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Project Management Design Fee Agreement

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Project Management Design Fee Agreement

Project Identification

Project Title:

Contact (email / phone):

Recitals

This Agreement is entered into between Client Name: and Service Provider: for the provision of design and project management services as described below.

Scope of Work

The Service Provider shall perform the following services, including preparation of design documentation, coordination of consultants, procurement support, and project management activities necessary for completion of the Project.

Deliverables & Acceptance Criteria

The Service Provider will deliver the following items. Each deliverable shall be subject to Client acceptance based on the stated acceptance criteria.

Timeline & Milestones

Project Commencement Date:    Project Substantial Completion Date:

Milestone 1 Target Date:

Milestone 2 Target Date:

Fee Structure & Payment

Total Fixed Fee (Design & PM): $

Change Orders

Any change to Scope of Work, schedule, or fee shall be executed via a written change order signed by both parties. Change orders shall describe the change, the adjustment to fee, and the schedule impact.

Confidentiality

Each party shall keep confidential all proprietary information disclosed by the other party in connection with the Project and shall not use such information except to perform its obligations under this Agreement. Confidential information does not include information that is or becomes publicly available without breach of this Agreement, independently developed without reference to the other party’s confidential information, or required to be disclosed by law.

Termination

Either party may terminate this Agreement for material breach by the other party if the breach is not cured within the notice period stated below. Upon termination the Service Provider shall be entitled to payment for work performed to the date of termination, including reimbursable expenses.

Cure / Notice Period (days):

Indemnification & Limitation of Liability

Each party shall indemnify the other for claims arising from its negligent acts or omissions in the performance of this Agreement. The Service Provider’s aggregate liability for claims arising out of this Agreement shall be limited to direct damages not to exceed the total fees paid under this Agreement. Neither party shall be liable for consequential, incidental, or punitive damages except for liability arising from willful misconduct or gross negligence.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

Representations & Authorization

Each party represents that it has authority to enter into this Agreement, that the individual signing below is authorized to bind the signing party, and that performance under this Agreement will not violate any other agreement or obligation to which the signing party is subject.

By signing below, the parties agree to the terms set forth in this Project Management Design Fee Agreement.

Client Name:

By:

Date:

Service Provider Name:

By:

Date:

Enter text✕

What the Project Management Design Fee Agreement Is

A Project Management Design Fee Agreement is a written contract that sets the scope, schedule, payment terms, and responsibilities for project management and design services on a defined project. It allocates fees, milestones, deliverables, change-order processes, and acceptance criteria between a client and a design or project management firm, and establishes remedies for nonperformance. The agreement also addresses intellectual property, confidentiality, insurance, and dispute resolution to reduce uncertainty during design and pre-construction phases.

Why this agreement matters for project outcomes

A clear design fee agreement reduces disputes, sets payment expectations, and protects both parties by documenting deliverables, timelines, and change-order rules. It creates an auditable record that supports invoicing, approvals, and legal enforceability under contract law and applicable e-signature statutes.

Why this agreement matters for project outcomes

Who typically prepares and signs this agreement

Common users include design firms, project managers, general contractors, and clients commissioning design services.

  • Design firms and architects preparing fee proposals and scope documents for clients.
  • Project managers coordinating schedules, deliverables, and subcontractor responsibilities across phases.
  • Owners or developers who need documented payment schedules and acceptance criteria.

The agreement is appropriate for both fixed-fee and time-and-materials engagements and for projects from small renovations to large capital programs.

Core components to include in a professional agreement

A complete agreement clearly defines scope, fee structure, milestones, roles, change control, and legal provisions so parties have a single reference for performance and payment.

Scope

Detailed description of services, deliverables, excluded items, and acceptance criteria to prevent scope creep and disputes.

Fees

Method of compensation (fixed, hourly, or percentage), fee schedule, deposit requirements, invoicing cadence, and late-payment terms.

Milestones

Key project dates, design submission deadlines, review periods, and conditions for payment tied to milestone acceptance.

Change Orders

Procedure for requesting, pricing, approving, and documenting changes to scope or schedule, including authorized signers.

