Which type of contract is represented by CCDC 2?

CCDC 2 represents a Stipulated Price Contract, which is a commonly used form established by the Canadian Construction Documents Committee (CCDC). This type of contract specifies a fixed price for the entirety of the construction work outlined in the contract documents.

In a Stipulated Price Contract, the contractor agrees to complete the work for a set amount, which fosters clarity in budgeting for both the client and the contractor. This arrangement allows project owners to have better control over their project costs as they are not subject to fluctuations in material and labor costs after the contract is signed.

This type of contract is favored in situations where the scope of work is clearly defined, and both parties have a mutual understanding of the deliverables. It provides predictable outcomes and establishes clear expectations, making it suitable for many construction projects.

While other types of contracts such as Cost Plus or Unit Price have their specific applications, they typically introduce variability in pricing that can lead to unexpected costs for the owner. Design-Build contracts shift the responsibility of both design and construction to a single entity, creating a different contractual dynamic altogether.