Advocacy / Contract Management
Contract Management
ACA Contract Management
Balanced contracts are vital to efficient project delivery. ACA advocates for the use of standard, modernized contracts that allocate risk fairly between owners and contractors.
Excessive liability clauses, unmanageable insurance requirements, or unilateral penalties discourage participation, reduce competition, and increase overall costs. A balanced approach ensures accountability while supporting innovation and growth.
Contract Modernization
Over the past few years, ACA has collaborated with the Alberta government to advance the discussion on Contract Modernization, focusing on the equitable allocation of risk. This initiative aims to ensure fairness for all stakeholders involved.
The conversation began with concerns raised through the Industry Liaison Committee. Over time, these discussions evolved into detailed correspondence and meetings with Alberta Infrastructure, where we worked to clarify our perspectives and address ongoing challenges.
Together with our partner local associations, ACA has engaged in productive dialogue with Alberta Infrastructure to address these issues. While we appreciate the government’s openness and willingness to engage with us, several key concerns remain unresolved.
The primary issues ACA has highlighted include:
- Payment of interest
- Risk associated with strikes
- Force majeure provisions
- Waiver of consequential loss
- Limits on liability
- Prompt payment practices
- Concerns regarding sole, absolute, and unfettered discretion
We continue sharing insights with the government gained from our experiences with other procurement authorities, including best practices and lessons learned. And we will continue to work with them on positive changes for the construction industry.
We encourage our members to continue sharing their experiences and concerns on these issues. This ongoing feedback allows us to effectively advocate on your behalf and ensure these matters remain a priority in our discussions with Alberta Infrastructure.
Contract Risk
Contract risk remains one of the most significant issues facing Alberta’s construction sector because it directly affects project delivery, financial stability, and workforce capacity.
Over the past decade, ACA has consistently raised concerns about the shifting of disproportionate risk down the supply chain, particularly through onerous contract clauses, unclear scope definitions, and inconsistent application of procurement rules.
When contractors are required to absorb risks they cannot reasonably control, such as price volatility, design changes, permitting delays, or compressed schedules, it creates uncertainty that cascades across entire project teams. This reduces competitiveness, discourages bids, inflates contingency pricing, and strains relationships between owners, general contractors and trades.
Ultimately, unmanaged contract risk undermines the outcomes that the government and owners want: predictable budgets, timely delivery, and high-quality work.