October 13, 2026
CCDC 14 Design-Build Contract Explained for Ontario Owners
CCDC 14 is the standard Canadian contract for design-build at a fixed price. You, the owner, sign one contract with one firm, the design-builder, which both designs your project and builds it for a single stipulated price. You describe what you need in a document called the Owner’s Statement of Requirements, and the design-builder hires the architects and engineers, produces the drawings and delivers the building. Since 2026 there are two editions on sale from the Canadian Construction Documents Committee: CCDC 14 – 2013 and the new CCDC 14 – 2026. Either can turn up on your desk.
What follows is written from an owner’s side of the table, not as legal advice. A construction lawyer should draft your supplementary conditions.
What CCDC 14 is and who does what
One price for design and construction
The CCDC’s own description of the 2026 form is a “traditional design-build prime contract between Owner and Design-Builder where the Design-Builder performs design services and construction under one agreement for a single pre determined stipulated price.”
Under CCDC 14 the price is agreed before the design is finished, often before it’s started in any detail. The design-builder takes the risk that its design costs more to build than it priced. You take the risk that a design you don’t control line by line delivers less than you had in mind.
That’s the main difference from CCDC 2, the stipulated price contract most owners know. Under CCDC 2 you hire your own architect and engineers, they finish the design, and contractors bid on it. Under CCDC 14 the design team works for the design-builder, and your influence over the design runs through the Statement of Requirements and your reviews.
The roles
CCDC 14 names more parties than CCDC 2. The owner’s and design-builder’s duties below are as the CCDC lists them on its CCDC 14 – 2013 page; that page names the other three roles without describing them, so those rows are our plain reading.
| Role | Contracted to | What they do under CCDC 14 |
|---|---|---|
| Owner | The design-builder, under CCDC 14 | Provides project information, makes decisions, interprets the Owner’s Statement of Requirements, reviews and approves the Construction Documents, can require inspection or testing of the Work |
| Design-Builder | The owner, under the contract | Controls the design services and the Work, reviews the Statement of Requirements, develops the Construction Documents, engages the consultants and subcontractors |
| Consultant | The design-builder | The architect or engineer who designs the project, under a CCDC 15 contract with the design-builder |
| Payment Certifier | Named in the contract | Certifies payment and, under the 2026 edition, confirms when the Work is Ready-for-Takeover |
| Owner’s Advisor | The owner (optional) | Advises the owner, if one is appointed |
The Consultant works for the design-builder and designs to the design-builder’s price. The Owner’s Advisor reads the drawings on your side. The form makes room for one without requiring one, and on a project of any size owners usually appoint an architect, engineer or owner’s representative to the role.
Which edition you’re being offered
Both editions are listed on the CCDC documents page, and the 2013 form remains in use alongside the new one (Osler, July 2026). The year is on the cover page, so check it first: a heavily amended 2013 form can behave quite differently from an unamended 2026 one. The CCDC’s guide to the 2013 form is CCDC 44 – 2016.
The Owner’s Statement of Requirements decides what you get
Why it matters more than anything else in the contract
Under CCDC 2 your architect’s drawings and specifications describe the building. Under CCDC 14 the Owner’s Statement of Requirements does that job, and it’s written before the drawings exist. The design-builder prices the project from it, designs to it and, if a dispute comes up later, measures what it owes you against it.
If it says “Class A office finishes” and nothing else, you’ll get the design-builder’s reading of Class A at the design-builder’s price. If it names the ceiling height, the floor loading, the mechanical system, the finish standard by room type and the energy target, you’ll get those, or a change order if you later ask for something different.
What to put in it
A useful Statement of Requirements usually covers:
- The program. Every space, its size, its use, how many people it holds and what it has to sit next to.
- Performance. Floor loads, ceiling heights, clear spans, column grid limits, acoustic separation, vibration limits where they matter.
- Building systems. Heating and cooling approach, ventilation rates, electrical capacity and spare capacity, emergency power, plumbing fixture counts, fire protection, security and data.
