The Construction Management Contract is a specialized agreement used in the Australian construction industry when a Principal/Owner requires professional expertise to manage complex construction projects. This document is particularly relevant for large-scale or sophisticated projects where the Principal seeks to engage a Construction Manager to provide professional management services rather than traditional general contracting services. The contract addresses the unique aspects of construction management delivery, including coordination of multiple trade contractors, project scheduling, cost control, quality management, and regulatory compliance. It incorporates requirements from relevant Australian legislation, including security of payment laws, work health and safety regulations, and building codes. The document is structured to clearly define the Construction Manager's role, responsibilities, and authority, while establishing mechanisms for project administration, risk management, and dispute resolution.
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1. Parties: Identifies and provides details of the contracting parties - typically the Principal/Owner and the Construction Manager
2. Background: Sets out the context of the agreement and the project overview
3. Definitions and Interpretation: Defines key terms used throughout the contract and establishes interpretation principles
4. Appointment and Duration: Establishes the formal appointment of the Construction Manager and contract term
5. Construction Manager's Obligations: Details core services and responsibilities including project management, coordination, and reporting
6. Principal's Obligations: Outlines the Principal's responsibilities including provision of information and approvals
7. Project Administration: Covers management procedures, meetings, reporting requirements, and documentation
8. Time and Programming: Addresses project scheduling, milestones, and time management procedures
9. Payment and Financial Matters: Details fees, payment procedures, and financial reporting requirements
10. Variations: Procedures for changes to scope, fees, or services
11. Insurance and Liability: Specifies required insurances and liability limitations
12. Termination: Sets out circumstances and procedures for contract termination
13. Dispute Resolution: Establishes procedures for resolving disputes
14. General Provisions: Includes standard contractual provisions like notices, governing law, and assignment
1. Trade Package Procurement: Used when the Construction Manager is responsible for procurement of trade contractors
2. Design Management: Included when the Construction Manager has design review or management responsibilities
3. Quality Management: Added when specific quality management systems are required
4. Environmental Management: Required for projects with significant environmental considerations
5. Community and Stakeholder Management: Included for projects with significant community impact
6. Building Information Modeling (BIM): Added when BIM is required for the project
7. Innovation and Value Engineering: Included when specific innovation or cost optimization requirements exist
8. Security Requirements: Added for projects requiring specific security measures or clearances
1. Schedule 1 - Services Schedule: Detailed scope of Construction Management services
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Project Brief: Detailed description of the project requirements and specifications
4. Schedule 4 - Program: Project timeline, milestones, and key dates
5. Schedule 5 - Site Details: Information about the project site and conditions
6. Schedule 6 - Key Personnel: Details of key team members and their roles
7. Schedule 7 - Forms of Certificates: Standard forms for various project certificates
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and requirements
9. Appendix A - Project Management Procedures: Detailed procedures for project administration
10. Appendix B - Quality Management Plan: Quality assurance and control procedures
11. Appendix C - Reporting Templates: Standard forms for project reporting
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure
Healthcare
Education
Retail
Hospitality
Mining
Energy
Transport
Public Sector
Mixed-Use Development
Relevant Teams
Legal
Commercial
Operations
Construction
Project Management
Risk and Compliance
Procurement
Finance
Technical Services
Business Development
Executive Leadership
Relevant Roles
Construction Manager
Project Director
Commercial Manager
Contract Administrator
Project Manager
Legal Counsel
Risk Manager
Procurement Manager
Quality Manager
Site Manager
Development Manager
Operations Director
Chief Executive Officer
Financial Controller
Technical Director
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