Owner Contractor Construction Agreement Template for Canada

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Key Requirements PROMPT example:

Owner Contractor Construction Agreement

"I need an Owner Contractor Construction Agreement for a new commercial office building project in Ontario, with construction starting March 2025, including specific provisions for sustainable building practices and LEED certification requirements."

Document background
The Owner Contractor Construction Agreement is a fundamental document used in Canadian construction projects to establish a legally binding relationship between the property owner and the construction contractor. It is particularly suitable for medium to large-scale construction projects where detailed terms and conditions are necessary to govern the construction process. The agreement incorporates essential elements required by Canadian federal and provincial legislation, including compliance with the Construction Act, prompt payment provisions, and lien rights. It addresses critical aspects such as payment terms, project timelines, change management, quality standards, and dispute resolution procedures. This document type is designed to protect both parties' interests while ensuring smooth project execution within the Canadian legal framework.
Suggested Sections

1. Parties: Identification and details of the Owner and Contractor, including legal names and addresses

2. Background: Context of the agreement, including project overview and parties' intentions

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of the work to be performed by the Contractor

5. Contract Price and Payment: Payment terms, schedule of values, progress payments, and holdbacks as per provincial legislation

6. Time for Performance: Project schedule, completion dates, and provisions for delays and extensions of time

7. Changes in the Work: Process for change orders, change directives, and pricing of changes

8. Contractor's Obligations: General and specific obligations including workmanship, supervision, and site safety

9. Owner's Obligations: Owner's responsibilities including site access, permits, and timely decisions

10. Insurance and Bonds: Required insurance coverage and performance/payment bonds

11. Indemnification: Mutual and specific indemnities between parties

12. Warranty: Warranty obligations and duration for completed work

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Process for resolving disputes including mediation and arbitration

15. General Provisions: Standard contract clauses including notices, assignment, and governing law

Optional Sections

1. Hazardous Materials: Include when project involves handling or disposal of hazardous materials

2. Substantial Performance: Include for provinces using this concept, defining criteria and certification process

3. Subcontractors: Include when subcontracting is permitted, specifying approval requirements and flow-down provisions

4. Equipment and Materials: Include when significant owner-supplied materials or equipment are involved

5. Site Conditions: Include when site conditions may be uncertain or require special attention

6. Environmental Protection: Include for projects with significant environmental considerations

7. Indigenous Rights: Include when project is on or affects Indigenous lands or rights

8. Commissioning: Include for projects requiring detailed commissioning procedures

9. Force Majeure: Include when specific force majeure events need detailed treatment

10. Confidentiality: Include when project involves sensitive information or proprietary designs

Suggested Schedules

1. Schedule A - Scope of Work: Detailed specifications, drawings, and technical requirements

2. Schedule B - Contract Price Breakdown: Detailed breakdown of contract price, unit prices, and allowances

3. Schedule C - Project Schedule: Detailed construction schedule including milestones and critical path

4. Schedule D - Required Insurance: Specific insurance requirements including coverage limits

5. Schedule E - Key Personnel: List of key personnel from both Owner and Contractor

6. Schedule F - Forms: Standard forms for change orders, payment applications, and certificates

7. Schedule G - Site Rules and Procedures: Site-specific rules, safety procedures, and access protocols

8. Schedule H - Warranty Requirements: Detailed warranty requirements and procedures

9. Appendix 1 - Drawings: Complete set of construction drawings

10. Appendix 2 - Technical Specifications: Detailed technical specifications for all work components

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Residential Construction

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Facilities

Retail Development

Hospitality

Manufacturing

Energy and Resources

Transportation

Public Sector

Mixed-Use Development

Relevant Teams

Legal

Operations

Construction

Project Management

Commercial

Procurement

Risk Management

Finance

Development

Compliance

Quality Assurance

Environmental

Contract Administration

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Chief Operating Officer

Development Director

Construction Manager

Procurement Manager

Risk Manager

Commercial Manager

Property Developer

Facility Manager

Project Control Manager

Chief Financial Officer

General Counsel

Operations Director

Site Superintendent

Quality Assurance Manager

Environmental Compliance Officer

Industries
Construction Act (formerly Construction Lien Act): Provincial legislation governing payment terms, liens, trust provisions, and dispute resolution in construction projects. Essential for protecting contractors' rights to payment and owners' interests.
Prompt Payment Act: Recently implemented in several provinces, this legislation establishes strict timelines for payment on construction projects and introduces adjudication processes for payment disputes.
Occupational Health and Safety Act: Federal and provincial legislation setting out workplace safety requirements, particularly important in construction projects where safety risks are significant.
Workers' Compensation Act: Provincial legislation requiring contractors to maintain workers' compensation insurance coverage for their employees.
Environmental Protection Act: Federal and provincial environmental regulations affecting construction activities, including waste management, emissions, and protection of natural resources.
Building Code Act: Provincial legislation establishing minimum standards for construction, including technical requirements and necessary permits.
Insurance Act: Provincial legislation governing insurance requirements, including liability insurance and builder's risk insurance necessary for construction projects.
Employment Standards Act: Provincial legislation setting minimum employment standards, including wages, hours of work, and leave entitlements for workers.
Canada Labour Code: Federal legislation governing labor relations and working conditions, applicable to federally regulated construction projects.
Excise Tax Act (GST/HST): Federal tax legislation affecting billing and payment procedures in construction contracts.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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