The Construction Management Agreement is a critical document used in the Australian construction industry when a project owner requires professional construction management services for their development project. This agreement type is particularly suitable for complex projects where the principal seeks to retain greater control and flexibility over the construction process while benefiting from professional construction management expertise. The document establishes the construction manager's scope of services, which typically includes pre-construction planning, procurement management, construction supervision, and project close-out services. It incorporates requirements under Australian federal and state construction laws, including Work Health and Safety regulations, Security of Payment legislation, and the National Construction Code. The agreement is structured to provide clear delineation of responsibilities, risk allocation, and commercial terms while maintaining flexibility for project-specific requirements.
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1. Parties: Identifies and provides details of the principal/owner and the construction manager
2. Background: Outlines the project context, purpose of the agreement, and basic premises
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles
4. Appointment and Term: Establishes the formal appointment of the construction manager and duration of services
5. Construction Manager's Services: Details core services including pre-construction, construction phase, and post-construction services
6. Principal's Obligations: Outlines the principal's responsibilities, including provision of information and timely decisions
7. Personnel and Resources: Specifies key personnel requirements, staffing obligations, and resource commitments
8. Fees and Payment: Details the fee structure, payment terms, and invoicing procedures
9. Time and Program: Establishes project timeline, milestones, and program management requirements
10. Quality Management: Sets quality standards, inspection requirements, and quality control procedures
11. Work Health and Safety: Defines WHS obligations, compliance requirements, and safety management procedures
12. Insurance and Liability: Specifies required insurances and addresses liability allocation
13. Intellectual Property: Covers ownership and usage rights of project documentation and intellectual property
14. Confidentiality: Establishes confidentiality obligations and information handling requirements
15. Dispute Resolution: Details the process for resolving disputes between parties
16. Termination: Specifies termination rights, procedures, and consequences
17. General Provisions: Contains standard boilerplate clauses including notices, governing law, and entire agreement
1. Design Management: Include when construction manager has design management responsibilities
2. Value Management: Include for projects requiring formal value management processes
3. Sustainability Requirements: Include when project has specific sustainability or green building targets
4. Building Information Modeling: Include when BIM is required for the project
5. Security of Payment: Include detailed provisions when project involves significant subcontracting
6. Early Works: Include when construction manager performs services before main construction contract
7. Performance Incentives: Include when agreement includes performance bonuses or incentives
8. Community Engagement: Include for projects requiring significant community consultation
9. Heritage Requirements: Include for projects involving heritage buildings or sites
1. Schedule 1 - Services Scope: Detailed description of construction management services
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Key Personnel: Details of key personnel and their roles/responsibilities
4. Schedule 4 - Program: Project timeline, milestones, and key dates
5. Schedule 5 - Site Details: Information about the project site and conditions
6. Schedule 6 - Required Insurances: Specific insurance requirements and coverage levels
7. Schedule 7 - Quality Management Plan: Detailed quality management procedures and requirements
8. Schedule 8 - WHS Management Plan: Detailed safety management procedures and requirements
9. Schedule 9 - Forms and Templates: Standard forms for project administration
10. Appendix A - Project Brief: Detailed project requirements and specifications
11. Appendix B - Drawing Register: List of project drawings and revisions
12. Appendix C - Reports Register: List of relevant reports and investigations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Healthcare Construction
Education Facilities
Retail Development
Mining and Resources
Hospitality Development
Government and Public Works
Transport and Logistics
Sports and Recreation Facilities
Relevant Teams
Legal
Construction
Commercial
Operations
Project Management
Risk and Compliance
Procurement
Development
Technical Services
Contract Administration
Finance
Relevant Roles
Construction Manager
Project Director
Commercial Manager
Contract Administrator
Project Manager
Development Manager
Legal Counsel
Risk Manager
Procurement Manager
Operations Director
Chief Executive Officer
Construction Director
Technical Director
Quantity Surveyor
Site Manager
Facilities Manager
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