CCDC 32: What Canada's New Progressive Design-Build Contract Means for Owners and Contractors

The Canadian Construction Documents Committee has released CCDC 32 – 2026 Progressive Design-Build Contract, its first standard-form contract developed specifically for progressive design-build projects.

As progressive design-build becomes more common, CCDC 32 gives owners and contractors a standard contract to work from. Understanding how it allocates risk, structures pricing and governs project development is important for owners, contractors and consultants involved in these projects.

How Progressive Design-Build Works

Progressive design-build separates a project into two distinct phases: the Project Development Phase and the Design/Construction Phase. Unlike traditional design-build, where scope, schedule and price are generally established before construction begins, this approach allows those elements to evolve during the Project Development Phase.

During the Project Development Phase, the parties work together to refine the design, establish the construction schedule, develop project costs and identify potential risks. As part of this process, the design-builder submits a preliminary schedule outlining major project milestones, together with periodic submissions known as Project Gates.

At each Project Gate, the parties review the project’s design, scope, schedule, pricing and risks before deciding whether to proceed to the next stage of development. The number and timing of Project Gates can be tailored to reflect the project’s size and complexity, creating structured decision points throughout the Project Development Phase.

As the design progresses, project costs are refined using development drawings, labour and material pricing, contingencies and anticipated market conditions. Throughout the Project Development Phase, the proposed contract price continues to evolve as the design is refined, project risks are identified and owner requirements become clearer. This phased approach allows the final contract price to more accurately reflect the project’s scope and construction risks.

Once the owner accepts the Final Project Proposal, the project transitions into the Design/Construction Phase, where the design-builder completes the design and construction work in accordance with the agreed scope, schedule and pricing framework.

Why CCDC 32 Matters

Before CCDC 32, parties using progressive design-build typically relied on customized versions of CCDC 14 or heavily negotiated supplementary conditions. As a result, each project often started from a different contractual framework.

CCDC 32 provides a consistent starting point while still allowing parties to tailor the contract to the project’s specific risks and commercial objectives. By establishing a dedicated framework for progressive design-build, CCDC 32 promotes greater consistency in how these projects are structured.

When Progressive Design-Build Makes Sense

Progressive design-build is best suited to projects involving technical complexity or significant uncertainty, including those with evolving owner requirements, challenging site conditions, complex regulatory approvals or long-lead procurement items.

For owners, the model provides greater visibility into project development before committing to construction. For contractors, early involvement creates opportunities to provide construction, pricing and scheduling input while reducing the need to price significant unknown risks at the bidding stage.

What to Consider Before Signing

The flexibility offered by progressive design-build also creates additional responsibilities for both owners and contractors. Owners should remain actively engaged throughout the Project Development Phase, while contractors should carefully document pricing assumptions, exclusions and identified risks as the project evolves.

Before entering into a CCDC 32 contract, parties should carefully consider:

• how Project Gates will operate throughout the project;
• the required contents of the Final Project Proposal;
• pricing and cost-estimating mechanisms;
• Early Work authorizations;
• termination and off-ramp rights;
• design ownership and intellectual property provisions;
• insurance obligations and allocation of liability; and
• supplementary conditions modifying the standard form.

Addressing these issues early can reduce uncertainty, improve collaboration and help prevent disputes as the project progresses.

The Bottom Line

CCDC 32 reflects the growing use of collaborative project delivery in Canada's construction industry. By separating project development from construction, it allows owners and contractors to make more informed decisions, identify and manage project risks earlier and establish pricing with greater confidence.

HOW WE CAN HELP

RAR Litigation advises owners, contractors, consultants and other construction industry participants on procurement strategy, contract drafting and construction risk management. We frequently assist clients in front-end review and negotiation of contracts to help identify and address legal risks before construction begins.

Contact us for strategic advice on progressive design-build procurement, CCDC contract review and construction-related disputes.