A construction management agreement is a crucial document that outlines the terms and conditions between a client and a construction manager. It serves as a guide for the entire construction project, ensuring that both parties are on the same page throughout the duration of the project.
If you are in the construction industry, it is essential that you have a construction management agreement in place. Here is a sample agreement to help you get started.
1. Parties Involved
This section outlines the names of the parties involved in the agreement, including the client and the construction manager. It should also include their addresses and contact information.
2. Scope of Work
The scope of work section outlines the specific tasks that the construction manager will perform. It should be detailed, including the estimated start and completion dates.
3. Payment Terms
This section outlines the payment terms for the construction manager. It should include the total amount to be paid, payment schedule, and any additional expenses that may occur during the project.
4. Termination Clause
The termination clause outlines the conditions under which the agreement may be terminated. It should include the reasons for termination and any penalties that may arise from terminating the agreement.
5. Insurance
This section outlines the insurance coverage required for the construction project. It should include the types of insurance required, the minimum coverage amounts, and any additional requirements.
6. Dispute Resolution
The dispute resolution section outlines the procedures for resolving any disputes that may arise during the construction project. It should include the steps that both parties will take to resolve the disputes and the time frame for resolution.
7. Confidentiality
The confidentiality clause outlines the confidentiality obligations of both parties. It should include the types of information that must be kept confidential and the consequences of disclosing confidential information.
Conclusion
A simple construction management agreement sample is a useful tool for ensuring that both the client and the construction manager are on the same page. It is important to note that the agreement should be tailored to the specific needs of the project and the parties involved. A well-drafted construction management agreement can help avoid costly disputes and ensure a successful construction project.