
hand, by courier, by prepaid first class mail, or by facsimile or other form of electronic communication during the transmission
of which no indication of failure of receipt is communicated to the sender. A Notice in Writing delivered by one party in
accordance with this Contract will be deemed to have been received by the other party on the date of delivery if delivered by
hand or courier, or if sent by mail it shall be deemed to have been received five calendar days after the date on which it was
mailed, provided that if either such day is not a Working Day, then the Notice in Writing shall be deemed to have been received
on the Working Day next following such day. A Notice in Writing sent by facsimile or other form of electronic communication
shall be deemed to have been received on the date of its transmission provided that if such day is not a Working Day or if it is
received after the end of normal business hours on the date of its transmission at the place of receipt, then it shall be deemed
to have been received at the opening of business at the place of receipt on the first Working Day next following the
transmission thereof. An address for a party may be changed by Notice in Writing to the other party setting out the new address
in accordance with this Article.
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Owner
__________________________________________________________________________________________________
name of Owner*
Contractor
address
____________________________
facsimile number
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__________________________________________________________________________________________________
_____________________________________________________________
email address
__________________________________________________________________________________________________
name of Contractor*
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__________________________________________________________________________________________________
address
____________________________ _____________________________________________________________
facsimile number email address
* If it is intended that the notice must be received by a specific individual, that individual’s name shall be indicated.
7.2 This Agreement is drawn in English at the request of the parties hereto. La présente convention est rédigée en anglais à la
demande des parties.
8.1 The Contract shall enure to the benefit of and be binding upon the parties hereto, their respective heirs, legal
representatives, successors, and assigns.
In witness whereof the parties hereto have executed this Agreement by the hands of their duly authorized representatives.
WITNESS OWNER
__________________________________________________
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name of owner
_______________________________________________________ __________________________________________________
signature signature
signature
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_______________________________________________________
_______________________________________________________
_______________________________________________________
name of person signing
__________________________________________________
name and title of person signing
__________________________________________________
signature
__________________________________________________
name and title of person signing
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WITNESS CONTRACTOR
__________________________________________________
name of Contractor
_______________________________________________________ __________________________________________________
signature signature
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_______________________________________________________ __________________________________________________
name of person signing name and title of person signing
_______________________________________________________ __________________________________________________
signature signature
_______________________________________________________ __________________________________________________
name of person signing name and title of person signing
N.B. Where legal jurisdiction, local practice or Owner or Contractor requirement calls for:
(a) proof of authority to execute this document, attach such proof of authority in the form of a certified copy of a resolution
naming the representative(s) authorized to sign the Agreement for and on behalf of the corporation or partnership; or
(b) the affixing of a corporate seal, this Agreement should be properly sealed.
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3. Construction Equipment
Construction Equipment means all machinery and equipment, either operated or not operated, that is required for preparing,
fabricating, conveying, erecting, or otherwise performing the Work but is not incorporated into the Work.
4. Consultant
The Consultant is the person or entity engaged by the Owner and identified as such in the Work Authorization. The
5.
6.
7.
Contract
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Consultant is the Architect, the Engineer or entity licensed to practise in the province or territory of the Place of the Work.
The term Consultant means the Consultant or the Consultant’s authorized representative.
The Contract is the undertaking by the parties to perform their respective duties, responsibilities and obligations as
prescribed in the Contract Documents and represents the entire agreement between the parties.
Contract Documents
The Contract Documents consist of those documents listed in Article A-3 of the Agreement – CONTRACT DOCUMENTS and
amendments agreed upon between the parties.
Contract Price
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The Contract Price is the amount stipulated in the Work Authorization.
8. Contract Time
The Contract Time is the time stipulated in the Work Authorization from commencement of the Work to Substantial
Performance of the Work.
9. Contractor
The Contractor is the person or entity identified as such in the Agreement. The term Contractor means the Contractor or the
Contractor’s authorized representative as designated to the Owner in writing.
10. Drawings
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The Drawings are the graphic and pictorial portions of the Contract Documents, wherever located and whenever issued,
showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, and
diagrams.
11. Notice in Writing
A Notice in Writing, where identified in the Contract Documents, is a written communication between the parties or between
them and the Consultant that is transmitted in accordance with the provisions of Article A-6 of the Agreement – RECEIPT
OF AND ADDRESSES FOR NOTICES IN WRITING.
12. Owner
The Owner is the person or entity identified as such in the Agreement. The term Owner means the Owner or the Owner’s
authorized agent or representative as designated to the Contractor in writing, but does not include the Consultant.
13. Place of the Work
The Place of the Work is the designated site or location of the Work identified in the Work Authorization.
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The Specifications are that portion of the Contract Documents, wherever located and whenever issued, consisting of the written
requirements and standards for Products, systems, workmanship, quality, and the services necessary for the performance of
the Work.
19. Subcontractor
A Subcontractor is a person or entity having a direct contract with the Contractor to perform a part or parts of the Work at
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the Place of the Work.
20. Substantial Performance of the Work
Substantial Performance of the Work is as defined in the lien legislation applicable to the Place of the Work. If such legislation
is not in force or does not contain such definition, or if the Work is governed by the Civil Code of Quebec, Substantial
Performance of the Work shall have been reached when the Work is ready for use or is being used for the purpose intended
and is so certified by the Consultant.
21. Supplemental Instruction
A Supplemental Instruction is an instruction, not involving adjustment in the Contract Price or Contract Time, in the form of
Specifications, Drawings, schedules, samples, models or written instructions, consistent with the intent of the Contract
Documents. It is to be issued by the Consultant to supplement the Contract Documents as required for the performance of
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the Work.
22. Supplier
A Supplier is a person or entity having a direct contract with the Contractor to supply Products.
23. Temporary Work
Temporary Work means temporary supports, structures, facilities, services, and other temporary items, excluding Construction
Equipment, required for the execution of the Work but not incorporated into the Work.
24. Value Added Taxes
Value Added Taxes means such sum as shall be levied upon the Contract Price by the Federal or any Provincial or Territorial
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Government and is computed as a percentage of the Contract Price and includes the Goods and Services Tax, the Quebec
Sales Tax, the Harmonized Sales Tax, and any similar tax, the collection and payment of which have been imposed on the
Contractor by the tax legislation.
25. Work
The Work means the total construction and related services specified in the Work Authorization and as required by the
Contract Documents.
26. Work Authorization
Work Authorization is the document in the form appended hereto, issued from time to time by the Owner, which specifies
the Work, the Contract Time and the Contract Price, and when signed by the Owner and the Contractor creates the
Contract.
27. Working Day
Working Day means a day other than a Saturday, Sunday, statutory holiday, or statutory vacation day that is observed by
the construction industry in the area of the Place of the Work.
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1.1.3 The Contract Documents are complementary, and what is required by any one shall be as binding as if required by all.
1.1.4 Words and abbreviations which have well known technical or trade meanings are used in the Contract Documents in
accordance with such recognized meanings.
1.1.5 References in the Contract Documents to the singular shall be considered to include the plural as the context requires.
1.1.6
1.1.7
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Neither the organization of the Specifications nor the arrangement of Drawings shall control the Contractor in dividing the
work among Subcontractors and Suppliers.
If there is a conflict within the Contract Documents:
.1 the order of priority of documents, from highest to lowest, shall be
the Agreement between the Owner and the Contractor,
the Definitions,
Supplementary Conditions,
the General Conditions,
the Work Authorization,
Division 1 of the Specifications,
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technical Specifications,
material and finishing schedules,
the Drawings.
