A major construction project can be realized in different ways. It is possible to entrust the whole project to a single contractor in exchange for a lump sum amount; this is the context of this construction template.

A fixed price construction agreement is the legal instrument by which a contractor offers its services and expertise to realize a construction project. It defines the tasks that the contractor must complete in exchange for consideration paid by the project owner. The contractor is responsible for overseeing the work to ensure that it complies with the plans and specifications provided by the project owner. The contractor provides the necessary labour and the materials and, when required, contracts directly with any subcontractors and suppliers. Unlike a relative fixed price agreement (where changes can be unilaterally made by the owner), none of the parties may change the price in a fixed price construction agreement.

We recommend using this agreement when the project owner wants a contractor to oversee the entire project - from designing, planning to completion. It is designed to be used either as a contract by mutual agreement or as contract awarded in a call for tenders. This template presents some clauses in different versions depending on the intended use of the agreement.

This agreement requires the project owner to have previously entered into a different agreement with a professional (e.g. architect, engineer, etc.) who has the right to practice in the province where the project will carried out (see our professional services agreement template F03200).

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Attestation de Revenu Québec (ARQ)
0.01.03 Best Efforts
0.01.04 Breach
0.01.05 Change
0.01.06 Conditional Acceptance Certificate
0.01.07 Confidential Information
0.01.08 Designated Professional
0.01.09 Equipment
0.01.10 Financial Institution
0.01.11 Force Majeure
0.01.12 Intellectual Property
0.01.13 Intergovernmental Agreement
0.01.14 Law
0.01.15 Legal Representatives
0.01.16 Materials
0.01.17 PARTY
0.01.18 Person
0.01.19 Personal Information
0.01.20 Plans and Specifications
0.01.21 Prime Rate
0.01.22 Professional
0.01.23 Project Manager
0.01.24 Related Person
0.01.25 Site
0.01.26 Subcontract
0.01.27 Subcontractor
0.01.28 Timeline
0.01.29 Unconditional Acceptance Certificate
0.01.30 Work
0.02 Precedence
0.02.01 Agreement and Oral Promises
0.02.02 Conflicts Between Documents
a) Order of Precedence
b) Authority of Professional
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-Compliance
a) Severability
b) Substitute Provision
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time Limits
a) Time of the Essence
b) Computation of Time
c) Delays
d) Request
0.04.03 Financial References
0.04.04 Cross-References
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
1.00 PURPOSE
1.01 Work Contracted
1.02 Conditions
1.02.01 Required by OWNER
1.02.02 Required by CONTRACTOR
1.02.03 Election
1.03 Licence
2.00 CONSIDERATION
2.01 Work
2.01.01 Price
2.01.02 Cost Breakdown
2.02 Licence
2.03 Adjustments
2.03.01 Rule
2.03.02 Other Contractors
2.03.03 Subcontractors and Suppliers
2.03.04 Hazardous Materials
2.03.05 Change Request
2.03.06 Determining Value of Change
2.03.07 Cost of Labour, Materials and Equipment
2.03.08 Negotiating the Value of a Change
a) Unilateral Determination
b) Notice of Dispute
2.04 End of Agreement
2.04.01 Work and Goods Provided
2.04.02 Materials and Demolition Costs
2.04.03 Profits or Damages
3.00 TERMS OF PAYMENT
3.01 Procedure
3.01.01 Request for Payment
3.01.02 Required Content
3.01.03 Declaration
3.01.04 Certificate of Payment
3.01.05 Proof of Insurance
3.01.06 Payment
3.01.07 Partial Release
3.01.08 No Acceptance
3.01.09 Verification
3.01.10 Interest
3.01.11 Change Order
3.02 Holdback
3.02.01 Determination of Amount
3.02.02 Legal Hypothecs
3.02.03 Subcontractors Outside of Québec
3.02.04 Request for Indemnification
3.03 Postponed Work
3.04 Place
3.05 Delegation [optional clause]
3.06 End of Agreement
3.06.01 Return of Advance
3.06.02 Compensation
3.07 Indemnity
4.00 SECURITY
4.01 Security
4.01.01 In Favour of OWNER
4.01.02 In Favour of CONTRACTOR
4.01.03 Adjustment
4.01.04 Maintaining
4.02 Registration
4.03 Taking Possession
4.04 Prior Notice to Surety
4.04.01 Request to Pay
4.04.02 Indemnification
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Canadian Status
5.06 Insurance
5.07 Nominee
5.08 Disclosure
5.09 Legal Proceedings
6.00 REPRESENTATIONS AND WARRANTIES OF OWNER
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Canadian Resident
6.05 Canadian Status
6.06 Insurance
6.07 Nominee
6.08 Disclosure
6.09 Legal Proceedings
7.00 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR
7.01 Prior Authorization to Contract Issued by Autorité des marches financiers (AMF)
7.02 Compliance Certificate from Revenu Québec [optional clause]
7.03 Permits, Licences and Other Authorizations
7.04 Ability to Perform
7.05 Place of Business in Québec
7.06 No Workplace Conflicts
7.07 Intellectual Property
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Representative
8.02 Collaboration
9.00 DUTIES AND OBLIGATIONS OF OWNER
9.01 Access to Plans and Specifications
9.01.01 Transmission
9.01.02 Permits Obtained
9.01.03 Ancillary Information
9.02 Access to Site
9.03 Project Manager
9.04 No Interference
9.05 Hazardous Materials
9.05.01 Presumption
9.05.02 Control and Disclosure
9.05.03 Prevention Against Exposure
9.05.04 Disposal or Neutralization
9.06 Other Contractors
9.07 Evaluation and Acceptance
9.07.01 Right of Refusal
a) Non-Compliant Work
b) Reasonable Grounds
9.07.02 Notice
9.07.03 Execution by a Third Party
9.08 Change Request
9.09 Exemption from Liability
9.09.01 Scope
9.09.02 Exception
10.00 DUTIES AND OBLIGATIONS OF CONTRACTOR
10.01 Maintaining Prior Authorization to Contract Issued by AMF
10.02 Compliance
10.02.01 Applicable Laws
10.02.02 Permits and Authorizations
a) Obtaining
