https://www.legallybuilt.ca/legally-built-blog daily 0.75 2026-09-22 https://www.legallybuilt.ca/legally-built-blog/the-price-changed-after-you-signed-the-contract monthly 0.5 2026-10-26 https://images.squarespace-cdn.com/content/v1/68e56689a71eab68fa4e9209/1790087980133-PWC12DT6C75FD7CTOBUG/unsplash-image-doplSDELX7E.jpg LEGALLY BUILT Blog - The Price Changed After You Signed the Contract. Now What? - What does the contract actually say? A stipulated-price contract provides an owner with a significant degree of price certainty, and a contractor entering into that arrangement generally assumes meaningful pricing risk. That does not necessarily mean every cost increase arising during the project will automatically be borne by the contractor. https://images.squarespace-cdn.com/content/v1/68e56689a71eab68fa4e9209/1790088123815-H8PWEG8VRNM04H7KDPE1/unsplash-image-_Y82jqFIBgw.jpg LEGALLY BUILT Blog - The Price Changed After You Signed the Contract. Now What? - Managing price risk before the contract is signed Tariffs are one example of a much broader issue. Construction contracts routinely allocate risks that cannot be eliminated, including changes in material costs, labour conditions, supply-chain disruptions and regulatory requirements. Where price volatility is a known concern during procurement, it is worth dealing with expressly rather than assuming the parties will be able to resolve it if circumstances change. An escalation clause is one possible approach. Depending on how it is drafted, it can identify the materials or costs subject to adjustment, establish a baseline price or index, define the circumstances that trigger an adjustment and determine how increases and decreases will be calculated. This is not an unusual concern within the Canadian construction industry. The Canadian Construction Association’s current policy on firm-price quotations supports making an escalation-adjustment clause available as an option where an owner requests fixed-price bids, together with a corresponding de-escalation mechanism. Other contractual approaches may be appropriate depending on the project. Parties can address responsibility for newly imposed tariffs, identify particular pricing assumptions, use allowances for volatile inputs, or establish how certain changes in law will be treated. Where a contractor has qualified its bid based on a particular assumption, care should also be taken to ensure that the qualification actually forms part of the final contractual agreement if the contractor intends to rely on it. None of these approaches guarantees that costs will remain stable. Their purpose is to establish, as clearly as possible, what the parties have agreed will happen if they do not. That distinction matters. If everyone knows during procurement that the price of a critical material is unusually volatile, leaving the contract silent does not remove the uncertainty. It leaves the parties to determine who bears the consequences after the cost has already changed. https://images.squarespace-cdn.com/content/v1/68e56689a71eab68fa4e9209/1790088364629-O457VQJ0SVH43QNWBXZJ/unsplash-image-PlBsJ5MybGc.jpg LEGALLY BUILT Blog - The Price Changed After You Signed the Contract. Now What? - Price certainty and fair risk allocation are not necessarily the same thing Owners understandably want price certainty, particularly when budgets and financing depend on knowing what a project will cost. Contractors also need to know which risks they are expected to price and which risks may result in an adjustment to the contract price. Those objectives do not have to be incompatible. Allocating every possible pricing risk to a contractor may create the appearance of certainty, but that risk still has a cost. Contractors may respond through contingencies, qualifications or higher pricing, and some may decide not to pursue work where the risk cannot reasonably be assessed. If an extraordinary event eventually occurs, unclear or unrealistic risk allocation can also become the starting point for a dispute. At the other end of the spectrum, a clause that simply transfers every cost increase to the owner does little to provide the price certainty the owner was seeking in the first place. https://www.legallybuilt.ca/legally-built-blog/progressive-design-build-is-having-a-moment monthly 0.5 2026-09-22 https://images.squarespace-cdn.com/content/v1/68e56689a71eab68fa4e9209/1790026099334-91DBFNMH4E907542D0BQ/unsplash-image-ESZRBtkQ_f8.jpg LEGALLY BUILT Blog - Progressive Design-Build Is Having a Moment. The Contract Still Matters.  - What actually makes it “progressive”? Under CCDC 32, the project is divided into two phases. During the first phase, the owner and design-builder work through project development. The design-builder develops the design and performs other project-development services before committing to a stipulated price for completion of the project in Phase 2. That distinction matters. In a traditional design-build arrangement, much of the commercial bargain is established at the outset. Progressive design-build deliberately postpones some of that commitment so the parties can develop the project together first. Design can advance. The owner’s requirements can become clearer. Costs can be tested. Schedule assumptions can be examined. Risks that looked theoretical during procurement can become much more concrete. Only then does the project reach the point where the parties decide whether they are prepared to move into the construction phase. CCDC’s own materials describe mechanisms including project gates, early works and “off-ramps,” with the Final Project Proposal playing a critical role in determining the transition between project development and construction. There is an obvious attraction to that model. There is also an important misconception to avoid. https://images.squarespace-cdn.com/content/v1/68e56689a71eab68fa4e9209/1790026215096-2MH5OZIB75HXB093GGSG/unsplash-image-nhCPOp4A2Xo.jpg LEGALLY BUILT Blog - Progressive Design-Build Is Having a Moment. The Contract Still Matters.  - The contract needs to match the behaviour There is another risk with collaborative contracting that has less to do with the form itself. You cannot put a collaborative contract around a project and assume the project will become collaborative. The people administering it still matter. If information is withheld, decisions are delayed, budgets are treated defensively, risk registers become exercises in protecting positions, or the parties revert to traditional adversarial behaviour as soon as something goes wrong, the promise of the delivery model begins to disappear. That is why progressive design-build requires more than selecting CCDC 32 during procurement. It requires the owner, design-builder, consultants and project team to understand the model they have actually agreed to administer. The contract needs to be reflected in the project’s decision-making, documentation, communication and governance from the beginning. https://www.legallybuilt.ca/legally-built-blog/why-construction-claims-begin-long-before-anyone-notices-a-delay monthly 0.5 2026-05-15 https://www.legallybuilt.ca/legally-built-blog/alberta-bill-30 monthly 0.5 2026-05-08 https://www.legallybuilt.ca/legally-built-blog/a-year-in-review monthly 0.5 2026-01-30 https://www.legallybuilt.ca/legally-built-blog/a-functional-approach-to-albertas-drop-dead-rule monthly 0.5 2026-01-30 https://www.legallybuilt.ca/legally-built-blog/the-contract-blueprint-build-protection-into-every-project monthly 0.5 2025-11-05 https://www.legallybuilt.ca/legally-built-blog/liening-for-tenant-improvement monthly 0.5 2025-11-03 https://www.legallybuilt.ca/legally-built-blog/pay-now-argue-later monthly 0.5 2025-10-29 https://www.legallybuilt.ca/legally-built-blog/construction-lien-timing monthly 0.5 2025-10-27 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