.2 Drawings of larger scale shall govern over those of smaller scale of the same date.
.3 dimensions shown on Drawings shall govern over dimensions scaled from Drawings.
.4 later dated documents shall govern over earlier documents of the same type.
1.1.8 The Owner shall provide the Contractor, without charge, sufficient copies of the Contract Documents to perform the Work.
1.1.9 Specifications, Drawings, models, and copies thereof furnished by the Consultant are and shall remain the Consultant’s
property, with the exception of the signed Contract sets, which shall belong to each party to the Contract. All Specifications,
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Drawings and models furnished by the Consultant are to be used only with respect to the Work and are not to be used on
other work. These Specifications, Drawings and models are not to be copied or altered in any manner without the written
authorization of the Consultant.
1.1.10 Models furnished by the Contractor at the Owner’s expense are the property of the Owner.
GC 1.4 ASSIGNMENT
1.4.1 Neither party to the Contract shall assign the Contract or a portion thereof without the written consent of the other, which
consent shall not be unreasonably withheld.
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GC 2.1 AUTHORITY OF THE CONSULTANT
2.1.1 The Consultant will have authority to act on behalf of the Owner only to the extent provided in the Contract Documents,
unless otherwise modified by written agreement as provided in paragraph 2.1.2.
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2.1.2 The duties, responsibilities and limitations of authority of the Consultant as set forth in the Contract Documents shall be
modified or extended only with the written consent of the Owner, the Contractor and the Consultant.
2.1.3 If the Consultant’s employment is terminated, the Owner shall immediately appoint or reappoint a Consultant against
whom the Contractor makes no reasonable objection and whose status under the Contract Documents shall be that of the
former Consultant.
Article A-5 of the Agreement – PAYMENT, GC 5.3 – PROGRESS PAYMENT and GC 5.7 – FINAL PAYMENT.
2.2.6 The Consultant will not be responsible for and will not have control, charge or supervision of construction means, methods,
techniques, sequences, or procedures, or for safety precautions and programs required in connection with the Work in
accordance with the applicable construction safety legislation, other regulations or general construction practice. The
Consultant will not be responsible for the Contractor’s failure to carry out the Work in accordance with the Contract
Documents. The Consultant will not have control over, charge of or be responsible for the acts or omissions of the
Contractor, Subcontractors, Suppliers, or their agents, employees, or any other persons performing portions of the Work.
2.2.7 Except with respect to GC 5.1 – FINANCING INFORMATION REQUIRED OF THE OWNER, the Consultant will be, in the first
instance, the interpreter of the requirements of the Contract Documents.
2.2.8 Matters in question relating to the performance of the Work or the interpretation of the Contract Documents shall be initially
referred in writing to the Consultant by the party raising the question for interpretations and findings and copied to the other
party.
2.2.13 During the progress of the Work the Consultant will furnish Supplemental Instructions to the Contractor with reasonable
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promptness or in accordance with a schedule for such instructions agreed to by the Consultant and the Contractor.
2.2.14 The Consultant will review and take appropriate action upon Shop Drawings, samples and other Contractor’s submittals, in
accordance with the Contract Documents.
2.2.15 The Consultant will prepare Change Orders and Change Directives as provided in GC 6.2 – CHANGE ORDER and GC 6.3 –
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CHANGE DIRECTIVE.
2.2.16 The Consultant will conduct reviews of the Work to determine the date of Substantial Performance of the Work as provided
in GC 5.4 - SUBSTANTIAL PERFORMANCE OF THE WORK.
2.2.17 All certificates issued by the Consultant will be to the best of the Consultant’s knowledge, information and belief. By issuing
any certificate, the Consultant does not guarantee the Work is correct or complete.
2.2.18 The Consultant will receive and review written warranties and related documents required by the Contract and provided
by the Contractor and will forward such warranties and documents to the Owner for the Owner’s acceptance.
2.3.4 If the Contractor covers, or permits to be covered, work that has been designated for special tests, inspections or approvals
before such special tests, inspections or approvals are made, given or completed, the Contractor shall, if so directed,
uncover such work, have the inspections or tests satisfactorily completed, and make good covering work at the Contractor’s
expense.
2.3.5 The Consultant may order any portion or portions of the Work to be examined to confirm that such work is in accordance
with the requirements of the Contract Documents. If the work is not in accordance with the requirements of the Contract
Documents, the Contractor shall correct the work and pay the cost of examination and correction. If the work is in
accordance with the requirements of the Contract Documents, the Owner shall pay the cost of examination and restoration.
2.3.6 The Contractor shall pay the cost of making any test or inspection, including the cost of samples required for such test or
inspection, if such test or inspection is designated in the Contract Documents to be performed by the Contractor or is
designated by the laws or ordinances applicable to the Place of the Work.
2.3.7 The Contractor shall pay the cost of samples required for any test or inspection to be performed by the Consultant or the Owner
if such test or inspection is designated in the Contract Documents.
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PART 3 EXECUTION OF THE WORK
3.2.2 PL
The Contractor shall be solely responsible for construction means, methods, techniques, sequences, and procedures and
for co-ordinating the various parts of the Work under the Contract.
3.2.3 When separate contracts are awarded for other parts of the Project, or when work is performed by the Owner’s own forces,
the Contractor shall:
.1 afford the Owner and other contractors reasonable opportunity to store their products and execute their work;
.2 cooperate with other contractors and the Owner in reviewing their construction schedules; and
.3 promptly report to the Consultant in writing any apparent deficiencies in the work of other contractors or of the
Owner’s own forces, where such work affects the proper execution of any portion of the Work, prior to proceeding with
that portion of the Work.
3.2.4 Where the Contract Documents identify work to be performed by other contractors or the Owner’s own forces, the
Contractor shall co-ordinate and schedule the Work with the work of other contractors and the Owner’s own forces as
specified in the Contract Documents.
3.2.5 Where a change in the Work is required as a result of the co-ordination and integration of the work of other contractors or
Owner’s own forces with the Work, the changes shall be authorized and valued as provided in GC 6.1 – OWNER’S RIGHT TO
MAKE CHANGES, GC 6.2 – CHANGE ORDER and GC 6.3 – CHANGE DIRECTIVE.
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contrary elsewhere in the Contract Documents where such Contract Documents include designs for Temporary Work or
specify a method of construction in whole or in part, such designs or methods of construction shall be considered to be
part of the design of the Work and the Contractor shall not be held responsible for that part of the design or the specified
method of construction. The Contractor shall, however, be responsible for the execution of such design or specified method
of construction in the same manner as for the execution of the Work.
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The Contractor shall review the Contract Documents and shall report promptly to the Consultant any error, inconsistency or
omission the Contractor may discover. Such review by the Contractor shall be to the best of the Contractor’s knowledge,
information and belief and in making such review the Contractor does not assume any responsibility to the Owner or the
Consultant for the accuracy of the review. The Contractor shall not be liable for damage or costs resulting from such errors,
inconsistencies or omissions in the Contract Documents, which the Contractor did not discover. If the Contractor does
discover any error, inconsistency or omission in the Contract Documents, the Contractor shall not proceed with the work
affected until the Contractor has received corrected or missing information from the Consultant.
GC 3.6 SUPERVISION
3.6.1 The Contractor shall provide all necessary supervision and appoint a competent representative who shall be in attendance
at the Place of the Work while work is being performed. The appointed representative shall not be changed except for valid
reason.