b) Maintaining
c) Formalities
d) Subcontractors
10.02.03 Commission de la construction du Québec
10.02.04 CSST
a) Requirement
b) Compliance
c) ASP Certification
d) Notice to CSST
e) CSST Certification
10.02.05 Tobacco Act
10.03 Insurance
10.03.01 General Civil Liability
10.03.02 Site
a) Subscribe to and Maintain in Force
b) Coverage
10.03.03 Proof of Insurance
10.03.04 Insurer
10.03.05 Prior Notice
10.03.06 No Limit of Liability
10.04 Confidential Information
10.04.01 Undertaking
10.04.02 End of Agreement
10.05 Project Management
10.05.01 Control Over Work
a) Scope
b) Collaboration
c) Engineer-Consultant
10.05.02 Supervision of Work
a) Superintendent and Foreman
b) Delegation of Powers
c) Replacement
10.05.03 Site Meetings
a) Frequency
b) Mandatory Attendance
c) Reports or Minutes
10.05.04 Other Contractors
a) Coordination
b) Timeline
c) Disclosure
10.05.05 Conflicts of Interest
a) Undertakings to Avoid
b) Notice
c) Scope
10.06 Materials and Equipment
10.07 Plans and Specifications
10.08 Timeline
10.08.01 Contents
10.08.02 Delivery
10.08.03 Compliance
10.08.04 Monitoring
10.08.05 Regular Updates
10.09 Completion Deadline
10.09.01 Starting Point
10.09.02 Extension
10.09.03 Authorization
10.10 Temporary Installations
10.11 Best Efforts
10.12 Drawings and Instructions
10.12.01 Availability
10.12.02 Verification
10.12.03 Liability
10.12.04 Annotations
10.13 Health and Safety
10.13.01 Prevention Program
a) Develop
b) Remittance
c) Ensuring Compliance
10.13.02 Protection Equipment
10.13.03 Notice to OWNER
10.14 Protecting Persons and Property
10.14.01 Scope
10.14.02 Repairs
a) CONTRACTOR’s Expense
b) OWNER’s Expense
10.15 Workers
10.15.01 Authority
10.15.02 Qualified and Sufficient Quantity
10.15.03 Exclusions
a) Former Employees
b) Without Reasonable Cause
10.15.04 Entry and Exit
10.15.05 Identification
10.15.06 Conduct
10.15.07 Liability
10.16 Subcontractors and Suppliers
10.16.01 Distribution of Work
10.16.02 Responsibility
10.16.03 Effect
10.16.04 Eligibility
a) Attestation de Revenu Québec [optional clause]
b) RENA [optional clause]
c) Register of Persons Not Eligible for Public Contracts [optional clause]
d) Contractor’s Licence
e) Initial Subcontractor List
f) Amended Subcontractor List
10.16.05 Undertakings
10.16.06 Opposition
10.16.07 Limitation
10.16.08 Proportion
10.17 Transport
10.17.01 Use of Own Trucks Permitted
10.17.02 Permit Required
10.18 Signature and Signs [optional clause]
10.18.01 Announcement of Project
10.18.02 Prohibition
10.18.03 Advertising Sign
10.18.04 Signature
10.19 Subsoil Conditions
10.19.01 Notice
10.19.02 Inspection by Designated Professional
10.20 Protecting Surrounding Areas
10.21 Preventing Nosocomial Infections
10.22 Disruptions
10.23 Survey Stakes and Level
10.24 Cutting, Piercing and Repairs
10.24.01 Liability
10.24.02 Qualified Personnel
10.24.03 Presumption
10.25 Samples, Testing and Mixtures
10.25.01 Submitting and Identification
10.25.02 Prior Approval
10.25.03 Transmitting Results
10.25.04 Cost of Unplanned Supplementary Trials
10.26 Site Cleanliness
10.26.01 Scope
10.26.02 Adverse Weather
10.26.03 End of Work
10.27 Hazardous Materials
10.27.01 Liability
10.27.02 Delay
10.27.03 Independent Expert
10.28 Finding
10.28.01 Acknowledgement
10.28.02 Waiver
10.28.03 Turn Over Object
10.29 Inspection
10.29.01 Right to Access
10.29.02 Authorized Persons
10.29.03 Concealed Work
10.29.04 Specific Inspection
10.29.05 General Inspection
10.29.06 Fees
10.29.07 Transmit Report
10.30 Suspension of Work
10.31 Work Debris
10.31.01 Removal
10.31.02 Repair
10.32 Change Order
10.32.01 Prohibition
10.32.02 Immediate Execution
10.32.03 Condition
10.33 Instruction Manual
10.34 Warranty
10.34.01 Duration
a) CONTRACTOR
b) Supplier
10.34.02 Period Begins
10.34.03 Latent Defect and Substandard Work
a) Liability
b) Notice of Defect
10.35 Indemnification
10.35.01 Disclosure
10.35.02 “Loss”
10.35.03 Scope
10.35.04 Procedure
11.00 SPECIAL PROVISIONS
11.01 Assignment Subject to Authorization
11.02 Pre-Authorized Assignment
11.03 Force Majeure
11.03.01 No Default
11.03.02 Duty
11.03.03 Rights of Other PARTY
11.04 Relationship
11.04.01 No Control Over Performance
11.04.02 No Authority to Bind
11.05 Further Assurances
11.06 Remedies
11.06.01 Election
11.06.02 No Limitations
11.07 Intellectual Property
11.08 Site Instructions
11.08.01 Issuance
11.08.02 Change Request
11.08.03 Form
11.09 Substitute or Equivalent Materials
11.09.01 Prior Approval
11.09.02 Demonstration
11.09.03 Prohibition
11.09.04 Change Order
11.10 Demolition and Dismantling
11.11 Acceptance of the Work
11.11.01 Conditional Acceptance
a) Prior Conditions
b) Request for Inspection
i) Notice
ii) Fees for Subsequent Inspections
c) Deferred Work
i) List
ii) Holdback
d) Documents Provided
e) Issuance of Certificate of Acceptance
11.11.02 Unconditional Acceptance
a) Request for Inspection
i) Notice
ii) Fees for Subsequent Inspections
b) Process
c) Issuance of Certificate of Acceptance
11.12 Taking Possession
11.12.01 Early Possession
a) Election of OWNER
b) Consent of CONTRACTOR
c) Agreement Form
11.12.02 Date of Possession in Certificate
12.00 GENERAL PROVISIONS
12.01 Notice
12.01.01 Transmission
12.01.02 Receipt
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
a) Joint Appointment
b) Appointment by a Third Party
c) Undertaking of Mediator
d) Rules
e) Exchange of Information
f) Professional Fees and Expenses
g) Representative
h) Confidentiality
i) Settlement
12.02.03 Arbitration
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontracts
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Cancellation
13.03 Termination
13.03.01 By the OWNER
13.03.02 Without Notice
13.03.03 With Notice
13.04 Effect of Termination
13.05 Available Remedies
13.05.01 Election
13.05.02 Warranties and Obligations
13.06 Possession of the Site
13.06.01 Entitlement
13.06.02 Liability
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Work
15.02 Survival
16.00 SCOPE



