The Development Management Agreement serves as a critical document in real estate development projects across the United States. It is typically used when property owners or developers require specialized expertise to oversee complex development projects but wish to maintain ultimate control over their investments. The agreement defines the development manager's role in coordinating various aspects of the project, including design, construction, budgeting, and scheduling, while establishing clear lines of authority and decision-making processes. This document includes detailed provisions for compensation, risk allocation, and performance standards, ensuring alignment between the parties' interests and project objectives. The agreement must comply with federal, state, and local regulations governing real estate development and construction management.
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1. Parties: Identification of the property owner/developer and the development manager
2. Background: Context of the development project and the purpose of engaging a development manager
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of development management services to be provided
5. Term and Termination: Duration of the agreement and conditions for termination
6. Compensation: Fee structure, payment terms, and reimbursable expenses
7. Responsibilities and Authority: Specific duties and limitations of the development manager's authority
8. Standard of Care: Professional standards and quality expectations
9. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
1. Project Financing: Terms related to securing and managing project funding when development manager has responsibilities related to financing
2. Sustainability Requirements: Green building and environmental standards for projects with specific environmental goals or certifications
3. Marketing and Leasing: Responsibilities related to property marketing and tenant acquisition when development manager's scope includes leasing responsibilities
4. Value Engineering: Processes for cost optimization and analysis when cost management is a key concern
1. Schedule A - Project Description: Detailed description of the development project
2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment structure
3. Schedule C - Project Timeline: Key milestones and project schedule
4. Schedule D - Required Insurance: Specific insurance requirements and coverage limits
5. Schedule E - Key Personnel: List of key team members and their roles
6. Schedule F - Reporting Requirements: Format and frequency of required reports
7. Schedule G - Project Budget: Detailed project budget and cost estimates
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