3.6.2 The appointed representative shall represent the Contractor at the Place of the Work. Information and instructions provided
by the Consultant to the Contractor’s appointed representative shall be deemed to have been received by the Contractor,
except with respect to Article A-6 of the Agreement – RECEIPT OF AND ADDRESSES FOR NOTICES IN WRITING.
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3.7.3 The Owner may, for reasonable cause, at any time before the Owner has signed the Work Authorization, object to the use of
a proposed Subcontractor or Supplier and require the Contractor to employ one of the other subcontract bidders.
3.7.4 If the Owner requires the Contractor to change a proposed Subcontractor or Supplier, the Contract Price and Contract Time
shall be adjusted by the differences occasioned by such required change.
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3.7.5 The Contractor shall not be required to employ as a Subcontractor or Supplier, a person or firm to which the Contractor may
reasonably object.
3.7.6 The Owner, through the Consultant, may provide to a Subcontractor or Supplier information as to the percentage of the
Subcontractor’s or Supplier’s work which has been certified for payment.
3.10.1 The Contractor shall provide Shop Drawings as required in the Contract Documents.
3.10.2 The Contractor shall provide Shop Drawings to the Consultant to review in orderly sequence and sufficiently in advance so as
to cause no delay in the Work or in the work of other contractors.
3.10.3 Upon request of the Contractor or the Consultant, they shall jointly prepare a schedule of the dates for provision, review and
return of Shop Drawings.
3.10.4 The Contractor shall provide Shop Drawings in the form specified, or if not specified, as directed by the Consultant.
3.10.5 Shop Drawings provided by the Contractor to the Consultant shall indicate by stamp, date and signature of the person
responsible for the review that the Contractor has reviewed each one of them.
3.10.6 The Consultant’s review is for conformity to the design concept and for general arrangement only.
3.10.7 Shop Drawings which require approval of any legally constituted authority having jurisdiction shall be provided to such
authority by the Contractor for approval.
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revisions to the Shop Drawings other than those requested by the Consultant.
3.10.12 The Consultant will review and return Shop Drawings in accordance with the schedule agreed upon, or, in the absence of such
schedule, with reasonable promptness so as to cause no delay in the performance of the Work.
3.11.2
3.12.1
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The Contractor shall confine Construction Equipment, Temporary Work, storage of Products, waste products and debris, and
operations of employees and Subcontractors to limits indicated by laws, ordinances, permits, or the Contract Documents
and shall not unreasonably encumber the Place of the Work.
The Contractor shall not load or permit to be loaded any part of the Work with a weight or force that will endanger the
safety of the Work.
GC 3.13 CLEANUP
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3.13.1 The Contractor shall maintain the Work in a safe and tidy condition and free from the accumulation of waste products and
debris, other than that caused by the Owner, other contractors or their employees.
3.13.2 Before applying for Substantial Performance of the Work as provided in GC 5.4 – SUBSTANTIAL PERFORMANCE OF THE
WORK, the Contractor shall remove waste products and debris, other than that resulting from the work of the Owner, other
contractors or their employees, and shall leave the Place of the Work clean and suitable for use or occupancy by the Owner.
The Contractor shall remove products, tools, Construction Equipment, and Temporary Work not required for the performance
of the remaining work.
3.13.3 Prior to application for the final payment, the Contractor shall remove any remaining products, tools, Construction
Equipment, Temporary Work, and waste products and debris, other than those resulting from the work of the Owner, other
contractors or their employees.
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overhead and profit on such amount. Multiple cash allowances shall not be combined for the purpose of calculating the
foregoing.
4.1.5 The Contract Price shall be adjusted by Change Order to provide for any difference between the amount of each cash
allowance and the actual cost of the work under that cash allowance.
4.1.6 The value of the work performed under a cash allowance is eligible to be included in progress payments.
4.1.7
4.2.2
4.2.3 PL
The Contractor and the Consultant shall jointly prepare a schedule that shows when the Consultant and Owner must
authorize ordering of items called for under cash allowances to avoid delaying the progress of the Work.
PART 5 PAYMENT
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APPLICATIONS FOR PROGRESS PAYMENT:
.1 the Consultant will promptly inform the Owner of the date of receipt of the Contractor’s application for payment,
.2 the Consultant will issue to the Owner and copy to the Contractor, no later than 10 calendar days after the receipt of
the application for payment, a certificate for payment in the amount applied for, or in such other amount as the
Consultant determines to be properly due. If the Consultant amends the application, the Consultant will promptly
advise the Contractor in writing giving reasons for the amendment,
When the Contractor considers that the Work is substantially performed, or if permitted by the lien legislation applicable
to the Place of the Work a designated portion thereof which the Owner agrees to accept separately is substantially
performed, the Contractor shall, within one Working Day, deliver to the Consultant and to the Owner a comprehensive list
of items to be completed or corrected, together with a written application for a review by the Consultant to establish
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Substantial Performance of the Work or substantial performance of the designated portion of the Work. Failure to include
an item on the list does not alter the responsibility of the Contractor to complete the Contract.
5.4.2 The Consultant will review the Work to verify the validity of the application and shall promptly, and in any event, no later
than 20 calendar days after receipt of the Contractor’s list and application:
.1 advise the Contractor in writing that the Work or the designated portion of the Work is not substantially performed and
give reasons why, or
.2 state the date of Substantial Performance of the Work or a designated portion of the Work in a certificate and issue a
copy of that certificate to each of the Owner and the Contractor.
5.4.3 Immediately following the issuance of the certificate of Substantial Performance of the Work, the Contractor, in consultation
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with the Consultant, shall establish a reasonable date for finishing the Work.
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sums required to satisfy any legal hypothecs that have been taken, or could be taken, against the Work or other third party
monetary claims against the Contractor which are enforceable against the Owner.
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has certified that the work of a Subcontractor or Supplier has been performed prior to Substantial Performance of the Work,
the Owner shall pay the Contractor the holdback amount retained for such subcontract work, or the Products supplied by
such Supplier, on the first calendar day following the expiration of the holdback period for such work stipulated in the lien
legislation applicable to the Place of the Work. The Owner may retain out of the holdback amount any sums required by law
to satisfy any liens against the Work or, if permitted by the lien legislation applicable to the Place of the Work, other third
party monetary claims against the Contractor which are enforceable against the Owner.
5.6.2 In the Province of Quebec, where, upon application by the Contractor, the Consultant has certified that the work of a
Subcontractor or Supplier has been performed prior to Substantial Performance of the Work, the Owner shall pay the
Contractor the holdback amount retained for such subcontract work, or the Products supplied by such Supplier, no later
than 30 calendar days after such certification by the Consultant. The Owner may retain out of the holdback amount any
sums required to satisfy any legal hypothecs that have been taken, or could be taken, against the Work or other third party
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monetary claims against the Contractor which are enforceable against the Owner.
5.6.3 Notwithstanding the provisions of the preceding paragraphs, and notwithstanding the wording of such certificates, the
Contractor shall ensure that such subcontract work or Products are protected pending the issuance of a final certificate for
payment and be responsible for the correction of defects or work not performed regardless of whether or not such was
apparent when such certificates were issued.
5.7.2 The Consultant will, no later than 10 calendar days after the receipt of an application from the Contractor for final payment,
review the Work to verify the validity of the application and advise the Contractor in writing that the application is valid or
give reasons why it is not valid.
5.7.3 When the Consultant finds the Contractor’s application for final payment valid, the Consultant will promptly issue a final
certificate for payment.
