Is an electronic signature enforceable?

Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws, electronic signatures are legally equivalent to handwritten signatures for most transactions, provided intent, consent, attribution, and reliable record retention are established.

When is notarization required?

Notarization depends on state law and the document type; deeds and certain affidavits commonly require notary acknowledgment. Check state notary rules and remote notarization availability before execution.

Who must sign the agreement?

Authorized representatives of each contracting party must sign. For entities, include printed name, title, and confirm signer authority to bind the organization to avoid later challenges to enforceability.

How should change orders be handled?

Require written change orders signed by authorized parties that reference original contract provisions, state scope and price adjustments, and include new schedule impacts to maintain an auditable change history.

How long should I keep signed records?

Retain executed agreements for the contract term plus at least three years; specific federal and industry rules apply (e.g., IRC §6501(a) for tax records, 45 CFR §164.530(j) for HIPAA retention).

Can I use an eSignature platform for this agreement?

Yes. Use a platform that supports required authentication, audit trails, secure storage, and exportable signed PDFs. For health or regulated projects, verify HIPAA or 21 CFR Part 11 capabilities and obtain a BAA if required.

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Agreement Between Owner and Construction Manager

Agreement Between Owner and Construction Manager

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Agreement Between Owner and Construction Manager Covers

A construction management agreement between owner and construction manager is a written contract that defines roles, responsibilities, scope of services, fee structure, and risk allocation for a building project. It sets the construction manager's duties during preconstruction, procurement, and construction phases, outlines compensation methods such as cost-plus or guaranteed maximum price, and establishes decision-making authority, change order handling, and subcontractor coordination. The agreement also addresses insurance, indemnity, termination rights, dispute resolution, and compliance with applicable law, creating a baseline for project governance and performance measurement.

Why a Clear Construction Management Agreement Matters

Use this Agreement Between Owner and Construction Manager to clearly allocate responsibilities, control project costs, and document compensation and liability terms. A well-drafted agreement reduces disputes, clarifies decision-making during construction, and creates enforceable processes for change orders and contract termination.

Who Typically Uses This Agreement

Project owners, construction managers, general contractors, and project counsel commonly use this agreement to define roles and manage responsibilities across project stages.

Project owners: define scope, budget, and oversight responsibilities during construction.
Construction managers: outline deliverables, fee structure, and subcontractor coordination obligations.
Lenders and insurers: review contract terms for risk allocation and payment security.

Core Sections to Include in the Agreement

Core sections of the Agreement Between Owner and Construction Manager establish scope, payment, schedule, risk allocation, insurance, dispute resolution, and termination rights.

Scope

Describe services during preconstruction and construction, specify deliverables, define milestones, include excluded work, and attach project plans, drawings, and a definitive scope exhibit to avoid later disputes.

Compensation

Detail the fee model such as cost‑plus, GMP, or fixed fee, list reimbursable costs, payment schedule, retainage provisions, and conditions for fee adjustments or incentives tied to schedule or budget performance.

Schedule

Include the baseline schedule, key milestones, critical path responsibilities, procedures for delays, extensions of time, and the process for updating and approving schedule revisions during construction.

Risk Allocation

Assign responsibility for unforeseen conditions, site access, utility relocations, and insurance; allocate indemnity, expressly limit consequential damages where permitted by law, and define fault-based remedies.

Insurance

Specify required policies, coverage limits, additional insured endorsements, waiver of subrogation, builder's risk, and evidence requirements; require certificates before mobilization and maintain coverage through closeout.

Claims & Disputes

Define notice procedures, time limits for claims, escalation steps, mediation or binding arbitration, attendant costs allocation, and the governing law and venue for resolving disputes.

Security and Compliance Details to Record

Encryption: TLS 1.2 and 1.3 in transit

At‑Rest Protection: AES-256 encryption at rest

Certifications: SOC 2 Type II, ISO 27001

HIPAA Support: BAA available for covered entities

ESIGN/UETA: Compliant with federal and state law

Audit Trail: Comprehensive timestamps and IP logs

Step-by-Step: How to Complete and Execute the Agreement

Follow these steps to complete, sign, and execute the Agreement Between Owner and Construction Manager in order and minimize risk during procurement and construction.

01

Prepare Draft: Assemble scope, schedule, and exhibits for review.
02

Internal Review: Legal, finance, and procurement review contract terms.
03

Negotiate Terms: Agree on payment, insurance, and change order procedures.
04

Execute Agreement: Obtain signatures, notarization if required, and distribute copies.

Suggested Online Workflow Settings for eSigning

Configure an online workflow to collect signatures, route approvals, apply conditional fields, and retain an audit trail for the construction management agreement.

