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CCDC2 General Questlons 1. What are the roles contemplated in the CCDC 2020 Contract? 2. How are disputes initially decided under the CCDC 2020 Contract?
CCDC2 General Questlons 1. What are the roles contemplated in the CCDC 2020 Contract? 2. How are disputes initially decided under the CCDC 2020 Contract? 3. What happens if there is a delay? 4. What happens if the contractor wants to increase the contract price? 5. What is the mechanism used by the owner to request changes? Fact Pattern On January 2, 2019, Owns All The Land Ltd. ("Owns All") contracted We Design It Well Architects Inc. ("We Design It") to act as prime consultant on their latest construction project. The project was to build social housing on the land, which We House Everyone Ltd. ("We House") was then going to administer the property on behalf of the province. Given the importance of this project to the government in an election year, they have provided conditional financing of $50,000,000 tied to a specific completion date, which is set to be June 20, 2022. Because of this, in their initial discussions with We Design It, Owns All emphasizes the importance of completing this project on schedule. This, it is decided, will be an important criteria in the selection of bids and reflected in the call for tenders. Through February 2020, the tender process unfolds and the following bids are received for the project, by the following candidates for the general contractor position: On April 4, 2020, after reviewing the bids, We Design It recommends to Owns All that Always Fastest Construction Inc. ("Always Fastest") receives the highest scores on the defined criteria as indicated in the Call for bids. Owns All and Always Fastest enter into a CCDC 2020 contract and designate We Design It as the prime consultant. With government financing, the balance of the project is financed by a syndicated bank loan for the remaining $125,000,000, with the arranging bank and agent being We Fund Construction Bank. Always Fastest hired We Do Mechanical Ltd. ("We Do") to perform mechanical work on the project. In order to get paid, We Do submits its requests for payment to Always Fastest, which integrates We Do's request for payment into its own and submits it to We Design It with a request that a progress payment be certified and that Owns All will obtain the release of the necessary financing to pay Always Fastest and We Do. From May 3, 2020, construction begins on the project and work hums along in accordance with the project schedule. In August 2021, with work continuing in earnest, Always Fastest submits a request for a progress payment, which is denied. Owns All has performed a site inspection and found that some of the work that We Do represented it had completed had not - in fact - been completed or was highly deficient. Construction immediately grinds to a halt: We Do files a lien* on the property, and the finger pointing begins. If construction does not resume quickly, Owns All will lose out on the $50,000,000 in additional financing it needs to complete the project. "We will cover liens in a future lecture, but for now, see it as a formal complain to court that will create problems on the title for the owner. Questions About the Fact Pattern For each of the following, please indicate what provisions of the contract are relevant to each of the following questions and briefly explain why and how they are relevant. Marks will be deducted for incorrect additional answers. 6. What can Owns All do to get the project moving forward? 7. What are Owns All options if it determines that there will be delays to the project schedule as a result of this? 8. If We Do wants to contest the non-payment, what are its options? 9. If the delay causes Owns All a loss, who is responsible and why? 10. Are there any provisions in the CCDC 2020 that suggest another option for resolving
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