5.7.4 Subject to the provision of paragraph 10.4.1 of GC 10.4 – WORKERS’ COMPENSATION, and any lien legislation applicable to
the Place of the Work, the Owner shall, no later than 5 calendar days after the issuance of a final certificate for payment, pay
the Contractor as provided in Article A-5 of the Agreement – PAYMENT.
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.1 changes in the Work consisting of additions, deletions or other revisions to the Work by Change Order or Change
Directive, and
.2 changes to the Contract Time for the Work, or any part thereof, by Change Order.
6.1.2 The Contractor shall not perform a change in the Work without a Change Order or a Change Directive.
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GC 6.2 CHANGE ORDER
6.2.1 When a change in the Work is proposed or required, the Consultant will provide the Contractor with a written description
of the proposed change in the Work. The Contractor shall promptly present, in a form acceptable to the Consultant, a
method of adjustment or an amount of adjustment for the Contract Price, if any, and the adjustment in the Contract Time,
if any, for the proposed change in the Work.
6.2.2 When the Owner and Contractor agree to the adjustments in the Contract Price and Contract Time or to the method to be
used to determine the adjustments, such agreement shall be effective immediately and shall be recorded in a Change
Order. The value of the work performed as the result of a Change Order shall be included in the application for progress
payment.
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GC 6.3 CHANGE DIRECTIVE
6.3.1 If the Owner requires the Contractor to proceed with a change in the Work prior to the Owner and the Contractor agreeing
upon the corresponding adjustment in Contract Price and Contract Time, the Owner, through the Consultant, shall issue a
Change Directive.
6.3.2 A Change Directive shall only be used to direct a change in the Work which is within the general scope of the Contract
Documents.
6.3.3 A Change Directive shall not be used to direct a change in the Contract Time only.
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6.3.4 Upon receipt of a Change Directive, the Contractor shall proceed promptly with the change in the Work.
6.3.5 For the purpose of valuing Change Directives, changes in the Work that are not substitutions or otherwise related to each
other shall not be grouped together in the same Change Directive.
6.3.6 The adjustment in the Contract Price for a change carried out by way of a Change Directive shall be determined on the basis
of the cost of the Contractor’s actual expenditures and savings attributable to the Change Directive, valued in accordance
with paragraph 6.3.7 and as follows:
.1 If the change results in a net increase in the Contractor’s cost, the Contract Price shall be increased by the amount of
the net increase in the Contractor’s cost, plus the Contractor’s percentage fee on such net increase.
.2 If the change results in a net decrease in the Contractor’s cost, the Contract Price shall be decreased by the amount of
the net decrease in the Contractor’s cost, without adjustment for the Contractor’s percentage fee.
.3 The Contractor’s fee shall be as specified in the Contract Documents or as otherwise agreed by the parties.
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.4 all Products including cost of transportation thereof;
.5 materials, supplies, Construction Equipment, Temporary Work, and hand tools not owned by the workers, including
transportation and maintenance thereof, which are consumed in the performance of the Work; and cost less salvage
value on such items used but not consumed, which remain the property of the Contractor;
.6 all tools and Construction Equipment, exclusive of hand tools used in the performance of the Work, whether rented
from or provided by the Contractor or others, including installation, minor repairs and replacements, dismantling,
.8 deposits lost;
.9 the amounts of all subcontracts;
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removal, transportation, and delivery cost thereof;
.7 all equipment and services required for the Contractor’s field office;
Any cost due to failure on the part of the Contractor to exercise reasonable care and diligence in the Contractor’s
attention to the Work shall be borne by the Contractor.
6.3.9 The Contractor shall keep full and detailed accounts and records necessary for the documentation of the cost of performing
the Work attributable to the Change Directive and shall provide the Consultant with copies thereof when requested.
6.3.10 For the purpose of valuing Change Directives, the Owner shall be afforded reasonable access to all of the Contractor’s
pertinent documents related to the cost of performing the Work attributable to the Change Directive.
6.3.11 Pending determination of the final amount of a Change Directive, the undisputed value of the Work performed as the result
of a Change Directive is eligible to be included in progress payments.
6.3.12 If the Owner and the Contractor do not agree on the proposed adjustment in the Contract Time attributable to the change
in the Work, or the method of determining it, the adjustment shall be referred to the Consultant for determination.
6.3.13 When the Owner and the Contractor reach agreement on the adjustment to the Contract Price and to the Contract Time, this
agreement shall be recorded in a Change Order.
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6.4.3 If the Consultant finds that the conditions at the Place of the Work are not materially different or that no change in the
Contract Price or the Contract Time is justified, the Consultant will report the reasons for this finding to the Owner and the
Contractor in writing.
6.4.4 If such concealed or unknown conditions relate to toxic and hazardous substances and materials, artifacts and fossils, or
mould, the parties will be governed by the provisions of GC 9.2 – TOXIC AND HAZARDOUS SUBSTANCES, GC 9.3 – ARTIFACTS
6.5.1
6.5.2
AND FOSSILS and GC 9.5 – MOULD.
GC 6.5 DELAYS
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If the Contractor is delayed in the performance of the Work by an action or omission of the Owner, Consultant or anyone
employed or engaged by them directly or indirectly, contrary to the provisions of the Contract Documents, then the
Contract Time shall be extended for such reasonable time as the Consultant may recommend in consultation with the
Contractor. The Contractor shall be reimbursed by the Owner for reasonable costs incurred by the Contractor as the result
of such delay.
If the Contractor is delayed in the performance of the Work by a stop work order issued by a court or other public authority
and providing that such order was not issued as the result of an act or fault of the Contractor or any person employed or
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engaged by the Contractor directly or indirectly, then the Contract Time shall be extended for such reasonable time as the
Consultant may recommend in consultation with the Contractor. The Contractor shall be reimbursed by the Owner for
reasonable costs incurred by the Contractor as the result of such delay.
6.5.3 If the Contractor is delayed in the performance of the Work by:
.1 labour disputes, strikes, lock-outs (including lock-outs decreed or recommended for its members by a recognized
contractors’ association, of which the Contractor is a member or to which the Contractor is otherwise bound),
.2 fire, unusual delay by common carriers or unavoidable casualties,
.3 abnormally adverse weather conditions, or
.4 any cause beyond the Contractor’s control other than one resulting from a default or breach of Contract by the
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Contractor,
then the Contract Time shall be extended for such reasonable time as the Consultant may recommend in consultation with
the Contractor. The extension of time shall not be less than the time lost as the result of the event causing the delay, unless
the Contractor agrees to a shorter extension. The Contractor shall not be entitled to payment for costs incurred by such
delays unless such delays result from actions by the Owner, Consultant or anyone employed or engaged by them directly
or indirectly.
6.5.4 No extension shall be made for delay unless Notice in Writing of the cause of delay is given to the Consultant not later than
10 Working Days after the commencement of the delay. In the case of a continuing cause of delay only one Notice in Writing
shall be necessary.
6.5.5 If no schedule is made under paragraph 2.2.13 of GC 2.2 – ROLE OF THE CONSULTANT, then no request for extension shall
be made because of failure of the Consultant to furnish instructions until 10 Working Days after demand for such
instructions has been made.
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Consultant may reasonably require, submit further interim accounts giving the accumulated amount of the claim and any
further grounds upon which it is based. The party making the claim shall submit a final account after the end of the effects
resulting from the event or series of events.
