The Development Management Agreement is a crucial document used in New Zealand's property development sector when engaging professional development management services for construction and development projects. It establishes the legal and operational framework for the relationship between the property owner/developer and the development manager, defining their respective rights, obligations, and responsibilities. The agreement is particularly important in the New Zealand context, where development projects must comply with specific legislative requirements including the Building Act 2004, Resource Management Act 1991, and local council regulations. This document typically includes detailed provisions for project scope, fee structures, authority levels, reporting requirements, and risk allocation, while ensuring alignment with New Zealand's construction industry practices and standards. The Development Management Agreement serves as the primary contract governing the delivery of development management services and is essential for projects ranging from commercial and residential developments to large-scale mixed-use projects.
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1. Parties: Identifies and defines all parties to the agreement, including the property owner/client and the development manager
2. Background: Sets out the context of the agreement, including details of the development project and the parties' intentions
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation
4. Appointment and Term: Establishes the formal appointment of the development manager and the duration of the agreement
5. Development Manager's Services: Detailed description of the core services to be provided by the development manager
6. Client's Obligations: Outlines the responsibilities and obligations of the client/property owner
7. Fees and Payment: Details the fee structure, payment terms, and any performance-based compensation
8. Project Controls and Reporting: Establishes project management procedures, reporting requirements, and approval processes
9. Authority and Limitations: Defines the development manager's authority to act and any limitations on that authority
10. Intellectual Property: Addresses ownership and usage rights of project-related intellectual property
11. Confidentiality: Sets out obligations regarding confidential information
12. Liability and Indemnification: Establishes liability limits and indemnification obligations
13. Insurance: Specifies required insurance coverage and obligations
14. Termination: Details circumstances and procedures for termination of the agreement
15. Dispute Resolution: Establishes procedures for resolving disputes between parties
16. General Provisions: Contains standard boilerplate clauses including notices, assignments, amendments, etc.
1. Development Budget: Detailed section about budget management and control - used when the development manager has significant budget responsibility
2. Value Engineering: Specific provisions for cost optimization - included when cost management is a key focus
3. Sustainability Requirements: Special provisions for green building or sustainability targets - used for projects with specific environmental goals
4. Marketing and Sales: Included when the development manager's scope includes marketing/sales responsibilities
5. Multiple Stage Provisions: Used for projects with distinct development stages requiring different approaches
6. Community Engagement: Required when the project needs significant community consultation
7. Heritage Considerations: Included for projects involving heritage buildings or sites
8. Force Majeure: Detailed provisions for unforeseen events - particularly relevant post-COVID
9. Key Personnel: Used when specific individuals are crucial to the project delivery
10. Third Party Agreements: Required when managing relationships with multiple stakeholders or contractors
1. Schedule 1 - Services Scope: Detailed breakdown of all services to be provided by the development manager
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, including base fees, performance fees, and disbursements
3. Schedule 3 - Project Program: Project timeline, milestones, and key dates
4. Schedule 4 - Development Budget: Detailed project budget including all cost categories
5. Schedule 5 - Approval Process: Detailed procedures for obtaining necessary approvals
6. Schedule 6 - Reporting Requirements: Templates and requirements for project reporting
7. Schedule 7 - Key Personnel: Details of key team members and their roles
8. Schedule 8 - Site Details: Legal description and relevant details of the development site
9. Appendix A - Project Plans: Preliminary designs, concepts, or approved plans
10. Appendix B - Consultant Agreements: Forms of agreement for engaging consultants
11. Appendix C - Insurance Requirements: Detailed insurance specifications and requirements
Relevant legal definitions
Clauses
Relevant Industries
Real Estate Development
Commercial Property
Residential Property
Industrial Development
Mixed-Use Development
Infrastructure Development
Retail Development
Healthcare Facilities
Educational Facilities
Hospitality and Tourism
Urban Regeneration
Relevant Teams
Legal
Development
Project Management
Construction
Commercial
Property
Operations
Finance
Risk and Compliance
Asset Management
Investment
Planning and Design
Procurement
Strategy
Relevant Roles
Development Manager
Project Director
Property Developer
Construction Manager
Development Director
Investment Manager
Asset Manager
Project Manager
Commercial Director
Development Coordinator
Chief Development Officer
Property Manager
Construction Director
Portfolio Manager
Legal Counsel
Risk Manager
Financial Controller
Managing Director
Operations Manager
Compliance Manager
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