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Construction Management Agreement Template for South Africa

A comprehensive agreement governed by South African law that establishes the relationship between a Client and a Construction Manager for the professional management of construction projects. The agreement details the Construction Manager's scope of services, responsibilities, and authority in managing construction works, ensuring compliance with South African construction regulations, health and safety requirements, and industry standards. It includes provisions for project coordination, cost control, quality management, and program management, while incorporating specific requirements of South African construction legislation, including the Construction Industry Development Board Act and Occupational Health and Safety Act.

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What is a Construction Management Agreement?

The Construction Management Agreement is a crucial document used when a Client requires professional construction management services for their construction project in South Africa. This agreement establishes the legal and operational framework for the Construction Manager's appointment, defining their authority to act on behalf of the Client in managing contractors, coordinating construction activities, and ensuring project delivery. The document incorporates requirements from South African legislation, including the Construction Industry Development Board Act, Occupational Health and Safety Act, and relevant building regulations. It's particularly important for complex projects requiring professional oversight, coordination of multiple contractors, and strict compliance with local regulations. The agreement covers essential aspects such as scope of services, payment terms, project control procedures, and risk allocation, while addressing specific South African requirements regarding safety, labor practices, and Black Economic Empowerment considerations.

What sections should be included in a Construction Management Agreement?

1. Parties: Identification of the Client and Construction Manager, including their registered addresses and company details

2. Background: Context of the agreement, including project overview and appointment basis

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and interpretation rules

4. Appointment and Duration: Formal appointment of the Construction Manager and contract term

5. Construction Manager's Obligations: Detailed scope of services, including pre-construction, construction, and post-construction phases

6. Client's Obligations: Client's responsibilities including provision of information, approvals, and access

7. Project Control and Reporting: Management procedures, reporting requirements, and project control mechanisms

8. Payment Terms: Fee structure, payment schedule, and invoicing procedures

9. Personnel and Resources: Key personnel requirements, staffing obligations, and resource commitments

10. Health and Safety: Compliance with OHS Act and Construction Regulations requirements

11. Insurance and Liability: Required insurance coverage and liability limitations

12. Intellectual Property: Ownership and usage rights of project documentation and designs

13. Confidentiality: Protection of confidential information and trade secrets

14. Termination: Grounds for termination and consequences

15. Dispute Resolution: Dispute resolution procedures including mediation and arbitration

16. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement

What sections are optional to include in a Construction Management Agreement?

1. Environmental Management: Required when project has significant environmental impacts or requires environmental permits

2. Community Engagement: Needed for projects requiring community liaison or local content requirements

3. BEE Requirements: Required for projects subject to Black Economic Empowerment requirements

4. Value Engineering: Optional section for projects where cost optimization is a key requirement

5. Quality Management System: Required for complex projects needing specific quality management procedures

6. Multiple Site Provisions: Required when the project involves multiple construction sites

7. Force Majeure: Optional detailed provisions for force majeure events

8. Step-in Rights: Required for projects where the client may need to take over management

9. Penalties and Incentives: Optional performance-based penalties or incentives structure

What schedules should be included in a Construction Management Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of construction management services

2. Schedule 2 - Fee Schedule: Detailed fee calculation, rates, and payment terms

3. Schedule 3 - Project Program: Project timeline, milestones, and key dates

4. Schedule 4 - Key Personnel: Details of key team members and their roles

5. Schedule 5 - Client's Requirements: Detailed client specifications and requirements

6. Schedule 6 - Project Specific Requirements: Special requirements unique to the project

7. Schedule 7 - Forms and Procedures: Standard forms for applications, certificates, and reports

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage limits

9. Appendix A - Site Information: Site details, access requirements, and existing conditions

10. Appendix B - Statutory Requirements: Applicable laws, regulations, and compliance requirements

11. Appendix C - Health and Safety Specifications: Detailed health and safety requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

South Africa

Cost

Free to use

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