6.6.5 The Consultant’s findings, with respect to a claim made by either party, will be given by Notice in Writing to both parties
within 30 Working Days after receipt of the claim by the Consultant, or within such other time period as may be agreed by
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the parties.
6.6.6 If such finding is not acceptable to either party, the claim shall be settled in accordance with Part 8 of the General
Conditions – DISPUTE RESOLUTION.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK
OR TERMINATE THE CONTRACT
7.1.1 If the Contractor is adjudged bankrupt, or makes a general assignment for the benefit of creditors because of the
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Contractor’s insolvency, or if a receiver is appointed because of the Contractor’s insolvency, the Owner may, without
prejudice to any other right or remedy the Owner may have, terminate the Contractor’s right to continue with the Work, by
giving the Contractor or receiver or trustee in bankruptcy Notice in Writing to that effect.
7.1.2 If the Contractor neglects to prosecute the Work properly or otherwise fails to comply with the requirements of the Contract
to a substantial degree and if the Consultant has given a written statement to the Owner and Contractor that sufficient
cause exists to justify such action, the Owner may, without prejudice to any other right or remedy the Owner may have,
give the Contractor Notice in Writing that the Contractor is in default of the Contractor’s contractual obligations and instruct
the Contractor to correct the default in the 5 Working Days immediately following the receipt of such Notice in Writing.
7.1.3 If the default cannot be corrected in the 5 Working Days specified or in such other time period as may be subsequently
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agreed in writing by the parties, the Contractor shall be in compliance with the Owner’s instructions if the Contractor:
.1 commences the correction of the default within the specified time, and
.2 provides the Owner with an acceptable schedule for such correction, and
.3 corrects the default in accordance with the Contract terms and with such schedule.
7.1.4 If the Contractor fails to correct the default in the time specified or in such other time period as may be subsequently agreed
in writing by the parties, without prejudice to any other right or remedy the Owner may have, the Owner may:
.1 correct such default and deduct the cost thereof from any payment then or thereafter due the Contractor provided the
Consultant has certified such cost to the Owner and the Contractor, or
.2 terminate the Contractor’s right to continue with the Work in whole or in part or terminate the Contract.
7.1.5 If the Owner terminates the Contractor’s right to continue with the Work as provided in paragraphs 7.1.1 and 7.1.4, the
Owner shall be entitled to:
.1 take possession of the Work and Products at the Place of the Work; subject to the rights of third parties, utilize the
Construction Equipment at the Place of the Work; finish the Work by whatever method the Owner may consider
expedient, but without undue delay or expense, and
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7.2.1 If the Owner is adjudged bankrupt, or makes a general assignment for the benefit of creditors because of the Owner’s
insolvency, or if a receiver is appointed because of the Owner’s insolvency, the Contractor may, without prejudice to any
other right or remedy the Contractor may have, terminate the Contract by giving the Owner or receiver or trustee in
bankruptcy Notice in Writing to that effect.
7.2.2 If the Work is suspended or otherwise delayed for a period of 20 Working Days or more under an order of a court or other
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public authority and providing that such order was not issued as the result of an act or fault of the Contractor or of anyone
directly or indirectly employed or engaged by the Contractor, the Contractor may, without prejudice to any other right or
remedy the Contractor may have, terminate the Contract by giving the Owner Notice in Writing to that effect.
7.2.3 The Contractor may give Notice in Writing to the Owner, with a copy to the Consultant, that the Owner is in default of the
Owner’s contractual obligations if:
.1 the Owner fails to furnish, when so requested by the Contractor, reasonable evidence that financial arrangements
have been made to fulfill the Owner’s obligations under the Contract, or
.2 the Consultant fails to issue a certificate as provided in GC 5.3 – PROGRESS PAYMENT, or
.3 the Owner fails to pay the Contractor when due the amounts certified by the Consultant or awarded by arbitration or
court, or
.4 the Owner violates the requirements of the Contract to a substantial degree and the Consultant, except for GC 5.1 –
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FINANCING INFORMATION REQUIRED OF THE OWNER, confirms by written statement to the Contractor that sufficient
cause exists.
7.2.4 The Contractor’s Notice in Writing to the Owner provided under paragraph 7.2.3 shall advise that if the default is not
corrected within 5 Working Days following the receipt of the Notice in Writing, the Contractor may, without prejudice to any
other right or remedy the Contractor may have, suspend the Work or terminate the Contract.
7.2.5 If the Contractor terminates the Contract under the conditions set out above, the Contractor shall be entitled to be paid for
all work performed including reasonable profit, for loss sustained upon Products and Construction Equipment, and such
other damages as the Contractor may have sustained as a result of the termination of the Contract.
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8.2.2 A party shall be conclusively deemed to have accepted a finding of the Consultant under GC 2.2 – ROLE OF THE
CONSULTANT and to have expressly waived and released the other party from any claims in respect of the particular matter
dealt with in that finding unless, within 15 Working Days after receipt of that finding, the party sends a Notice in Writing of
dispute to the other party and to the Consultant, which contains the particulars of the matter in dispute and the relevant
provisions of the Contract Documents. The responding party shall send a Notice in Writing of reply to the dispute within 10
8.2.3
8.2.4
8.2.5
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Working Days after receipt of such Notice in Writing setting out particulars of this response and any relevant provisions of
the Contract Documents.
The parties shall make all reasonable efforts to resolve their dispute by amicable negotiations and agree to provide, without
prejudice, frank, candid and timely disclosure of relevant facts, information and documents to facilitate these negotiations.
After a period of 10 Working Days following receipt of a responding party’s Notice in Writing of reply under paragraph 8.2.2,
the parties shall request the Project Mediator to assist the parties to reach agreement on any unresolved dispute. The
mediated negotiations shall be conducted in accordance with the Rules for Mediation of Construction Disputes as provided
in CCDC 40 in effect at the time of bid closing.
If the dispute has not been resolved within 10 Working Days after the Project Mediator was requested under paragraph
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8.2.4 or within such further period agreed by the parties, the Project Mediator shall terminate the mediated negotiations
by giving Notice in Writing to the Owner, the Contractor and the Consultant.
8.2.6 By giving a Notice in Writing to the other party and the Consultant, not later than 10 Working Days after the date of
termination of the mediated negotiations under paragraph 8.2.5, either party may refer the dispute to be finally resolved
by arbitration under the Rules for Arbitration of Construction Disputes as provided in CCDC 40 in effect at the time of bid
closing. The arbitration shall be conducted in the jurisdiction of the Place of the Work.
8.2.7 On expiration of the 10 Working Days, the arbitration agreement under paragraph 8.2.6 is not binding on the parties and,
if a Notice in Writing is not given under paragraph 8.2.6 within the required time, the parties may refer the unresolved
dispute to the courts or to any other form of dispute resolution, including arbitration, which they have agreed to use.
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8.2.8 If neither party, by Notice in Writing, given within 10 Working Days of the date of Notice in Writing requesting arbitration in
paragraph 8.2.6, requires that a dispute be arbitrated immediately, all disputes referred to arbitration as provided in
paragraph 8.2.6 shall be
.1 held in abeyance until
(1) Substantial Performance of the Work,
(2) the Contract has been terminated, or
(3) the Contractor has abandoned the Work,
whichever is earlier; and
.2 consolidated into a single arbitration under the rules governing the arbitration under paragraph 8.2.6.
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.2 acts or omissions by the Owner, the Consultant, other contractors, their agents and employees.
