Contractor Responsibilities and Compliance

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Questions and Answers

What must the Contractor do prior to the commencement of the Work?

Pay the owner any outstanding debts

Provide a revised insurance policy

Obtain a subcontractor's agreement

Provide any required Contract security (correct)

Which entity may deduct costs from amounts due to the Contractor?

The Owner (correct)

The Subcontractor

The Contractor

The Surety Company

What is required from insurers for the Contractor's insurance policies?

Insurers must have been in business for at least ten years

Insurers must provide coverage internationally

Insurers must be located in the Contractor's home province

Insurers must be licensed in the jurisdiction of the Place of the Work (correct)

In the event of increased insurance requirements specified by a revised version of CCDC 41, what can the Owner do?

Request increased coverage via a Change Order Signup and view all the answers

What is NOT allowed concerning changes in insurance requirements after revisions of CCDC 41?

Using a Change Directive to alter insurance requirements Signup and view all the answers

Which form should surety bonds conform to?

Latest edition of CCDC approved bond forms Signup and view all the answers

What happens if the contractor's insurance policy requires a renewal due to CCDC 41?

Parties must address any changes prior to renewal Signup and view all the answers

What is required of surety bonds according to the contract stipulations?

They must be issued by a company licensed in the relevant province Signup and view all the answers

How long is liability coverage provided for completed operations hazards after Substantial Performance of the Work?

6 years Signup and view all the answers

When does Automobile Liability Insurance coverage begin and end in relation to the Work?

Begins at the date of commencement of the Work until one year after Substantial Performance Signup and view all the answers

Which type of insurance is required from the beginning of the Work until 10 calendar days after Substantial Performance?

Broad form property insurance Signup and view all the answers

Under which circumstance does the Broad form property insurance cease to be effective?

When left unattended for more than 30 consecutive calendar days Signup and view all the answers

What obligation does the Contractor have concerning claims arising from patent infringements?

Hold the Owner harmless for all claims. Signup and view all the answers

Who is included as an insured under the Broad form property insurance policy?

The Contractor and all Subcontractors Signup and view all the answers

What does the Owner need to do when the Contractor provides evidence of compliance with workers' compensation legislation?

Review and verify compliance at any time during the contract. Signup and view all the answers

What types of insurance must the Contractor maintain according to the requirements mentioned?

General liability insurance and workers' compensation insurance. Signup and view all the answers

When is Boiler and machinery insurance coverage applicable?

In the joint names of the Contractor, Owner, and Consultant throughout the Work Signup and view all the answers

Under what condition must the general liability insurance be maintained by the Contractor?

From the work commencement until one year post Substantial Performance. Signup and view all the answers

Which condition would NOT allow Broad form property insurance to continue?

Construction activity ceasing for more than 30 consecutive calendar days Signup and view all the answers

What must the Contractor do if Subcontractors are involved in the Contract?

Provide evidence of their compliance with workers' compensation as requested. Signup and view all the answers

What is required for the use of Aircraft or Watercraft Liability Insurance in relation to the Work?

It applies when owned or non-owned aircraft or watercraft are used in the performance of the Work Signup and view all the answers

For claims arising out of the Contractor’s performance, when is the Contractor not held harmless by the Owner?

If the infringement resulted from the Contractor's own actions. Signup and view all the answers

What aspect of coverage is covered by the Contractor's general liability insurance?

Liability arising from operations of the Contractor not related to their negligence. Signup and view all the answers

What information is the Contractor required to provide when applying for payment of the holdback amount post Substantial Performance?

Evidence of compliance with workers' compensation legislation. Signup and view all the answers

What is the primary condition for the Contractor to waive claims against the Owner?

Claims must be known by the Contractor at least five days before the lien period ends. Signup and view all the answers

Under what circumstances can the Contractor still assert claims despite waiving them?

If Notice in Writing is provided six days before the lien period expires. Signup and view all the answers

What must the Owner do to retain the right to claim against the Contractor?

Issue a written notice at least six days before the lien period ends. Signup and view all the answers

Which type of claims cannot be waived by the Contractor after the date of Substantial Performance?

Claims related to substantial defects in the Work. Signup and view all the answers

What happens if the Contractor does not provide Notice in Writing of a claim within the specified time?

The Contractor permanently forfeits any claims against the Owner. Signup and view all the answers

What is the written notice period for the Owner to retain claims against the Contractor?

Six days before the lien period expiration. Signup and view all the answers

Which of the following claims can the Contractor still make after the date of Substantial Performance?

Indemnification claims against third parties. Signup and view all the answers

The waiver of claims by the Contractor does NOT apply to which of the following?

Claims for substantial defects after completion. Signup and view all the answers

What must the Owner establish to waive claims against the Contractor?

