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Construction Management Agreement

This Construction Management Agreement template is designed for use by companies engaging a construction manager for oversight and coordination of building projects. It outlines the scope of work, fees, responsibilities, and timelines, ensuring clear expectations between parties.

Updated 15d ago
constructionmanagementagreementcontractproject managementSMESouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Construction Management Agreement

This Construction Management Agreement ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}}, ('Effective Date') by and between:

{{client_company_name}}, a company duly incorporated under the laws of {{client_company_jurisdiction}}, with its principal place of business at {{client_company_address}} (hereinafter referred to as 'Client');

AND

{{manager_company_name}}, a company duly incorporated under the laws of {{manager_company_jurisdiction}}, with its principal place of business at {{manager_company_address}} (hereinafter referred to as 'Construction Manager').

Collectively referred to as 'the Parties'.

Recitals

WHEREAS, the Client desires to engage the Construction Manager to provide comprehensive construction management services for the project described herein (the 'Project');

WHEREAS, the Construction Manager possesses the necessary expertise, experience, and resources to perform such services;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

Scope of Services

The Construction Manager shall provide construction management services for the Project located at {{project_address}} as detailed in Appendix A (Scope of Work). These services shall include, but not be limited to:

1. Project Planning and Scheduling: Developing and maintaining a comprehensive project schedule, budget, and master plan.

2. Cost Management: Preparing cost estimates, managing project budgets, and approving invoices.

3. Contractor Selection and Management: Assisting in the selection of contractors, administering contracts, and overseeing their performance.

4. Quality Control: Implementing and monitoring quality assurance programs to ensure compliance with project specifications.

5. Site Supervision: Providing on-site supervision to ensure work progresses according to plan, specifications, and safety standards.

6. Reporting: Providing regular progress reports to the Client, including financial updates and schedule adherence.

Term and Termination

This Agreement shall commence on the Effective Date and shall continue until the completion of the Project and final payment, unless terminated earlier as provided herein.

Either Party may terminate this Agreement by providing {{notice_period}} days' written notice to the other Party in the event of a material breach of this Agreement, provided such breach is not remedied within the notice period.

Upon termination, the Construction Manager shall be compensated for services rendered up to the date of termination.

Fees and Payment

In consideration for the services provided, the Client shall pay the Construction Manager a fee of {{management_fee_amount}} ({{management_fee_currency}}) as outlined in Appendix B (Fee Schedule).

Payments shall be made as follows: {{payment_schedule}}.

All invoices are due within {{payment_due_days}} days of receipt.

Responsibilities of the Parties

Client Responsibilities:

1. Provide all necessary project information, approvals, and decisions in a timely manner.

2. Ensure availability of project funding and timely payment of invoices.

Construction Manager Responsibilities:

1. Perform services with professional skill and care, consistent with industry standards.

2. Maintain comprehensive project records and documentation.

3. Adhere to all applicable laws, regulations, and building codes.

Confidentiality

Both Parties agree to keep confidential all non-public information received from the other Party during the term of this Agreement and for a period of {{confidentiality_period}} years thereafter.

Force Majeure

Neither Party shall be liable for any failure or delay in performing its obligations under this Agreement if such failure or delay is caused by circumstances beyond its reasonable control, including but not limited to acts of God, war, terrorism, civil commotion, strikes, or governmental acts.

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_jurisdiction}}.

Any dispute arising out of or in connection with this Agreement shall first be resolved through good faith negotiations between the Parties. If the dispute cannot be resolved through negotiation, the Parties agree to submit to mediation in {{mediation_location}}.

Entire Agreement

This Agreement, including any appendices, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether written or oral.

Signatures

IN WITNESS WHEREOF, the Parties hereto have executed this Construction Management Agreement as of the Effective Date.

For the Client:

___________________________

Name: {{client_signatory_name}}

Title: {{client_signatory_title}}

Date: {{client_signature_date}}

For the Construction Manager:

___________________________

Name: {{manager_signatory_name}}

Title: {{manager_signatory_title}}

Date: {{manager_signature_date}}

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