9.1.2 Before commencing any work, the Contractor shall determine the location of all underground utilities and structures
indicated in the Contract Documents or that are reasonably apparent in an inspection of the Place of the Work.
9.1.3 Should the Contractor in the performance of the Contract damage the Work, the Owner’s property or property adjacent to
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the Place of the Work, the Contractor shall be responsible for making good such damage at the Contractor’s expense.
9.1.4 Should damage occur to the Work or Owner’s property for which the Contractor is not responsible, as provided in paragraph
9.1.1, the Contractor shall make good such damage to the Work and, if the Owner so directs, to the Owner’s property. The
Contract Price and Contract Time shall be adjusted as provided in GC 6.1 – OWNER’S RIGHT TO MAKE CHANGES, GC 6.2 –
CHANGE ORDER and GC 6.3 – CHANGE DIRECTIVE.
9.2.4 Unless the Contract expressly provides otherwise, the Owner shall be responsible for taking all necessary steps, in
accordance with applicable legislation in force at the Place of the Work, to dispose of, store or otherwise render harmless
toxic or hazardous substances which were present at the Place of the Work prior to the Contractor commencing the Work.
9.2.5 If the Contractor
.1 encounters toxic or hazardous substances at the Place of the Work, or
.2 has reasonable grounds to believe that toxic or hazardous substances are present at the Place of the Work,
which were not brought to the Place of the Work by the Contractor or anyone for whom the Contractor is responsible and
which were not disclosed by the Owner or which were disclosed but have not been dealt with as required under paragraph
9.2.4, the Contractor shall
.3 take all reasonable steps, including stopping the Work, to ensure that no person’s exposure to any toxic or hazardous
substances exceeds any applicable time weighted levels prescribed by applicable legislation at the Place of the Work,
and
.4 immediately report the circumstances to the Consultant and the Owner in writing.
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substances were brought onto the place of the Work by the Contractor or anyone for whom the Contractor is responsible, the
Contractor shall promptly at the Contractor’s own expense:
.1 take all necessary steps, in accordance with applicable legislation in force at the Place of the Work, to safely remove and
dispose the toxic or hazardous substances;
.2 make good any damage to the Work, the Owner’s property or property adjacent to the place of the Work as provided in
paragraph 9.1.3 of GC 9.1 – PROTECTION OF WORK AND PROPERTY;
9.2.9
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.3 reimburse the Owner for reasonable costs incurred under paragraph 9.2.6; and
.4 indemnify the Owner as required by GC 12.1 – INDEMNIFICATION.
If either party does not accept the expert’s findings under paragraph 9.2.6, the disagreement shall be settled in accordance
with Part 8 of the General Conditions – Dispute Resolution. If such disagreement is not resolved promptly, the parties shall act
immediately in accordance with the expert’s determination and take the steps required by paragraph 9.2.7 or 9.2.8 it being
understood that by so doing, neither party will jeopardize any claim that party may have to be reimbursed as provided by GC
9.2 – TOXIC AND HAZARDOUS SUBSTANCES.
GC 9.5 MOULD
9.5.1 If the Contractor or Owner observes or reasonably suspects the presence of mould at the Place of the Work, the remediation of
which is not expressly part of the Work,
.1 the observing party shall promptly report the circumstances to the other party in writing, and
.2 the Contractor shall promptly take all reasonable steps, including stopping the Work if necessary, to ensure that no person
suffers injury, sickness or death and that no property is damaged as a result of exposure to or the presence of the mould,
and
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.2 reimburse the Contractor for the cost of taking the steps under paragraph 9.5.1.2 and making good any damage to the
Work as provided in paragraph 9.1.4 of GC 9.1 – PROTECTION OF WORK AND PROPERTY, and
.3 extend the Contract Time for such reasonable time as the Consultant may recommend in consultation with the Contractor
and the expert referred to in paragraph 9.5.1.3 and reimburse the Contractor for reasonable costs incurred as a result of
the delay, and
.4 indemnify the Contractor as required by GC 12.1 – INDEMNIFICATION.
9.5.4
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If either party does not accept the expert’s finding under paragraph 9.5.1.3, the disagreement shall be settled in accordance
with Part 8 of the General Conditions – DISPUTE RESOLUTION. If such desagreement is not resolved promptly, the parties shall
act immediately in accordance with the expert’s determination and take the steps required by paragraphs 9.5.2 or 9.5.3, it
being understood that by so doing neither party will jeopardize any claim the party may have to be reimbursed as provided
by GC 9.5 – MOULD.
all other necessary approvals and permits, except for the permits and fees referred to in paragraph 10.2.3 or for which the
Contract Documents specify as the responsibility of the Contractor.
10.2.3 The Contractor shall be responsible for the procurement of permits, licences, inspections, and certificates, which are necessary
for the performance of the Work and customarily obtained by contractors in the jurisdiction of the Place of the Work after the
issuance of the building permit. The Contract Price includes the cost of these permits, licences, inspections, and certificates,
and their procurement.
10.2.4 The Contractor shall give the required notices and comply with the laws, ordinances, rules, regulations, or codes which are or
become in force during the performance of the Work and which relate to the Work, to the preservation of the public health,
and to construction safety.
10.2.5 The Contractor shall not be responsible for verifying that the Contract Documents are in compliance with the applicable laws,
ordinances, rules, regulations, or codes relating to the Work. If the Contract Documents are at variance therewith, or if,
subsequent to the time of bid closing, changes are made to the applicable laws, ordinances, rules, regulations, or codes which
require modification to the Contract Documents, the Contractor shall advise the Consultant in writing requesting direction
immediately upon such variance or change becoming known. The Consultant will make the changes required to the Contract
CCDC 2MA – 2016 26
Note: CCDC 2MA is protected by copyright. Use of CCDC 2MA not containing a CCDC 2MA copyright seal constitutes an infringement of copyright. Only sign this contract if the
document cover page bears a CCDC 2MA copyright seal to demonstrate that it is intended by the parties to be an accurate and unamended version of CCDC 2MA – 2016 except
to the extent that any alterations, additions or modifications are set forth in supplementary conditions.
Documents as provided in GC 6.1 – OWNER’S RIGHT TO MAKE CHANGES, GC 6.2 – CHANGE ORDER and GC 6.3 – CHANGE
DIRECTIVE.
10.2.6 If the Contractor fails to advise the Consultant in writing; and fails to obtain direction as required in paragraph 10.2.5; and
performs work knowing it to be contrary to any laws, ordinances, rules, regulations, or codes; the Contractor shall be
responsible for and shall correct the violations thereof; and shall bear the costs, expenses and damages attributable to the
failure to comply with the provisions of such laws, ordinances, rules, regulations, or codes.
10.2.7 If, subsequent to the time of bid closing, changes are made to applicable laws, ordinances, rules, regulations, or codes of
authorities having jurisdiction which affect the cost of the Work, either party may submit a claim in accordance with the
requirements of GC 6.6 – CLAIMS FOR A CHANGE IN CONTRACT PRICE.
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arising out of the Contractor’s performance of the Contract which are attributable to an infringement or an alleged
infringement of a patent of invention by the Contractor or anyone for whose acts the Contractor may be liable.
10.3.2 The Owner shall hold the Contractor harmless against claims, demands, losses, costs, damages, actions, suits, or
proceedings arising out of the Contractor’s performance of the Contract which are attributable to an infringement or an
alleged infringement of a patent of invention in executing anything for the purpose of the Contract, the model, plan or
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design of which was supplied to the Contractor as part of the Contract Documents.
