Construction Management Agreement
Agreement made on the ______________ (date) , between ___________________
-________________________ (Name of Management Consultant) , a corporation organized
and existing under the laws of the state of ______________, with its principal office located at
___________________________________________________________________________
(street address, city, county, state, zip code) , referred to herein as Consultant , and
_________________________ (Name of Client) , a corporation organized and existing under
the laws of the state of _______________, with its principal office located a ________________
______________________________________________________________ (street address,
city, county, state, zip code) , referred to herein as Company .
Whereas, Consultant has offered to provide construction management services to the
Company for the construction of the Company's _________________________ (Name of
Project) , hereinafter referred to as the Project; and
Whereas, the Company desires to have Consultant provide construction management
services to the Company;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Construction Management Services: Consultant will provide the following services
in connection with the construction of the Project:
A. Design/Plan Review
Consultant will work closely with the Company's architect and engineers to
assist in the development of a detailed set of architectural and engineering drawings and
specifications. Upon receipt of the architectural and engineering drawings from the
Company's architect, as-builts 1
from previous projects, design criteria and the real
property relating to construction, Consultant will review the drawings before submittal for
building permits.
B. Bidding & Permits
Consultant will prepare bid forms and invitation to bid letters to accompany
the architectural and engineering drawings to be distributed to selected general
contractors the Company has approved to handle the general construction of the space
as well as for all millwork, theme options, signage, graphics and other special
equipment. Bids will be evaluated and a recommendation will be provided to the
Company. A contract will be prepared for the general contractor with the Company's
approval.
C. Construction Supervision
Consultant will monitor the day-to-day activities of the general contractor and
coordinate scheduling and material and equipment deliveries. Discrepancies, field
1
As-builts are the latest changes in the blue prints that have been shown on new drawings to show in
actuality the way it was built as opposed to as it was designed. To maintain as-builts means to keep them
up to date with all the current and latest changes.
conditions and requests for additional information will be handled and resolved. Periodic
visits to the project will be made from pre-construction through the construction phase of
the project to monitor progress and quality.
D. Punchlist and Close-Out
A final visit to the project will be made upon substantial completion of
construction. A punchlist will be prepared noting all items not completed or requiring
rework to make the Project ready for occupancy and operation.
E. Pay Request Review
All requests for payment, including change orders, will be reviewed and
evaluated. Lien waivers will be obtained, reviewed and compared to the pay requests.
All required documentation from the general contractor and equipment, fixture and other
suppliers, including the completion of punchlist items, will be obtained. Consultant will
advise the Company that the contractor may be paid.
2. Fees and Reimbursement of Expenses
A. As compensation for Consultant's services under this Agreement, the
Company shall pay, or cause to be paid, to Consultant a fee (the Construction
Management Fee) of $_________. Should the Company desire to utilize Consultant
for additional aspects of the Project, the Construction Management Fee will be an
additional $___________ per hour. The Construction Management Fee shall be paid
as follows: Twelve (12) monthly payments of $___________ on the first of each month
commencing _____________ (date) through ______________ (date) .
B. The fee paid under Paragraph 2(A) above does not cover expenses. In
addition, the Company shall pay all out-of-pocket expenses of Consultant, however,
travel and other travel related expenses shall be reimbursed at their cost. Any single
out-of-pocket expense item in excess of $__________ shall be pre-approved by the
Company in advance of expenditure. On a monthly basis, the Company will reimburse
the expenses within ten (10) days after receipt of an invoice,
3. Term
The term of this Agreement shall commence on _____________ (date) and shall
terminate on _____________ (date) . If Consultant has provided construction management or
other services prior to the termination of this Agreement, the fees and expenses referred to
above will be due and payable upon the completion of construction. Any of the Company's
obligations that have accrued prior to the termination of this Agreement shall survive the
termination of this Agreement.
4. Claims
Consultant and the Owner will indemnify, defend and save harmless the other from and
against all Claims , as that term is defined, based upon the indemnifying party's negligence or
intentional misconduct. As used herein, Claims shall mean all claims, suits, proceedings,
actions, demands, causes of action, responsibility, liability, judgments, executions, damages,
loss and expense (including attorney's fees). Company will indemnify, defend and save
Consultant harmless from and against all Claims, as that term is defined, based upon any
contractor or subcontractor’s negligence or intentional misconduct.
5. Claims
As used herein, Claims shall mean all claims, suits, proceedings, actions, demands,
causes of action, responsibility, liability, judgments, executions, damages, loss and expense
(including attorney's fees).
6. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. If any provision of this Agreement is held to be invalid, the
parties agree that the remaining provisions shall be deemed to be in full force and effect as if
they had been executed by both parties subsequent to the expungement of the invalid provision.
7. No Waiver
The failure of either party to this Agreement to insist upon the performance of any of the
terms and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as subsequently waiving any such terms
and conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
8. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of ______________.
9. Notices
Any notice provided for or concerning this Agreement shall be in writing and shall be
deemed sufficiently given when sent by certified or registered mail if sent to the respective
address of each party as set forth at the beginning of this Agreement.
10. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party
in the action shall pay to the successful party, in addition to all the sums that either party may be
called on to pay, a reasonable sum for the successful party's attorney fees.
11. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding arbitration
of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one
arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration
Association then in force and effect.
12. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement.
13. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if placed in writing and signed by each
party or an authorized representative of each party.
14. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may not be
assigned or transferred to any other person, firm, corporation, or other entity without the prior,
express, and written consent of the other party.
15. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
__________________________ ___________________________
(Name of Management Consultant) (Name of Company)
By:______________________________ By:_____________________________
_______________________ _________________________
(P rinted Name & Office in Corporation) (P rinted Name & Office in Corporation
_______________________ __________________________
(Signature of Officer) (Signature of Officer)
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