SCHEDULE 0.01.05 – CHANGE REQUEST
SCHEDULE 0.01.20 – PLANS AND SPECIFICATIONS
SCHEDULE 0.01.28 – TIMELINE
SCHEDULE 2.03.08 – CHANGE ORDER
SCHEDULE 3.01.01 – REQUEST FOR PAYMENT
SCHEDULE 3.01.03 – DECLARATION
SCHEDULE 3.01.04 – PAYMENT CERTIFICATE
SCHEDULE 3.01.07 – PARTIAL RELEASE
SCHEDULE 3.02.01 – FINAL RELEASE
SCHEDULE 4.01.01 – SURETY BOND
SCHEDULE 4.02 – NOTICE TO EMPLOYEES, SUBCONTRACTORS AND SUPPLIERS
SCHEDULE 10.03.01 – ENDORSEMENT TO CIVIL LIABILITY INSURANCE POLICY
SCHEDULE 10.03.02 – ENDORSEMENT TO SITE INSURANCE POLICY
SCHEDULE 10.05.04 – LIST OF OTHER CONTRACTORS
SCHEDULE 10.15.04 – LIST OF SUBCONTRACTORS
SCHEDULE 11.08 – SITE INSTRUCTIONS
SCHEDULE 11.11.01 – CONDITIONAL ACCEPTANCE CERTIFICATE
SCHEDULE 11.11.02 – UNCONDITIONAL ACCEPTANCE CERTIFICATE