Prior to commencing the Work, again with the Contractor’s application for payment of the holdback amount following
Substantial Performance of the Work and again with the Contractor’s application for final payment, the Contractor shall
provide evidence of compliance with workers’ compensation legislation at the Place of the Work, including payments due
thereunder.
At any time during the term of the Contract, when requested by the Owner, the Contractor shall provide such evidence of
compliance by the Contractor and Subcontractors.
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PART 11 INSURANCE AND CONTRACT SECURITY
GC 11.1 INSURANCE
11.1.1 Without restricting the generality of GC 12.1 – INDEMNIFICATION, the Contractor shall provide, maintain and pay for the
following insurance coverages, the minimum requirements of which are specified in CCDC 41 – CCDC Insurance Requirements
in effect at the time of bid closing except as hereinafter provided:
.1 General liability insurance in the name of the Contractor and include, or in the case of a single, blanket policy, be
endorsed to name, the Owner and the Consultant as insureds but only with respect to liability, other than legal liability
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arising out of their sole negligence, arising out of the operations of the Contractor with regard to the Work. General
liability insurance shall be maintained from the date of commencement of the Work until one year from the date of
Substantial Performance of the Work. Liability coverage shall be provided for completed operations hazards from the
date of Substantial Performance of the Work, as set out in the certificate of Substantial Performance of the Work, on an
ongoing basis for a period of 6 years following Substantial Performance of the Work.
.2 Automobile Liability Insurance from the date of commencement of the Work until one year after the date of Substantial
Performance of the Work.
.3 Aircraft or Watercraft Liability Insurance when owned or non-owned aircraft or watercraft are used directly or indirectly
in the performance of the Work
.4 "Broad form" property insurance in the joint names of the Contractor, the Owner and the Consultant. The policy shall
include as insureds all Subcontractors. The “Broad form” property insurance shall be provided from the date of
commencement of the Work until the earliest of:
(1) 10 calendar days after the date of Substantial Performance of the Work;
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restore the Work. Loss or damage shall not affect the rights and obligations of either party under the Contract
except that the Contractor shall be entitled to such reasonable extension of Contract Time relative to the extent of
the loss or damage as the Consultant may recommend in consultation with the Contractor;
(2) the Contractor shall be entitled to receive from the Owner, in addition to the amount due under the Contract, the
amount which the Owner’s interest in restoration of the Work has been appraised, such amount to be paid as the
restoration of the Work proceeds in accordance with the progress payment provisions. In addition the Contractor
11.1.2
.7
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shall be entitled to receive from the payments made by the insurer the amount of the Contractor’s interest in the
restoration of the Work; and
(3) to the Work arising from the work of the Owner, the Owner’s own forces or another contractor, the Owner shall, in
accordance with the Owner’s obligations under the provisions relating to construction by Owner or other
contractors, pay the Contractor the cost of restoring the Work as the restoration of the Work proceeds and as in
accordance with the progress payment provisions.
Contractors’ Equipment Insurance from the date of commencement of the Work until one year after the date of
Substantial Performance of the Work.
Prior to commencement of the Work and upon the placement, renewal, amendment, or extension of all or any part of the
insurance, the Contractor shall promptly provide the Owner with confirmation of coverage and, if required, a certified true
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copy of the policies certified by an authorized representative of the insurer together with copies of any amending
endorsements applicable to the Work.
11.1.3 The parties shall pay their share of the deductible amounts in direct proportion to their responsibility in regards to any loss for
which the above policies are required to pay, except where such amounts may be excluded by the terms of the Contract.
11.1.4 If the Contractor fails to provide or maintain insurance as required by the Contract Documents, then the Owner shall have the
right to provide and maintain such insurance and give evidence to the Contractor and the Consultant. The Contractor shall pay
the cost thereof to the Owner on demand or the Owner may deduct the cost from the amount which is due or may become
due to the Contractor.
11.1.5 All required insurance policies shall be with insurers licensed to underwrite insurance in the jurisdiction of the Place of the
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Work.
11.1.6 If a revised version of CCDC 41 – INSURANCE REQUIREMENTS is published, which specifies reduced insurance requirements,
the parties shall address such reduction, prior to the Contractor’s insurance policy becoming due for renewal, and record any
agreement in a Change Order.
11.1.7 If a revised version of CCDC 41 – INSURANCE REQUIREMENTS is published, which specifies increased insurance requirements,
the Owner may request the increased coverage from the Contractor by way of a Change Order.
11.1.8 A Change Directive shall not be used to direct a change in the insurance requirements in response to the revision of CCDC 41
– INSURANCE REQUIREMENTS.
GC 12.1 INDEMNIFICATION
12.1.1 Without restricting the parties’ obligation to indemnify as described in paragraphs 12.1.4 and 12.1.5, the Owner and the
Contractor shall each indemnify and hold harmless the other from and against all claims, demands, losses, costs, damages,
actions, suits, or proceedings whether in respect to losses suffered by them or in respect to claims by third parties that arise
out of, or are attributable in any respect to their involvement as parties to this Contract, provided such claims are:
.1 caused by:
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(1) the negligent acts or omissions of the party from whom indemnification is sought or anyone for whose acts or
omissions that party is liable, or
(2) a failure of the party to the Contract from whom indemnification is sought to fulfill its terms or conditions; and
.2 made by Notice in Writing within a period of 6 years from the date of Substantial Performance of the Work as set out in the
certificate of Substantial Performance of the Work issued pursuant to paragraph 5.4.2.2 of GC 5.4 – SUBSTANTIAL
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PERFORMANCE OF THE WORK or within such shorter period as may be prescribed by any limitation statute of the province
or territory of the Place of the Work.
The parties expressly waive the right to indemnity for claims other than those provided for in this Contract.
12.1.2 The obligation of either party to indemnify as set forth in paragraph 12.1.1 shall be limited as follows:
.1 In respect to losses suffered by the Owner and the Contractor for which insurance is to be provided by either party
pursuant to GC 11.1 – INSURANCE, the general liability insurance limit for one occurrence as referred to in CCDC 41 in
effect at the time of bid closing.
.2 In respect to losses suffered by the Owner and the Contractor for which insurance is not required to be provided by either
party in accordance with GC 11.1 – INSURANCE, the greater of the Contract Price as recorded in Article A-4 – CONTRACT
PRICE or $2,000,000, but in no event shall the sum be greater than $20,000,000.
.3 In respect to claims by third parties for direct loss resulting from bodily injury, sickness, disease or death, or to injury to or
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destruction of tangible property, the obligation to indemnify is without limit. In respect to all other claims for indemnity
as a result of claims advanced by third parties, the limits of indemnity set forth in paragraphs 12.1.2.1 and 12.1.2.2 shall
apply.
12.1.3 The obligation of either party to indemnify the other as set forth in paragraphs 12.1.1 and 12.1.2 shall be inclusive of interest
and all legal costs.
12.1.4 The Owner and the Contractor shall indemnify and hold harmless the other from and against all claims, demands, losses, costs,
damages, actions, suits, or proceedings arising out of their obligations described in GC 9.2 – TOXIC AND HAZARDOUS
SUBSTANCES.
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12.1.5 The Owner shall indemnify and hold harmless the Contractor from and against all claims, demands, losses, costs, damages,
actions, suits, or proceedings:
.1 as described in paragraph 10.3.2 of GC 10.3 – PATENT FEES, and
.2 arising out of the Contractor’s performance of the Contract which are attributable to a lack of or defect in title or an alleged
lack of or defect in title to the Place of the Work.
