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General Contractor Agreement Cost Plus Fee Template for Canada

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Key Requirements PROMPT example:

General Contractor Agreement Cost Plus Fee

"Need to draft a General Contractor Agreement Cost Plus Fee for a large-scale hospital renovation project in Ontario, with a 12% contractor's fee and specific provisions for maintaining medical facility operations during construction, targeting project completion by June 2025."

Document background
The General Contractor Agreement Cost Plus Fee is essential for construction projects in Canada where the scope of work cannot be precisely defined at the outset or where flexibility is needed to accommodate changes during construction. This agreement type is particularly suitable for complex, large-scale, or renovation projects where unforeseen conditions may be encountered. The document comprehensively covers cost determination, fee calculation, payment terms, change order procedures, and risk allocation, while ensuring compliance with provincial construction laws and regulations. It includes specific provisions required by Canadian legislation regarding liens, payment terms, and safety requirements. The agreement is structured to provide transparency in cost reporting while protecting both the owner's right to project oversight and the contractor's right to fair compensation for services rendered.
Suggested Sections

1. Parties: Identification of the Owner and General Contractor, including full legal names and addresses

2. Background: Context of the agreement and general project overview

3. Definitions: Key terms used throughout the agreement, including 'Cost of Work', 'Contractor's Fee', 'Project', etc.

4. Scope of Work: Detailed description of the contractor's responsibilities and services to be provided

5. Cost of Work: Definition and itemization of costs included in the cost portion of the cost-plus arrangement

6. Contractor's Fee: Specification of the fee calculation method (percentage or fixed) and what it covers

7. Payment Terms: Billing procedures, payment schedule, and treatment of reimbursable expenses

8. Project Schedule: Timeline, milestones, and completion dates

9. Changes in Work: Process for change orders and adjustments to scope

10. Insurance and Bonds: Required insurance coverage and bonding requirements

11. Permits and Compliance: Responsibility for obtaining permits and ensuring regulatory compliance

12. Warranties and Representations: Contractor's warranties regarding work quality and performance

13. Termination: Conditions and procedures for contract termination by either party

14. Dispute Resolution: Process for resolving disputes between parties

15. General Provisions: Standard contract clauses including governing law, notices, and assignment

Optional Sections

1. Acceleration and Delays: Used when specific provisions for schedule acceleration or delay penalties are needed

2. Hazardous Materials: Include when project involves potential hazardous materials handling

3. Sustainable Building Requirements: Add when project has specific environmental or sustainability goals

4. Site Security: Include for projects requiring specific security measures

5. Commissioning: Add for projects requiring formal commissioning process

6. Value Engineering: Include when specific cost optimization processes are required

7. Multiple Prime Contractors: Add when coordination with other contractors is required

8. Financing Provisions: Include when specific owner financing arrangements affect the project

9. Labor Relations: Add when union requirements or specific labor arrangements apply

Suggested Schedules

1. Schedule A - Scope of Work: Detailed description of work including drawings and specifications

2. Schedule B - Cost Breakdown: Detailed breakdown of cost components and contractor's fee calculation

3. Schedule C - Project Schedule: Detailed timeline with milestones and critical path

4. Schedule D - Key Personnel: List of key contractor personnel and their roles

5. Schedule E - Required Insurance: Detailed insurance requirements and coverage limits

6. Schedule F - Forms: Standard forms for change orders, payment applications, and other project documents

7. Schedule G - Site Specific Requirements: Special site conditions or requirements

8. Schedule H - Health and Safety Plan: Contractor's health and safety procedures and protocols

9. Schedule I - Quality Control Plan: Quality control procedures and standards

10. Schedule J - Subcontractors: List of approved subcontractors and their scope of work

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses











































Relevant Industries

Commercial Construction

Residential Development

Industrial Construction

Institutional Construction

Infrastructure Development

Healthcare Facilities

Educational Facilities

Retail Construction

Hospitality Construction

Manufacturing Facilities

Relevant Teams

Legal

Operations

Construction Management

Procurement

Finance

Risk Management

Project Management

Commercial

Development

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Chief Operating Officer

Procurement Manager

Legal Counsel

Risk Manager

Chief Financial Officer

Project Manager

Cost Controller

Quantity Surveyor

Site Superintendent

Operations Director

Development Manager

Commercial Director

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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