Workflow Field and Configuration Name	Configuration
Signer Order and Routing Sequence	Owner then Construction Manager then lender or insurer as applicable
Authentication and Access Controls Settings	Use email plus SMS code or SSO for higher assurance
Conditional Field Logic Triggers Configuration	Show subcontractor clauses only if CM will self-perform or hire subs
Document Retention and Audit Storage	Store signed PDF with embedded audit trail and metadata

How eSigning and Routing Typically Works

A typical e-signing workflow automates field placement, signer routing, authentication, and retention of a signed PDF with an audit trail for the agreement.

Upload: Upload contract and attach scope exhibits.
Place Fields: Add signature, initials, date, and conditional sections.
Invite Signers: Send email or link; choose authentication method.
Complete: Signers execute; system captures audit trail and stores PDF.

Platform Capabilities to Verify Before eSubmission

The agreement can be shared and signed using email links, secure eSignature platforms, remote notarization where allowed, or in-person execution to meet project requirements.

Integrations: Works with Procore and NetSuite
Formats: Accepts PDF, DOCX, and HTML
Authentication: Email, SMS, KBA, SSO options

Potential Penalties and Legal Risks of an Incorrect Agreement

Contract Voidance: Ambiguous terms risk unenforceability

Liability Exposure: Incorrect indemnity widens obligations

Payment Delays: Missing billing terms delay cash flow

Lien Risk: Improper waiver language may affect liens

Regulatory Noncompliance: Failure to follow state rules causes penalties

Data Breach: Poor storage increases privacy liability

Common Mistakes to Avoid When Preparing the Agreement

Using vague scope language that leaves critical tasks undefined, which commonly leads to disputes over responsibility and change order scope.
Failing to attach or reference up-to-date project drawings and specifications, allowing conflicting interpretations about deliverables and payment triggers.
Omitting clear notice procedures and time limits for claims, which can bar later recovery or complicate dispute resolution.
Neglecting to confirm signer authority or entity names, causing enforceability challenges and delayed payments when signatories lack capacity.

Key Dates and Deadlines to Capture in the Agreement

Capture critical dates in the agreement to avoid disputes over performance, payments, and claims; set clear notice and milestone timelines.

Effective Date and Term:

Specify the MM/DD/YYYY effective date and contract term or termination conditions

Payment Milestones:

Define dates for progress payments, retainage releases, and final payment upon closeout

Notice Periods:

Set time limits for claims, default notices, and cure periods

Substantial Completion:

Identify date or conditions for substantial completion and associated obligations

Final Closeout:

Provide deadlines for punchlist completion, warranties, and certificate issuance

Practical Examples and Customer Outcomes

These examples show how project teams and firms use the agreement to accelerate approvals and reduce administrative friction on active projects.

Optica Ventures — Brian Fitzgibbons

Optica Ventures used signNow to circulate construction management agreements and obtain signatures from remote stakeholders during procurement.

The interface simplified internal and external signing for a distributed team.
Brian Fitzgibbons, COO, said the interface is simple and easy-to-use for the team and for customers, enabling faster contract turnaround without requiring in-person signing or complex file transfers.

Martin Properties — Tim Martin

Martin Properties implemented online execution for CM agreements to streamline closings across multiple rental projects.

Mobile and offline signing supported remote supervisors on site.
Tim Martin, Founder, reported he can process and execute all of these documents online with compliance and security, and access signed forms on mobile or offline to get documents back to necessary parties efficiently.

eSignature Vendor Pricing and Capabilities for Executing Construction Agreements

Comparison of typical vendor starting prices and key capabilities relevant to executing and managing construction management agreements; signNow appears first per platform ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (premium plan)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About the Agreement Between Owner and Construction Manager

Answers to common questions about enforceability, signatures, notarization, and execution options for the Agreement Between Owner and Construction Manager.

Need help? Contact support

Is an electronic signature enforceable?
Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws, electronic signatures are legally equivalent to handwritten signatures for most transactions, provided intent, consent, attribution, and reliable record retention are established.
When is notarization required?
Notarization depends on state law and the document type; deeds and certain affidavits commonly require notary acknowledgment. Check state notary rules and remote notarization availability before execution.
Who must sign the agreement?
Authorized representatives of each contracting party must sign. For entities, include printed name, title, and confirm signer authority to bind the organization to avoid later challenges to enforceability.
How should change orders be handled?
Require written change orders signed by authorized parties that reference original contract provisions, state scope and price adjustments, and include new schedule impacts to maintain an auditable change history.
How long should I keep signed records?
Retain executed agreements for the contract term plus at least three years; specific federal and industry rules apply (e.g., IRC §6501(a) for tax records, 45 CFR §164.530(j) for HIPAA retention).
Can I use an eSignature platform for this agreement?
Yes. Use a platform that supports required authentication, audit trails, secure storage, and exportable signed PDFs. For health or regulated projects, verify HIPAA or 21 CFR Part 11 capabilities and obtain a BAA if required.

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