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Construction Management Agreement template
Construction Management Agreement sample


What is Construction Management Agreement?

Construction Management Agreement Outlines the responsibilities and services of a construction manager overseeing a construction project, specifying management tasks.



Sample template:



Construction Management Agreement

This Construction Management Agreement (the "Agreement") is made and entered into as of the date last signed below (the "Effective Date"), by and between Pinnacle Builders Inc., a United States corporation ("Construction Manager"), and Summit Properties LLC, a United States limited liability company ("Owner"), collectively referred to as the "Parties," for the purpose of providing construction management services for the Evergreen Heights Development Project (the "Project").



1. Management Services

1.1. Scope of Services


Construction Manager agrees to provide construction management services for the Project, including, but not limited to, the following: planning, design coordination, scheduling, budget control, procurement, quality management, safety management, commissioning, and close-out procedures.



1.2. Performance Standard


Construction Manager shall perform its services under this Agreement in accordance with generally accepted construction management practices and the applicable laws of the United States.



2. Responsibilities

2.1. Responsibilities of Construction Manager


Construction Manager will be responsible for the following:



  • Provide management and coordination of all Project matters, including communication with Owner.

  • Develop and maintain a Project schedule and budget.

  • Provide qualified personnel for construction management services.

  • Procure and manage subcontractors and suppliers.

  • Coordinate and obtain necessary permits, approvals, and inspections from governing authorities.

  • Develop and implement a Project-specific safety plan and maintain a safe work environment at the Project site.

  • Review and approve the payment applications submitted by subcontractors and suppliers.

  • Monitor construction progress and quality, and notify the Owner promptly of any delays or deficiencies.

  • Coordinate and participate in the commissioning and turnover of the completed Project.

  • Prepare and submit a final close-out report, including as-built drawings, warranties, and operation and maintenance manuals, upon completion of the Project.

  • Perform any other responsibilities set forth in this Agreement or reasonably requested by the Owner.



2.2. Responsibilities of Owner


Owner will be responsible for the following:



  • Provide clear, timely, and concise directions and information to Construction Manager.

  • Designate a representative for communication with Construction Manager.

  • Make timely decisions and obtain approvals as required for the Project.

  • Provide funding for the Project, including payment of Construction Manager's fees and expenses as set forth in this Agreement.

  • Coordinate with governmental authorities as necessary for approvals, permits, and inspections.

  • Notify Construction Manager of any issues or concerns related to the Project.

  • Arrange for and provide access to the Project site for Construction Manager, subcontractors, suppliers, and inspectors.

  • Perform any other obligations set forth in this Agreement or reasonably requested by Construction Manager.



3. Management Team and Structure

3.1. Key Personnel


Construction Manager and Owner shall each designate an individual to serve as the primary point of contact for their respective Party. The Parties may replace their designated contact by providing written notice to the other Party.



3.2. Construction Manager’s Team


Construction Manager’s team shall consist of qualified construction management personnel as needed to properly perform its services under this Agreement, including a project manager, superintendent, scheduler, and safety officer.



3.3. Subcontractors and Suppliers


Construction Manager shall solicit, obtain, and manage proposals, pricing, and contracts for all necessary subcontractors and suppliers. Construction Manager shall use reasonable efforts to select qualified subcontractors and suppliers and enter into written contracts for all significant work and materials as necessary to deliver the Project.



4. Governing Law and Compliance

This Agreement shall be governed by and construed in accordance with the laws of the United States. Both Parties shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the Project. Construction Manager shall be responsible for ensuring its subcontractors and suppliers are in compliance with all applicable laws and regulations.



5. Term and Termination

This Agreement shall commence on the Effective Date and continue in full force and effect until completion of the Project, unless terminated earlier in accordance with this Agreement. Either Party may terminate this Agreement upon thirty (30) days written notice to the other Party.



6. Miscellaneous

6.1. Entire Agreement. This Agreement, including any exhibits or attachments, contains the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations, and communications between the Parties.


6.2. Amendments. This Agreement may be amended only by a written instrument signed by both Parties.


6.3. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.


6.4. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement as to the signing Party.



IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly authorized representatives as of the Effective Date.



Pinnacle Builders Inc. Summit Properties LLC


By: _____________________________ By: _____________________________


Name: ___________________________ Name: ___________________________


Title: ___________________________ Title: ___________________________


Date: ___________________________ Date: ___________________________

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Common Sections of a Construction Management Agreement


In this Construction Management Agreement, you will see the following sections:

  1. Management Services
  2. Responsibilities
  3. Management Team and Structure
  4. Governing Law and Compliance
  5. Term and Termination
  6. Miscellaneous


Summary of each section:

  1. Management Services : This section outlines the scope of services the Construction Manager will provide for the project, such as planning, scheduling, and quality management. It also states that the Construction Manager must perform their services according to accepted practices and applicable laws.

  2. Responsibilities : This section details the specific responsibilities of both the Construction Manager and the Owner. The Construction Manager is responsible for tasks like managing subcontractors and maintaining a safe work environment, while the Owner is responsible for providing clear directions, funding, and access to the project site.

  3. Management Team and Structure : This section describes the key personnel involved in the project, including the primary point of contact for each party. It also outlines the Construction Manager's team, which may include a project manager, superintendent, and safety officer, and explains how subcontractors and suppliers will be managed.

  4. Governing Law and Compliance : This section states that the agreement is governed by the laws of the United States and that both parties must comply with all applicable laws, rules, and regulations. The Construction Manager is responsible for ensuring that subcontractors and suppliers also comply with these requirements.

  5. Term and Termination : This section explains that the agreement begins on the Effective Date and continues until the project is completed, unless it is terminated earlier by either party with thirty (30) days written notice.

  6. Miscellaneous : This section covers various miscellaneous provisions, such as the entire agreement clause, amendment process, binding effect, and the use of counterparts for signing the agreement. It also includes the signature lines for both parties to execute the agreement.

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