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Insurance Coverage in CCDC Contracts

For the GCs among you:

We have a new CCDC41 2020. You may think it applies only to a CCDC2 2020 form of contract, but you would be wrong. For example, section 11.1.1 of CCDC2 2008 states:

… 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

Section 11.1.1 of CCDC5B 2010 is identical and, I expect, all the other CCDC contracts are the same or similar. The point is: subject to any supplementary conditions, CCDC41 2020 governs insurance regardless which CCDC form of contract you use.

The insurance coverage in CCDC 41 increases most limits from $5mil to $10mil. The extra premium should be included in your tenders and your insurance coverage should comply.

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Omnibus

Most court decisions will deal with one to four issues of law. Some deal with more, but usually those decisions are very long. In University Plumbing v. Solstice Two Limited, a 2019 decision of the Ontario Superior Court of Justice, the judge dealt with eight discrete issues in a mere 31 paragraphs.

Set Stage

A contractor performed mechanical work for a corporate developer and was not fully paid for its work. Notwithstanding the developer’s numerous promises to pay and a request, with which the contractor had initially complied, that the contractor wait until the developer received anticipated funds from Tarion Warranty Corporation, the developer still did not pay. Finally, the contractor commenced a trust action against the developer and its two directors, who were also officers, for $103,000, which, with accrued interest, had ballooned to $345,000.

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