CCDC 222 – 2002 Labour and Equipment Payment Obligations Standard Type of Security for labour and equipment payment obligations to ensure that the contractor meets all work and material payment obligations that are required to carry out the contract. Section 4 and Sections 5.2 to 5.7 of Form 32 allow the subject/owner to unilaterally perform certain work during the claim process. Section 4 creates the concept of “necessary temporary work” that an owner can undertake to ensure the safety of individuals, protect work from deterioration or comply with existing laws. In sections 5.2 to 5.7, the concept of Mitigation Work is established, that is, the work assessed by an owner to reduce the costs recoverable under the loan. These provisions relate to certain common law issues relating to performance obligations. In particular, they offer contractual protection to persons subject to rights who, in one way or another, have significantly affected and discharged the guarantee. This is reflected in Sections 4.3 and 5.7, which prohibit the warranty from increasing the fact that the defence work was done against an owner`s claims. SAC has developed the following standard bond forms, which are available free of charge. Don`t hesitate to download copies below. Some public bodies and even private owners use their own specific formulations, which they say will increase borrowing penetration. The Canadian Construction Documents Committee (CCDC) and its constituent bodies are pursuing their objective of adopting CCDC standard borrowing forms, as these forms were designed to be fair to all parties to the contractual/guaranteed relationship. In addition to fairness and balance, standard formulations have created a history of sound legal precedents that have clearly defined the importance of the various provisions of the document. Form 32 also more formally and explicitly defines the conditions for exercising the obligation.
In particular, Section 8.1 (d) (d) adds the requirement that the subject must agree to pay the balance of the contract price to the guarantee. This is noteworthy because the question of whether the payment of the contract price balance was a precondition before the amount of the guarantee filled out the loan was not clear on the CCDC form and has been the subject of some comments and discussions in the past. Article 2, which requires a pre-notice meeting, and Article 5, which requires a “post-notice conference,” provide the parties with a binding settlement for meetings and communications, both before and after the delay declaration. This seems to codify and reinforce the common recommendation that the parties to the obligation communicate openly and often with respect to the work undertaken and potential issues. The Surety Association of Canada is always pleased to meet with the owners to discuss and review bonding options and provide suggestions on how you can use security products to meet your unique performance safety requirements. If you have any questions or concerns, please contact the CSA office at (905) 677-1353 or e-mail surety [at] suretycanada.com. An important new feature of Form 32 is that it introduces mandatory schedules for notification, review and response according to a so-called standard. The CCDC form does not impose such delays, but is based on the relevance of the parties. Under the new Form 32, the guarantee must, after receiving a debt under the loan in the form of Schedule A on Form 32, issue the owner, within four business days, a confirmation as defined in Schedule B. In addition, the guarantee must provide, within twenty working days, a complete written response to the request based on its investigations and audits in the form of Schedule C.
The guarantee must also offer a “post-notice conference” within five working days or a longer period of time that can be agreed. There are also significant differences between the two obligations when it comes to the traditional options of a