- Quality. A finish standard by room type, approved or excluded materials, and named products where you have a reason (maintenance staff trained on a system, a corporate standard).
- Energy and sustainability. The target, the rating system if any, and who pays for certification.
- Site and approvals. Geotechnical, survey and environmental reports, and who carries the site plan and permit applications.
- Operations. Manuals, training, spare parts and as-built drawings at handover.
- Schedule. The date you need the building, and any phasing or partial occupancy.
How detailed to make it
Aim for enough detail that two design-builders reading it would price roughly the same building, but stop short of designing the project yourself, or you end up paying a design-builder for design risk you’ve taken back. Allow time to write it: the people who’ll use, run and pay for the building rarely agree on the first pass, and those decisions cost far less now than after the price is fixed.
What happens to anything left out
If a requirement isn’t in the contract documents, the design-builder generally isn’t bound to deliver it. Asking for it later is a change, priced by the design-builder with no competing bid to compare against. Ambiguity works the same way: the owner interprets the Statement of Requirements, but an interpretation the design-builder disagrees with can still become a claim. Plain, measurable requirements (“minimum 3.0 m clear to underside of structure”) hold up better than adjectives (“generous ceiling heights”).
Your role while the design develops
After signing, the design-builder submits the design at set stages, and someone on your side checks each submission against the Statement of Requirements within the time the contract allows. Two habits help:
- Review against the requirements, not your preferences. If a submission meets the Statement of Requirements but isn’t what you’d have chosen, asking for something else is a change. Decide whether it’s worth paying for before you ask.
- Answer on time. A design-builder waiting on your approval can claim the delay. Name one person who can make decisions and give them the authority to do it, as we’ve written about in the quiet cost of slow decisions.
Because the design isn’t complete when the price is set, it’s harder to tell what’s new scope and what was always included. Keep a change log from the first design review, and read where change orders come from before the first one arrives.
What changed in CCDC 14 – 2026
The 2026 edition replaces the 2013 form as the current one. It was released alongside an updated CCDC 15 (the contract between the design-builder and its consultant) and two new forms for progressive design-build, CCDC 32 and CCDC 33. The table summarizes the changes that matter most to an owner, as described by Fasken (June 2026), Clark Wilson (June 2026) and Osler (July 2026). Clause numbers are given as those firms give them.
| Change | What’s new in 2026 | What it means for the owner |
|---|---|---|
| Effective Date | A new defined term: the date of the contract in the Articles of Agreement | One clear start date for time, services and payment |
| Ready-for-Takeover (GC 12.1) | A new milestone with set conditions, one of which is Substantial Performance; confirmed by the Payment Certifier | Handover, warranty and waiver of claims run from Ready-for-Takeover; holdback still runs from substantial performance |
| Contract Time | Runs from the Effective Date to Ready-for-Takeover | The completion date you agree is the takeover date, not just substantial performance |
| Owner’s consultants and owner design (GC 2.6) | Expressly covers the owner hiring its own consultants or doing its own design | Coordination duties fall on you; the design-builder must flag deficiencies in your design |
| Instruments of Service (GC 1.1.9–1.1.11) | Copyright in design deliverables stays with whoever prepared them | You can use the documents for the project’s use and occupancy; altering them puts the risk on you |
| Insurance deductibles (GC 11.1.3) | Deductibles shared in proportion to responsibility for the loss | Where the responsible party isn’t bound by the contract, the owner pays the deductible |
| Limitation of liability | New or substantially revised caps for insurable and uninsurable risks | Read the caps against your project’s value and your lender’s requirements |
| Insurance amounts | Expected coverage amounts increased | Confirm the cost is in the price and the limits suit the project |
Ready-for-Takeover and substantial performance
Under the 2013 form, Substantial Performance of the Work was the main completion milestone. The 2026 form adds Ready-for-Takeover, in line with CCDC 2 – 2020 and the 2025 construction management forms.
