What is a construction management contract? What is the difference between CCDC5A and CCDC5B?

A construction management contract hires a Construction Manager (CM) to plan, coordinate, and manage a project on the owner’s behalf, instead of a traditional “single GC for a fixed price” model.

What is a construction management contract?

Under a construction management contract, the CM typically:

• Assists with budgeting, scheduling, tendering, and constructibility during pre‑construction.

• Manages trade procurement, coordination, site meetings, and payment certification during construction.

• Is usually paid a fee (often a percentage) rather than a single lump‑sum bid price, and the owner often sees more open‑book costing.

It’s used when the owner wants early contractor input, more flexibility, and more transparency on costs, rather than a fully defined design tendered for a stipulated price.

CCDC 5A vs CCDC 5B – key differences

Both are standard Canadian construction management contracts, but they allocate risk very differently.

CCDC 5A – for Services (CM as advisor)

• CM provides services only (pre‑con and construction management).

• Owner signs contracts directly with all trade contractors (often on CCDC 17).

• CM does not perform the work or hold subcontracts; it coordinates and advises.

• Owner carries most risk for trade performance, cost overruns (subject to budget control), and coordination failures, but also has maximum transparency and control.

CCDC 5B – for Services and Construction (CM at Risk)

• CM provides services and acts as the constructor: it contracts with the trades and is responsible for carrying out the work.

• Owner has one main contract with the CM, not multiple trade contracts.

• Typically set up as cost‑plus fee, sometimes with a Guaranteed Maximum Price (GMP) or the option to convert to a stipulated price.

• CM takes on more risk for performance, schedule, and sometimes cost (with a GMP), while the owner has less admin burden and a clearer single point of responsibility.

For something like a mid‑size TI where the owner wants to stay very involved and is comfortable holding trade contracts, 5A can work well; where the owner wants one party “on the hook” for construction and less contract admin, 5B (or even a straight CCDC 2) tends to be more practical