Liability

Insurance requirements, limitation of liability, indemnities, and responsibility allocation for errors or omissions.

Termination

Grounds for termination, notice requirements, final accounting, and rights to retain completed work.

Step-by-step: completing the agreement

Follow these sequential steps to prepare, review, and execute a Project Management Design Fee Agreement with clarity and legal soundness.

  • 01
    Draft Scope: Describe deliverables and exclusions clearly.
  • 02
    Set Fees: Specify pricing, schedule, and invoicing.
  • 03
    Review Terms: Confirm liability, insurance, and termination clauses.
  • 04
    Execute: All authorized parties sign and date document.

Configuring an online signing workflow

Set up an electronic workflow that preserves audit trails, enforces signer order, and attaches exhibits or sketches to the agreement.

Field Configuration
Signer Order Sequential | Client then PM
Authentication Email link | SMS code optional
Attachments Embed exhibits | PDF appendices
Audit Trail Enable timestamps | IP and event log

Where to send and how execution flows

Understand routing: originator prepares, parties review, authorized signers execute, and copies are distributed for records and invoicing.

  • Prepare: Upload final draft with exhibits attached.
  • Route: Send to reviewers then authorized signers in order.
  • Sign: Signers authenticate and apply signatures.
  • Store: Distribute completed copies and save to records.

Digital signing and technical considerations

Choose an e-signature platform that provides secure storage, audit trails, and optional advanced authentication.

  • File formats: PDF, DOCX supported
  • Integrations: Works with NetSuite and Google Workspace
  • Security: TLS and AES encryption

Preserve the signed file in a secure repository with access controls and versioning so executed agreements remain retrievable for audits and claims.

Key dates and deadlines to include

Document and calendar all critical dates so payments and submissions align with contractual obligations and project sequencing.

Agreement Effective Date:

Date the contract takes effect and begins milestone timing.

Deposit Due Date:

Date for initial retainer or deposit payment.

Milestone Delivery Dates:

Dates for submissions and review response windows.

Invoice Due Dates:

Net payment terms and late fee trigger dates.

Change Order Response:

Timeframe for approving or rejecting change orders.

Project lifecycle milestones and acceptance stages

Track milestones from contract signing through final acceptance to ensure payments and handoffs occur on schedule.

01

Contract Execution

Document signed and deposit invoiced to begin work.

02

Concept Submission

Initial design submitted for review and client feedback.

03

Detailed Design Delivery

Deliver construction-ready drawings and specifications.

04

Final Acceptance

Client approves deliverables and final payment is made.

Common preparation mistakes to avoid

  • Vague scope language that omits excluded tasks, creating billable disputes and extended negotiation periods.
  • Missing or inconsistent signer authority details that delay execution or invalidate change-order approvals.
  • Unclear payment milestones that lead to late payments, disputes, and cash-flow interruptions for the design firm.
  • Failure to attach key exhibits (schedules, specs, or reference plans), which complicates acceptance and warranty obligations.

Consequences of an incomplete or incorrect agreement

Payment Delays: Lost cash flow
Scope Disputes: Costly renegotiation
Liability Exposure: Higher claims risk
Invalid Signatures: Enforcement problems
Regulatory Risk: Industry noncompliance
Termination Costs: Early-close damages

eSignature vendor comparison for agreement execution

Compare common vendor criteria for signing and managing Project Management Design Fee Agreements; signNow is listed first per platform comparison conventions.

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 vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes 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 No cap No cap No cap

Real-world examples of use

Two brief examples show how organizations use electronic agreements and fee schedules to accelerate project starts and payments.

Optica Ventures

A mid-sized developer standardized fee agreements for tenant improvements to reduce turnaround time.

  • This improved client clarity across multiple projects.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers," said Brian Fitzgibbons, COO.

Martin Properties

A small property manager moved to electronic fee agreements for fast leasehold improvements.

  • Signatures arrived from remote stakeholders within 24 hours.
  • Tim Martin, Founder, noted: "I can process and execute all of these documents online with 100% compliance and built-in security."

Frequently asked questions and troubleshooting

Answers to common questions about enforceability, signing, notarization, amendments, and storage for a Project Management Design Fee Agreement.


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