Knowledge of potential claims before the lien expires. Signup and view all the answers

Which of the following statements is true regarding the waiver of claims?

Waivers are limited to those claims known at the time. Signup and view all the answers

What is the significance of the CCDC 2 copyright seal on the document cover page?

It ensures the document is an accurate version without any amendments. Signup and view all the answers

What does the party making a claim have to submit after an event has a continuing effect?

An interim account at reasonable intervals. Signup and view all the answers

If a Notice in Writing of claim is received just before the expiry of the lien period, what happens to the deadlines for subsequent claims?

The notice deadlines are extended by two calendar days. Signup and view all the answers

What is the requirement for using a CCDC 2 document without a copyright seal?

It constitutes copyright infringement. Signup and view all the answers

According to the guidelines, what should supplementary conditions include?

Alterations, additions, or modifications to the contract. Signup and view all the answers

What happens if a claim under paragraphs 12.2.1 or 12.2.3 has a continuing effect?

An interim account must be provided until a final account is submitted. Signup and view all the answers

What is the role of the detailed account submitted under paragraph 12.2.7?

To serve as an interim account before further submissions. Signup and view all the answers

What could be the consequence of not submitting a Notice in Writing of claim before the lien period expires?

The claim may be denied or become invalid. Signup and view all the answers

Study Notes

Patent Infringement

The Contractor is responsible for any patent infringement claims arising from their performance of the Contract
The Owner will hold the Contractor harmless for any patent infringement claims if the design was provided as part of the Contract Documents

Workers’ Compensation Compliance

The Contractor must provide evidence of workers’ compensation compliance at the Place of the Work
This evidence must be provided during the Contractor’s application for holdback payment, final payment, and when requested by the Owner
The evidence applies to both the Contractor and Subcontractors

Insurance Coverage Requirements

The Contractor must provide various insurance coverages as specified in CCDC 41 – CCDC Insurance Requirements
General Liability Insurance must name the Owner and Consultant as insureds and cover operations for the Contractor
The Contractor must maintain General Liability Insurance from the date of commencement of the Work until one year after Substantial Performance of the Work
Automobile Liability Insurance must be maintained from the date of commencement of the Work until one year after the date of Substantial Performance of the Work
Aircraft or Watercraft Liability Insurance is required when owned or non-owned aircraft or watercraft are used for the Work
Broad form property insurance must include the Contractor, Owner, and Consultant as insureds and covers all Subcontractors
The policy must be provided from the date of commencement of the Work until the earliest of 10 days after Substantial Performance, the commencement of use, or when left unattended for more than 30 days
Boiler and Machinery Insurance must include the Contractor, Owner, and Consultant as insureds and covers all Subcontractors

Insurance Policy Requirements

All required insurance policies must be with insurers licensed in the jurisdiction of the Place of the Work
The parties must address any changes to CCDC 41 – INSURANCE REQUIREMENTS before renewal of the Contractor’s insurance policy and record any agreements in a Change Order

Contract Security

The Contractor must provide any Contract security specified in the Contract Documents before commencement of the Work
Surety bonds must be provided if required in the Contract Documents
Surety bonds must be issued by a licensed surety company in the province or territory of the Place of the Work and maintained in good standing
The form of surety bonds must be in accordance with the latest edition of the CCDC approved bond forms

Waiver of Claims

The Contractor waives and releases the Owner from all claims that arise from the Contractor’s involvement in the Work
This applies to claims that occur prior to or on the date of Substantial Performance
This does not apply to any claims for which the Contractor has provided Notice in Writing to the Owner
The Contractor can assert claims for indemnification from third parties and claims that arise after the date of Substantial Performance
The Owner waives and releases the Contractor from all claims that arise from the Owner’s involvement in the Work
This applies to claims that occur prior to or on the date of Substantial Performance of the Work
This does not apply to any claims for which the Owner has provided Notice in Writing to the Contractor
The Owner can assert claims for indemnification from third parties
Claims for damages resulting from substantial defects or deficiencies in the Work are not waived

Claim Timeline Requirements

The Contractor must provide Notice in Writing of any claims to the Owner no later than the sixth calendar day before the expiry of the lien period
The Owner must provide Notice in Writing of any claims to the Contractor no later than the sixth calendar day before the expiry of the lien period
The Contractor must provide Notice in Writing of any claims to the Owner within 395 calendar days following the date of Substantial Performance of the Work
In the situation where a Notice in Writing of claim is received within the last two days of the lien period, the other party has an additional two days to provide Notice of claim

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Description

This quiz covers essential contractor responsibilities regarding patent infringement, workers' compensation compliance, and insurance coverage requirements. It reflects on the obligations of the contractor under a contract and the necessary documentation to maintain compliance. Test your knowledge on these vital aspects of contract law.