The Oregon Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project is a legally binding document that outlines the rights, responsibilities, and expectations of both the owner and the construction manager during the construction phase of a project. This agreement serves as a crucial tool in ensuring a smooth and successful construction process. Under the Oregon Agreement, the owner, who is usually the party initiating the construction project, agrees to hire a construction manager to supervise and oversee the construction activities. The construction manager, on the other hand, accepts the responsibility of providing their expertise and skills to manage the project's execution. Key elements covered in the Oregon Agreement include: 1. Scope of Services: This section defines the specific services the construction manager will provide. It may include pre-construction services such as project planning, cost estimation, and scheduling, as well as construction services like contractor selection, procurement, quality control, and safety management. 2. Project Schedule: A detailed timeline and milestones for the construction project are documented in this section. It sets specific deadlines for completion of various phases and deliverables, ensuring timely completion of the project. 3. Compensation: The agreement will outline the payment terms and conditions for the construction manager's services. It may include a lump-sum fee, a percentage of construction costs, or a combination of both. The agreement may also specify the basis for additional compensation, such as change orders or unforeseen circumstances. 4. Insurance and Liability: This section addresses the insurance and liability requirements of both parties. It typically requires the construction manager to carry comprehensive liability insurance and workers' compensation coverage. It may also specify the owner's responsibility to provide property insurance during the construction period. 5. Dispute Resolution: This section details the process for resolving any disagreements or disputes that may arise during the construction process. It may include mediation or arbitration clauses to prevent lengthy legal battles. 6. Termination: The Oregon Agreement outlines the conditions under which either party can terminate the contract. This could include a failure to meet performance standards, breaches of contract, or other specified reasons. Different types of Oregon Agreements between the owner and construction manager may exist, such as: — Oregon Standard Owner-Construction Manager Agreement: The most commonly used agreement template, it outlines the fundamental terms and conditions for the working relationship between the owner and construction manager. — Oregon Cost-Plus-Fee Owner-Construction Manager Agreement: This type of agreement allows the construction manager to charge the owner the actual cost of construction plus a previously agreed-upon fee for managing the project. It provides more flexibility for changes during the construction process. — Oregon Design-Build Owner-Construction Manager Agreement: In this type of agreement, the construction manager takes on additional responsibilities by providing both design and construction services. It streamlines the project process by eliminating the need for separate contracts with designers. It is essential for both parties to carefully review and negotiate the Oregon Agreement before signing. Consulting with legal professionals experienced in construction law is strongly recommended ensuring that all aspects of the agreement align with the project's specific requirements and comply with Oregon state laws.