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Construction Management Agreement

This Construction Management Agreement template outlines the terms and conditions between a client and a construction manager for professional services rendered in a construction project. It is suitable for use when formally engaging a construction manager to oversee and coordinate building activities.

Updated 15d ago
constructionmanagementagreementcontractproject managementsouthern africabuilding

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Construction Management Agreement

Construction Management Agreement

{{company_name}} {{company_address}} Phone: {{phone}} Email: {{email}} Website: {{website}}

1. Parties

This Construction Management Agreement (the “Agreement”) is made and entered into as of {{date}} by and between:

**{{client_company_name}}** (hereinafter referred to as “the Client”), a company duly incorporated under the laws of {{client_jurisdiction}}, with its principal place of business located at {{client_address}}.

AND

**{{construction_manager_company_name}}** (hereinafter referred to as “the Construction Manager”), a company duly incorporated under the laws of {{construction_manager_jurisdiction}}, with its principal place of business located at {{construction_manager_address}}.

2. Project Description

The Client intends to undertake a construction project, hereinafter referred to as “the Project”, located at {{project_site_address}}, involving {{brief_project_description_e.g._construction_of_a_new_office_block}}.

The estimated project commencement date is {{project_start_date}} and the estimated completion date is {{project_end_date}}.

3. Scope of Services

The Construction Manager shall provide comprehensive construction management services for the Project, including but not limited to:

3.1. **Pre-Construction Phase:** Project planning, design review, cost estimation, budget development, scheduling, procurement strategy, and contractor selection assistance.

3.2. **Construction Phase:** Overseeing and coordinating all construction activities, managing subcontractors, ensuring adherence to project schedules and budgets, quality control, site safety management, and progress reporting.

3.3. **Post-Construction Phase:** Project close-out, final inspections, defect rectification management, and handover procedures.

Specific deliverables and milestones for each phase shall be detailed in Annexure A.

4. Fees and Payment

4.1. **Management Fee:** The Client shall pay the Construction Manager a fixed management fee of {{management_fee_amount}} ({{management_fee_currency}}) or a percentage of the total project cost, being {{percentage_of_project_cost}}%, for the services rendered.

4.2. **Payment Schedule:** Payments shall be made according to the following schedule: {{payment_schedule_details_e.g._30%_upfront,_30%_at_mid-point,_40%_upon_completion}}.

4.3. **Expenses:** All reasonable out-of-pocket expenses incurred by the Construction Manager in the performance of the services, as approved by the Client, shall be reimbursed by the Client. Such expenses shall be supported by original receipts.

4.4. **Invoicing:** The Construction Manager shall submit invoices monthly for services rendered and approved expenses. Invoices are payable within {{payment_due_days}} days of receipt.

5. Client's Responsibilities

The Client shall:

5.1. Provide all necessary information, access to the site, and approvals required for the timely execution of the Project.

5.2. Make timely payments as per the agreed schedule.

5.3. Appoint a primary contact person, {{client_contact_person}}, for all communications with the Construction Manager.

5.4. Review and approve documents, plans, and reports submitted by the Construction Manager within reasonable timeframes.

6. Term and Termination

6.1. **Term:** This Agreement shall commence on {{effective_date}} and shall remain in full force and effect until the completion of the Project and final payment, unless terminated earlier in accordance with the provisions herein.

6.2. **Termination for Convenience:** Either party may terminate this Agreement for convenience by providing {{notice_period_days}} days' written notice to the other party.

6.3. **Termination for Cause:** Either party may terminate this Agreement immediately upon written notice if the other party breaches any material term of this Agreement and fails to remedy such breach within {{cure_period_days}} days of receiving written notice thereof.

7. Indemnification

Each party agrees to indemnify and hold harmless the other party, its officers, directors, employees, and agents from and against any and all claims, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or in connection with its performance or non-performance under this Agreement, except to the extent caused by the gross negligence or willful misconduct of the indemnified party.

8. Governing Law and Dispute Resolution

8.1. **Governing Law:** This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_jurisdiction}}.

8.2. **Dispute Resolution:** Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall first be subjected to good faith negotiations between the parties. If the dispute cannot be resolved through negotiation within {{negotiation_period_days}} days, the parties agree to submit the dispute to mediation in accordance with the rules of {{mediation_body_e.g._AFSA}}.

8.3. Should mediation fail, the dispute shall be referred to arbitration under the rules of {{arbitration_body_e.g._AFSA}} by one arbitrator appointed in accordance with the said rules.

9. Entire Agreement

This Agreement, including any attached annexures, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

10. Signatures

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

**FOR THE CLIENT:**

_____________________________

Name: {{client_authorised_signatory_name}}

Title: {{client_authorised_signatory_title}}

Date: {{client_signature_date}}

**FOR THE CONSTRUCTION MANAGER:**

_____________________________

Name: {{construction_manager_authorised_signatory_name}}

Title: {{construction_manager_authorised_signatory_title}}

Date: {{construction_manager_signature_date}}

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