According to Osler, Ready-for-Takeover is reached when a list of conditions is met, including substantial performance certified by the Payment Certifier, final cleaning and waste removal, and delivery of operations and maintenance documents to the owner. The warranty period and the cut-off for waiving claims now start at Ready-for-Takeover. Holdback release still follows substantial performance, because that’s what Ontario’s Construction Act ties it to.
For an owner this is mostly good. Substantial performance is a statutory test of how much work is left, measured in dollars, and a building can pass it without being ready to use. The two dates can now differ, so your schedule, lender and lease commitments should say which one they mean. If you plan to move in or start fit-out before Ready-for-Takeover, agree in writing how that works and who insures what.
Owner’s consultants and owner-provided design
The 2013 form assumed the design-builder’s team did almost all of the design. The 2026 GC 2.6 deals openly with the owner hiring its own consultants or supplying part of the design itself. Clark Wilson notes the owner has to coordinate with the design-builder when engaging its consultants, and the consultants’ contracts have to be compatible. Fasken notes the design-builder has to coordinate with owner-provided design and identify and address deficiencies in it.
Owners often do bring their own design: a tenant’s fit-out designer, a process engineer for an industrial line, or a concept design done before the design-builder was chosen. Each is design you’re responsible for, so list every owner-supplied element in the contract and say who coordinates it.
Who owns the design
The 2026 form adds a defined term, Instruments of Service, for the design deliverables required by your Statement of Requirements and prepared by or for the design-builder. Per Clark Wilson, copyright stays with the party that prepared them. You can keep copies for the use and occupancy of the project, and if you modify them you indemnify the design-builder against the consequences. The companion CCDC 15 – 2026 gives the owner and design-builder a non-exclusive licence to use the consultant’s work for the project once the fees and reimbursable expenses have been paid.
In practice the drawings stay with the design team and you hold a right to use them, which is usually enough for a single building. If you plan to build the same thing on another site, or expand later with a different team, deal with it in the supplementary conditions.
Insurance deductibles and limits of liability
The deductible split under GC 11.1.3 is in the FAQ below; it matters most if you’ll have your own separate contractors on site. The liability caps for insurable and uninsurable risks are new or substantially revised, so read them against your project’s value with your lawyer and insurer.
CCDC 14 vs CCDC 2 vs CCDC 32
Owners considering design-build are usually choosing between three forms: CCDC 2 (you design, then tender), CCDC 14 (fixed-price design-build) and CCDC 32 – 2026, the new progressive design-build contract, which picks the design-builder first and fixes the price later.
| CCDC 2 – 2020 | CCDC 14 – 2026 | CCDC 32 – 2026 | |
|---|---|---|---|
| What you sign | Construction contract; separate contract with your own architect | One contract for design and construction | One contract, in two phases |
| Who designs | Your consultants | Design-builder’s consultants (plus any you bring, under GC 2.6) | Design-builder’s consultants, developed with you at each gate |
| When the price is fixed | At tender, on complete documents | At signing, on the Statement of Requirements | At the Final Project Proposal, after design and pricing are developed |
| How the design-builder or contractor is chosen | Usually lowest compliant bid | Usually price plus proposal | Usually qualifications |
| Your control over design | High | Lower: requirements and reviews | Moderate: you accept or redirect at each gate |
| Your way out before construction | Don’t award the tender | None built in; termination provisions only | Terminate at a gate, paying for work done |
| Best suited to | Complete designs, competitive tender | Clear requirements, wanting one party responsible | Complex or uncertain projects where you want to shape the design before committing |
How CCDC 32 works
CCDC 32 has a Project Development Phase and a Design/Construction Phase (Fasken). In the first, the design-builder develops design, cost and schedule in stages, and at each Project Gate submits a proposal with the design to date, a construction cost estimate, an estimated schedule and any proposed refinements to the Statement of Requirements. You accept and move on, ask for changes, or terminate. Clark Wilson describes four gates, running from strategy and feasibility through to construction documents. Fasken notes the gates can be customized.
At the last gate the design-builder submits a Final Project Proposal with a stipulated price. If you accept, construction proceeds on that price; Clark Wilson describes this as moving to a CCDC 14 contract for the second phase. Before then, you can authorize Early Work so the schedule doesn’t wait for the price.
