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CCDC 2 vs CCDC 5B (and 5A, 3): Which Construction Contract Should an Owner Pick?

Oct 20, 2026 · 5 min read · Ben Abbasi, PMP

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Part of the Ontario construction contracts guide for owners.

Picking a CCDC construction contract is the first big risk decision an owner makes on a project, and it is often made by default. Here is how CCDC 2, CCDC 3, CCDC 5A and CCDC 5B actually differ, and which one fits which kind of owner.

The four contracts in one paragraph each

CCDC 2 (Stipulated Price Contract). The Canadian Construction Documents Committee describes it as "the industry standard prime contract between Owner and prime Contractor." It sets a single, pre-determined fixed price, or lump sum, for the project. The current edition is CCDC 2 - 2020.

CCDC 3 (Cost Plus Contract). Also a prime contract between the owner and one contractor, but the work is paid on an actual-cost basis plus a percentage or fixed fee. The current edition is CCDC 3 - 2016.

CCDC 5A (Construction Management Contract - for Services). A contract between the owner and a construction manager where the work is performed by trade contractors. The construction manager acts as a restricted agent of the owner, gives advisory services and manages the owner's contracts with the trades.

CCDC 5B (Construction Management Contract - for Services and Construction). The construction manager advises during pre-construction and then performs the work during construction. The base pricing is actual cost plus a percentage or fixed fee, with optional arrangements for a Guaranteed Maximum Price (GMP), GMP plus percentage cost savings, or conversion into a stipulated price contract.

Both construction management forms were updated on June 30, 2025, replacing the 2010 editions, so check which edition your draft is actually built on.

CCDC 2, 5B, 3 and 5A comparedFour columns ordered from most price certainty for the owner (CCDC 2, lump sum) to most owner control and cost exposure (CCDC 5A, owner holds trade contracts). Each column shows price basis, who hires the trades, and when it fits best. More price certainty More owner control & cost risk CCDC 2Stipulated price CCDC 5BCM services + build CCDC 3Cost plus CCDC 5ACM for services PRICE BASISPRICE BASISPRICE BASISPRICE BASIS TRADES HIRED BYTRADES HIRED BYTRADES HIRED BYTRADES HIRED BY FITS WHENFITS WHENFITS WHENFITS WHEN Lump sum,fixed price Cost + fee;GMP optional Actual cost +% or fixed fee CM fee; tradespriced separately Primecontractor Constructionmanager Primecontractor Owner (CMmanages them) Design done,scope stable Fast track,want a cap Scope unclear,speed matters Experiencedowner team
As you move right, the owner gains control over trades and pricing but takes on more of the cost risk. Source: CCDC document descriptions, ccdc.org, 2025; "fits when" rows are BRC's professional view.

Where the risk actually sits

Under CCDC 2 the contractor carries the price risk for the work as drawn. That is the whole point. But the owner still carries design risk: anything missing from the drawings comes back as a change, priced by a contractor who no longer faces competition.

Under CCDC 3 and the base pricing of CCDC 5B, the owner carries cost risk directly. Every dollar of actual cost flows through, plus the fee. What the owner gets in return is earlier construction input, a faster start and full visibility of cost.

CCDC 5A puts the owner closest to the work. The trade contracts are the owner's contracts. The construction manager manages them as a restricted agent, but the owner is the party exposed if a trade fails, claims or goes under.

CCDC 2 vs CCDC 5B: the choice most owners face

For a mid-size commercial or institutional project, the real debate is usually lump sum versus construction management with a GMP. Our slightly contrarian view: a GMP is not a fixed price. It is a cap on a cost-plus contract, and it is only as good as the scope definition, exclusions and contingency rules behind it.

CCDC 5B is attractive when the schedule cannot wait for complete drawings, or when the owner wants a builder at the design table. CCDC 2 still wins when the design is truly complete and the owner values a single number over flexibility.

The 2025 edition of CCDC 5B also lets the owner request an execution plan covering methodology, procurement, self-performed work costs and anticipated cash flow, and it extends the owner's cost audit window to one year, according to a BLG summary of the update. Use both.

Common pitfalls

  • Choosing cost plus without the staff to audit it. CCDC 3 and CCDC 5B only protect you if someone checks the costs. See what happens when nobody does in our cost overrun audit lessons.
  • Tendering CCDC 2 on incomplete drawings. You buy a low number and then pay for the gaps through change orders.
  • Treating 5A as low effort. Holding the trade contracts means holding the coordination, payment and claim exposure.
  • Heavy supplementary conditions. Rewriting the standard form until it is one-sided invites higher prices and disputes. CCDC documents are relied on because they are seen as balanced.

What to do before you pick a form

  1. Rate how complete your design will be at tender: under 50%, 50 to 90%, or fully issued for construction.
  2. Decide what matters most: a fixed number, an early start, or control over trade selection.
  3. Be honest about your in-house capacity to review costs, monthly invoices and trade packages.
  4. If you lean to CCDC 5B, define in writing when and how a GMP will be set, and what sits inside and outside it.
  5. Confirm you are using the current edition (CCDC 2 - 2020, CCDC 3 - 2016, CCDC 5A or 5B - 2025).
  6. Have your construction lawyer review supplementary conditions before tender. This article is not legal advice, so confirm any contract choice with your lawyer.

Frequently asked questions

Is CCDC 5B the same as a GMP contract?

Not by default. CCDC 5B starts on actual cost plus a percentage or fixed fee. A GMP, GMP with shared savings, or conversion to a stipulated price are optional arrangements the parties can agree to.

What is the difference between CCDC 5A and CCDC 5B?

Under 5A the construction manager provides services only and the trade contractors perform the work under the owner's contracts. Under 5B the construction manager also performs the work during construction.

When does CCDC 3 make sense?

When scope cannot be defined well enough to price, such as urgent repairs, renovations with unknown conditions or work that must start immediately, and the owner can audit costs properly.

The bottom line

There is no best CCDC contract, only a best fit for your design maturity, schedule and in-house capacity. Lump sum buys certainty on what is drawn; construction management buys speed and control at the price of cost exposure. Pick deliberately, not by habit, and staff the owner side for the risk you keep.

If you are weighing CCDC 2 against CCDC 5B on an upcoming project, book a 30-minute call and we will walk through the trade-offs from the owner's side.

Sources: CCDC, CCDC 2 - 2020 Stipulated Price Contract; CCDC, CCDC 3 - 2016 Cost Plus Contract; CCDC, CCDC 5A - 2025 Construction Management Contract for Services; CCDC, CCDC 5B - 2025 Construction Management Contract for Services and Construction; CCDC, Documents; BLG, 2025 CCDC construction contract updates. This article is general information, not financial or legal advice.

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