Construction Management Agreement

A construction management agreement is a legal contract between multiple parties involved in the design, planning and execution of a construction project. This type of agreement outlines the roles and responsibilities of each party involved and any financial or logistical considerations that need to be considered during the project. Construction management agreements can vary in detail and complexity, depending on the project and the participants involved.

This Construction Management Agreement is made effective as of [Document.CreatedDate] , by and between:

1. [Sender.FirstName] ​ [Sender.LastName] , a company or individual responsible for overseeing the design, planning and execution of the construction project, governed by [Sender.State] and located at [Sender.StreetAddress] .

2. [Client.FirstName] ​ [Client.LastName] , a company or individual responsible for carrying out the construction work on the project, governed by [Client.State] and located at [Client.StreetAddress] .

WHEREAS, the parties wish to enter into a Construction Management Agreement to govern the relationship between each party and the construction project.

1. Cost and Payment Terms

1.1 The project owner agrees to pay the contractor a total of (amount) for completing all work on the construction project, according to the terms and conditions outlined in this contract. The payment schedule will be as follows: (schedule). All payments will be made via (type of payment method).

2. Roles and Responsibilities

2.1 The project owner oversees the project, ensuring that all parties involved work towards the same goals and adhere to relevant legal or regulatory requirements. The contractor completes work promptly and efficiently according to established guidelines and specifications, maintaining the project site and following any safety procedures. The architectural firm designs all aspects of the construction project, including structural or aesthetic elements.

3. Schedule and Scope

Clearly outline the schedule and scope of the construction project, including timelines for milestones, deadlines and any deliverables or requirements.

3.1 The construction project will begin on (date) and is expected to be completed by (date). All work must be completed under the scope of work outlined in this contract, including but not limited to: (list of elements). The parties agree to meet regularly throughout the project to resolve any issues or concerns and update one another on the project's status.

Use our free Construction Proposal Template to outline the scope, timeline, and cost estimates, enabling you to impress potential clients and secure new projects.

4. Changes in the Project

Specify any potential changes to the project or deadlines that may arise and how those changes will be handled.

4.1 If any changes need to be made to the project's scope, schedule, or budget, all parties agree to meet and discuss these changes before implementing them. All parties must approve changes before they can be implemented.

5. Discounts or Incentives

If applicable, specify any potential discounts or incentives to be provided to the contractor.

5.1 If any parties involved in the project meet performance goals or exceed expectations, they may be eligible for cash incentives or discounts. The terms and conditions of these incentives will be outlined in a separate addendum to this contract.

6. Insurance and Liability

6.1 The project owner, contractor and architectural firm agree to hold each other harmless for any damages or injuries that may occur during the construction project. This includes obtaining adequate insurance coverage to protect against these risks. The parties understand they are solely responsible for any costs associated with any insurance claims resulting from the project.

7. Contractor’s Warranties

Note any warranties or guarantees provided by the contractor and specify any potential limitations or exclusions.

7.1 The contractor hereby warrants that they will complete all work in a timely and professional manner, adhering to all industry standards and best practices. The contractor will also provide a one-year warranty on all work performed during the project, excluding any defects resulting from improper use or maintenance by the project owner.

8. Indemnification

8.1 All parties agree to hold each other harmless for any claims, damages, losses, or expenses incurred because of any actions taken by any party involved in the project. This includes both contractual liabilities and liabilities resulting from breaches of any applicable laws or regulations.

9. Legal Rights

9.1 This contract is governed by the laws of [Sender.State] , and any disputes will be settled in a court of law. The parties agree that they have read this agreement, understand its terms and conditions, and sign below of their own free will.

MM / DD / YYYY MM / DD / YYYY

Construction Management Agreement

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FAQ

How to write a Construction Management Agreement?

When writing a construction management agreement, it’s important to consider key factors, such as the project’s scope and timeline, budget and legal requirements or restrictions. You should also carefully review applicable laws and regulations related to contracts and construction management in your jurisdiction.

Once you have gathered all this information, you can begin drafting the actual construction management agreement. Start by naming the parties involved, including both the owner and contractor. Describe the project, including a description of the work to be completed and any applicable timeline or budget restrictions.

What is a Construction Management Agreement?

A construction management agreement is a contract between an owner and a contractor that outlines the terms and conditions of a construction project. This includes details such as the scope of work, budget, timeline, legal requirements and other relevant factors. It may include information about applicable laws and regulations related to contracts and construction management in your jurisdiction.

What should be included in a Construction Management Agreement?

A construction management agreement should typically include information about the project scope and timeline, budget, legal requirements or restrictions, and any applicable laws or regulations. You should also carefully review contract terms to ensure they are consistent with your project goals and objectives. Finally, consulting with an attorney or other construction industry professional may be helpful when drafting a construction management agreement.

How does a Construction Management Agreement work?

A construction management agreement is a contract that outlines the roles and responsibilities of all parties involved in a particular project. This type of contract typically includes provisions for risk mitigation, cost reviews, change orders and other important aspects of the project. When used properly, a construction management agreement can help to streamline the process and ensure that everyone involved is aware of their responsibilities.

What are the advantages of a Construction Management Agreement?

One of the main advantages of a construction management agreement is that it provides more flexibility and control to the project owner. This is because the owner retains overall responsibility for managing the project while assigning certain tasks to professionals in specific areas, such as construction or engineering. In addition, a construction management agreement allows for greater collaboration between all parties involved in the project, as the owner retains direct contact with all stakeholders.

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