12.1.6 In respect to any claim for indemnity or to be held harmless by the Owner or the Contractor:
.1 Notice in Writing of such claim shall be given within a reasonable time after the facts upon which such claim is based
became known;
.2 should any party be required as a result of its obligation to indemnify another to pay or satisfy a final order, judgment
or award made against the party entitled by this contract to be indemnified, then the indemnifying party upon
assuming all liability for any costs that might result shall have the right to appeal in the name of the party against
whom such final order or judgment has been made until such rights of appeal have been exhausted.
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.4 claims resulting from acts or omissions which occur after the date of Substantial Performance of the Work.
12.2.2 The Contractor waives and releases the Owner from all claims referenced in paragraph 12.2.1.4 except for those referred in
paragraphs 12.2.1.2 and 12.2.1.3 and claims for which Notice in Writing of claim has been received by the Owner from the
Contractor within 395 calendar days following the date of Substantial Performance of the Work.
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12.2.3 Subject to any lien legislation applicable to the Place of the Work, as of the fifth calendar day before the expiry of the lien
period provided by the lien legislation applicable at the Place of the Work, the Owner waives and releases the Contractor from
all claims which the Owner has or reasonably ought to have knowledge of that could be advanced by the Owner against the
Contractor arising from the Owner’s involvement in the Work, including, without limitation, those arising from negligence or
breach of contract in respect to which the cause of action is based upon acts or omissions which occurred prior to or on the
date of Substantial Performance of the Work, except as follows:
.1 claims arising prior to or on the date of Substantial Performance of the Work for which Notice in Writing of claim has been
received by the Contractor from the Owner no later than the sixth calendar day before the expiry of the lien period
provided by the lien legislation applicable at the Place of the Work;
.2 indemnification for claims advanced against the Owner by third parties for which a right of indemnification may be
asserted by the Owner against the Contractor pursuant to the provisions of this Contract;
.3 claims for which a right of indemnity could be asserted by the Owner against the Contractor pursuant to the provisions of
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paragraph 12.1.4 of GC 12.1 – INDEMNIFICATION;
.4 damages arising from the Contractor’s actions which result in substantial defects or deficiencies in the Work. “Substantial
defects or deficiencies” mean those defects or deficiencies in the Work which affect the Work to such an extent or in such
a manner that a significant part or the whole of the Work is unfit for the purpose intended by the Contract Documents;
.5 claims arising pursuant to GC 12.3 – WARRANTY; and
.6 claims arising from acts or omissions which occur after the date of Substantial Performance of the Work.
12.2.4 The Owner waives and releases the Contractor from all claims referred to in paragraph 12.2.3.4 except claims for which Notice
in Writing of claim has been received by the Contractor from the Owner within a period of six years from the date of Substantial
Performance of the Work should any limitation statute of the Province or Territory of the Place of the Work permit such
agreement. If the applicable limitation statute does not permit such agreement, within such shorter period as may be
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prescribed by:
.1 any limitation statute of the Province or Territory of the Place of the Work; or
.2 if the Place of the Work is the Province of Quebec, then Article 2118 of the Civil Code of Quebec.
12.2.5 The Owner waives and releases the Contractor from all claims referenced in paragraph 12.2.3.6 except for those referred in
paragraph 12.2.3.2, 12.2.3.3 and those arising under GC 12.3 – WARRANTY and claims for which Notice in Writing has been
received by the Contractor from the Owner within 395 calendar days following the date of Substantial Performance of the Work.
12.2.6 “Notice in Writing of claim” as provided for in GC 12.2 – WAIVER OF CLAIMS to preserve a claim or right of action which would
otherwise, by the provisions of GC 12.2 – WAIVER OF CLAIMS, be deemed to be waived, must include the following:
.1 a clear and unequivocal statement of the intention to claim;
.2 a statement as to the nature of the claim and the grounds upon which the claim is based; and
.3 a statement of the estimated quantum of the claim.
12.2.7 The party giving “Notice in Writing of claim” as provided for in GC 12.2 – WAIVER OF CLAIMS shall submit within a reasonable
time a detailed account of the amount claimed.
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GC 12.3 WARRANTY
12.3.1 Except for extended warranties as described in paragraph 12.3.6, the warranty period under the Contract is one year from
the date of Substantial Performance of the Work.
12.3.2 The Contractor shall be responsible for the proper performance of the Work to the extent that the design and Contract
12.3.3
12.3.4
12.3.5
12.3.6
Documents permit such performance.
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The Owner, through the Consultant, shall promptly give the Contractor Notice in Writing of observed defects and
deficiencies which occur during the one year warranty period.
Subject to paragraph 12.3.2, the Contractor shall correct promptly, at the Contractor’s expense, defects or deficiencies in
the Work which appear prior to and during the one year warranty period.
The Contractor shall correct or pay for damage resulting from corrections made under the requirements of paragraph
12.3.4.
Any extended warranties required beyond the one year warranty period as described in paragraph 12.3.1, shall be as
specified in the Contract Documents. Extended warranties shall be issued by the warrantor to the benefit of the Owner. The
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Contractor’s responsibility with respect to extended warranties shall be limited to obtaining any such extended warranties
from the warrantor. The obligations under such extended warranties are solely the responsibilities of the warrantor.
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by IBC Form 2100 (including an extension for a standard provincial and territorial form of non-owned
automobile liability policy) and IBC Form 2320. To achieve the desired limit, umbrella or excess
liability insurance may be used. Subject to satisfactory proof of financial capability by the Contractor,
the Owner may agree to increase the deductible amounts.
2. Automobile liability insurance in respect of vehicles that are required by law to be insured under a
3.
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contract by a Motor Vehicle Liability Policy, shall have limits of not less than $5,000,000 inclusive
per occurrence for bodily injury, death and damage to property, covering all vehicles owned or leased
by the Contractor. Where the policy has been issued pursuant to a government-operated automobile
insurance system, the Contractor shall provide the Owner with confirmation of automobile insurance
coverage for all automobiles registered in the name of the Contractor.
Aircraft and watercraft liability insurance with respect to owned or non-owned aircraft and watercraft
(if used directly or indirectly in the performance of the Work), including use of additional premises,
shall have limits of not less than $5,000,000 inclusive per occurrence for bodily injury, death and
damage to property including loss of use thereof and limits of not less than $5,000,000 for aircraft
passenger hazard. Such insurance shall be in a form acceptable to the Owner.
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4. "Broad form" property insurance shall have limits of not less than the sum of 1.1 times Contract Price
and the full value, as stated in the Contract, of Products and design services that are specified to be
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provided by the Owner for incorporation into the Work, with a deductible not exceeding $5,000. The
of Canadian insurance coverage shall not be less than the insurance provided by IBC Forms 4042 and 4047
Engineering (excluding flood and earthquake) or their equivalent replacement. Subject to satisfactory proof of
Companies financial capability by the Contractor, the Owner may agree to increase the deductible amounts.
5. Boiler and machinery insurance shall have limits of not less than the replacement value of the
permanent or temporary boilers and pressure vessels, and other insurable objects forming part of the
Work. The insurance coverage shall not be less than the insurance provided by a comprehensive boiler
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7.1 In addition to the broad form property exclusions identified in IBC forms 4042(1995), and
4047(2000), the Contractor is not required to provide the following insurance coverage:
Asbestos
The Royal Cyber Risk
Architectural
Mould
Institute of Canada
Terrorism