Construction Management Agreement
About this form
The Construction Management Agreement is a legal document that outlines the relationship between a management consultant and a construction company. This agreement specifies the scope of services to be provided by the consultant during the construction of a project. It differs from other construction contracts by focusing specifically on the management aspect, detailing responsibilities related to design review, bidding, construction supervision, and project closeout.
What’s included in this form
- Identification of the parties: Names and details of the management consultant and the client.
- Scope of services: Specific construction management services the consultant will provide.
- Fees and reimbursement: Breakdown of consultant fees and expense reimbursement procedures.
- Term of the agreement: Start and end dates of the contractual relationship.
- Indemnification: Responsibilities for liability and claims between the parties.
- Governing law: Specification of the state laws that will govern the agreement.
When this form is needed
This form should be used when a client wishes to hire a construction management consultant for a building project. It's appropriate in scenarios where oversight of the construction process is required to ensure quality, adherence to timelines, and budget management. Using this agreement helps to clearly delineate the responsibilities of the consultant and the client, reducing the potential for misunderstandings during the project.
Intended users of this form
- Construction companies seeking professional management services for specific projects.
- Developers looking for expert guidance in construction oversight.
- Clients who require detailed assistance from planning through project completion.
- Management consultants specializing in construction project management.
Instructions for completing this form
- Identify the parties involved by filling in the names and contact details of both the management consultant and the client.
- Specify the project name and description to clarify the scope of construction management services.
- Detail the fees and payment structure, including the Construction Management Fee and reimbursement for expenses.
- Set the term of the agreement by entering the effective and termination dates.
- Ensure any special provisions, such as indemnification and governing law, are completed accurately.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to specify the exact services to be provided, which can lead to misunderstandings later.
- Not clearly outlining the payment terms and schedule, which can cause cash flow issues.
- Omitting the project name and details, making it difficult to refer back to the agreement.
- Neglecting to review the form for state-specific legal requirements that could affect its validity.
Why use this form online
- Convenience: Easily download and complete the form without the need for in-person meetings.
- Editability: Modify the template to fit specific project needs and details.
- Cost-effective: Save on legal fees while ensuring a professionally drafted agreement.
- Speed: Access the form quickly and start your project without delay.
Key takeaways
- The Construction Management Agreement is crucial for defining the roles and responsibilities of construction management services.
- Clarity in fees and payment terms can help mitigate future disputes.
- Properly completing the agreement can enhance project management effectiveness and accountability.
Definitions you should know
- Consultant: The professional responsible for managing construction activities and services.
- Client: The entity or individual hiring the consultant for construction management.
- Project: The specific construction undertaking detailed within the agreement.
- Indemnification: A contractual obligation where one party agrees to compensate the other for certain damages or losses.
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FAQ
This Construction Management Agreement is a legal document that outlines the relationship between a management consultant and a construction company, detailing the scope of services and responsibilities related to design review, bidding, construction supervision, and project closeout. It also specifies key terms—identification of parties, fees and reimbursement, term, indemnification, and governing law—to guide the engagement.
This agreement works by clearly defining the construction management consultant’s role and responsibilities for the project. It covers the scope of services (design review, bidding oversight, construction supervision, and project closeout), how fees and expenses are handled, the term of the engagement, indemnification, and which state's law governs the contract.
A Construction Management Agreement is a contract used when a client hires a management consultant to oversee construction activities. It identifies the parties and sets the scope of services (design review, bidding oversight, construction supervision, and project closeout), plus fees and reimbursement, term, indemnification, and governing law to govern the engagement.
Construction Companies seeking professional management services for a project, developers needing construction oversight, clients requiring planning through project closeout, and management consultants specializing in construction project management are the intended users. This form helps align expectations, clarifies responsibilities, and provides a framework for managing design reviews, bidding, supervision, and closeout.
Termination rights are not specified in the listed components, which focus on the term, scope of services, fees, indemnification, and governing law. Exiting early would depend on the actual signed contract’s terms or mutual agreement and may require legal advice.
A CM (construction manager) is engaged to manage the project on behalf of the client, focusing on design review, bidding oversight, construction supervision, and project closeout, as described in this agreement. A GC (general contractor) typically performs the actual construction work under a separate contract with the owner, not primarily managing the project.