The development-phase fee can be fixed, time-based or a mix. If you terminate before accepting the final proposal, the design-builder is paid for the services and work done, plus certain costs (Fasken). Because the full price isn’t known until late, Osler suggests owners may want to add a guaranteed maximum price mechanism through supplementary conditions. The CCDC has published a guide to the form, CCDC 32-G – 2026.
When fixed-price design-build fits
CCDC 14 tends to suit projects where:
- You can describe what you need precisely, in performance terms, without drawings. Industrial buildings, warehouses, repeatable building types and straightforward base buildings are typical.
- One party responsible for both design and construction is worth more to you than control over each design choice.
- Time matters. Design and construction can overlap.
- You have, or can hire, someone to write the requirements and review the design on your behalf.
It tends not to suit:
- Projects where the design is the point, such as a flagship building or a space where the finishes carry your brand.
- Renovations with a lot of unknowns in the existing building. A fixed price has to carry an allowance for what’s behind the walls, so expect it to be priced conservatively.
- Projects where you’ve already done much of the design. You’d be paying for design risk you’ve already taken. A CCDC 2 tender on your own design, or CCDC 32, may suit you better.
The construction management alternatives are in CCDC 5A vs 5B, and how an owner’s representative differs from a construction manager is in owner’s rep or construction manager. All six delivery methods are compared side by side in design-build vs design-bid-build.
Ontario payment rules on a design-build job
Ontario’s Construction Act sets the payment and holdback rules whatever the contract says. The design-builder is your contractor under the Act, so the 2026 rules apply as they would on a CCDC 2 job.
| Rule | What the Act says | What it means on a CCDC 14 project |
|---|---|---|
| Holdback (s. 22) | Hold back 10% of the price of services and materials as they’re supplied | The design is supplied under the same contract, so expect holdback on design invoices too |
| Proper invoice (s. 6.3) | Monthly unless the contract says otherwise; can’t be made conditional on prior certification | The Payment Certifier’s review can’t hold up the invoice clock |
| Deemed proper (s. 6.1(2), from 2026) | An invoice missing information is deemed proper unless you give notice within 7 days | Someone has to check each invoice within a week of receiving it |
| Payment (s. 6.4) | Pay within 28 days of a proper invoice, or give notice of non-payment within 14 days | Set up your approval process to meet these dates every month |
| Substantial performance (s. 2(1)) | Ready for use and can be finished for no more than 3% of the first $1M, 2% of the next $1M and 1% of the balance | Holdback release follows this, not Ready-for-Takeover |
| Annual holdback release (s. 26, from 2026) | Notice within 14 days of each contract anniversary; payment 60 to 74 days after | Multi-year design-build projects release holdback every year |
| Lien period (s. 31(2)) | Liens expire 60 days after the certificate of substantial performance is published | Release of holdback waits for this period to pass |
Three points come up on design-build projects in particular.
The Payment Certifier has to be quick. The design-builder’s invoice can’t be made conditional on the Payment Certifier signing off first, and an invoice you don’t flag within seven days is deemed proper, so the review has to fit inside those windows.
The design fee is part of the contract price. Early invoices are often mostly design, and we’d expect holdback and the annual release to apply to them like any other invoice. On a long project the first anniversary can fall before construction has properly started.
Two completion dates. Track substantial performance for holdback and liens, and Ready-for-Takeover for warranty and handover. The 2026 rules are set out in more detail in our CCDC 2 article.
If you’re borrowing to build, your lender’s draw process also has to fit the 28-day clock. Construction financing in Ontario covers how draws usually work.
What owners put in supplementary conditions
Almost no CCDC 14 contract is signed without supplementary conditions, the project-specific amendments to the standard form. These are the items we’d expect an owner to work through with their lawyer, who does the drafting.
- The Statement of Requirements is complete and in the contract. Every appendix, report and standard it refers to is listed as a contract document, with an order of precedence if they conflict.
- The proposal. If the design-builder’s proposal is a contract document, decide whether it ranks above or below the Statement of Requirements. Owners usually want their requirements to govern where the two differ.
- Owner-supplied design. Every element of design you’re providing is listed, with responsibility for coordination, under GC 2.6.
- Design review. Stages, what’s submitted at each, how long you have to respond, and what your approval does and doesn’t mean (approving a drawing usually shouldn’t make you responsible for the design).
- Changes. How the design-builder prices a change, the markup on its own work and its subcontractors’ work, and how quickly a quote has to come back. A fixed markup agreed now is easier than one negotiated on each change.
- Schedule and completion. The Ready-for-Takeover date, any interim milestones, and liquidated damages if you want them, at a figure that reflects your actual loss.
- Early occupancy. If you’ll occupy or fit out before Ready-for-Takeover, how that works and who insures it.
- Design ownership. A licence wide enough for future renovation, expansion and sale if you need it, beyond the standard use and occupancy.
- Insurance and bonds. Coverage limits that suit the project, professional liability for the design team, and performance and labour and material payment bonds if you want them (CCDC publishes standard bond forms).
- Limitation of liability. The caps, read against the project’s value and your lender’s requirements.
- Owner’s Advisor. Who it is, what they’re authorized to do, and that the design-builder will work with them.
- Payment. The invoice date, what a proper invoice must include, how the Payment Certifier’s review fits the Construction Act deadlines, and the holdback process under the 2026 rules.
- Edition. If you’re being offered the 2013 form, ask why. Some owners have well-tested supplementary conditions for it. If you’re starting fresh, the 2026 form is the current one.
Comparing two design-build proposals is harder than comparing two bids on the same drawings. An independent estimate of what the requirements should cost gives you a basis for the comparison, as we cover in reading a construction estimate. Carry a contingency for owner changes and owner-side risk, even on a fixed price. How much contingency is enough explains how to size it.
Frequently asked questions
Is the 2013 version of CCDC 14 still valid?
Yes. CCDC still lists CCDC 14 – 2013 alongside the 2026 edition, and the 2013 documents remain in use. A contract signed on the 2013 form is a valid contract. The 2026 edition reflects changes made across the CCDC suite since 2013, including Ready-for-Takeover and alignment with prompt payment legislation, so on a new project it’s usually the better starting point.
What’s the difference between CCDC 2 and CCDC 14?
Under CCDC 2 you hire your own architect and engineers, finish the design, and contractors bid a fixed price to build it. Under CCDC 14 one firm designs and builds the project for a fixed price agreed before the design is complete, working from your Owner’s Statement of Requirements. CCDC 2 gives you more control over the design; CCDC 14 gives you one party responsible for both.
What is CCDC 15?
CCDC 15 is the contract between the design-builder and its consultant, usually the architect or engineer who designs the project under a CCDC 14 contract. You don’t sign it, but it matters to you: it sets how the design team works, what they’re liable for and, in the 2026 edition, the licence you receive to use their work once their fees are paid. CCDC 33 is its equivalent for progressive design-build under CCDC 32.
Who pays the insurance deductible?
Under GC 11.1.3 of CCDC 14 – 2026, deductibles are shared between the owner and the design-builder in proportion to their responsibility for the loss. Where the responsible party isn’t bound by the contract, such as one of your own separate contractors, the owner pays the deductible. Your supplementary conditions can change this, and your insurer should see the clause before you sign.
Where to start
If a CCDC 14 contract is on your desk now, start with the Owner’s Statement of Requirements, the cheapest place to fix a gap. Then check the edition, any owner-supplied design under GC 2.6, the change pricing and the payment process. If you’re earlier than that, decide whether fixed-price design-build suits the project at all, or whether CCDC 2 or CCDC 32 would serve you better.
Our experience of design and construction contracts was built over 20+ years at PCL Constructors and Oxford Properties, across $3B+ of projects in office, residential, retail and industrial. We help owners write Statements of Requirements, compare design-build proposals and review the contract before they sign, as part of our independent contract and cost review.