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Construction Management Contract for India

Construction Management Contract Template for India

A Construction Management Contract under Indian law is a comprehensive agreement that establishes the relationship between a property owner/developer and a construction manager who oversees and manages the construction project. The document is governed by Indian contract law, particularly the Indian Contract Act, 1872, and must comply with various construction-specific regulations including RERA 2016. It details the construction manager's scope of services, responsibilities, standard of care, fee structure, and project management obligations while ensuring compliance with local building codes, labor laws, and environmental regulations. The contract includes provisions for project scheduling, quality control, safety management, and dispute resolution mechanisms specific to the Indian construction industry.

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Construction Management Contract

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What is a Construction Management Contract?

The Construction Management Contract is a specialized agreement used in the Indian construction industry when a project owner requires professional construction management services. This contract type is particularly relevant for complex construction projects where specialized expertise is needed to manage multiple contractors, coordinate construction activities, and ensure project delivery within specified parameters. The document, governed by Indian law, establishes the construction manager's role as the owner's representative, detailing their authority, responsibilities, and scope of services. It includes crucial elements such as pre-construction planning, procurement management, construction supervision, quality control, and project closeout procedures. The contract must align with various Indian regulations including RERA 2016, labor laws, and environmental requirements, while also incorporating industry best practices for construction management.

What sections should be included in a Construction Management Contract?

1. Parties: Identification of the Owner/Employer and the Construction Manager, including their legal status and registered addresses

2. Background: Context of the project, brief description of the construction works, and the purpose of engaging a construction manager

3. Definitions and Interpretation: Definitions of key terms used in the contract and rules of interpretation

4. Scope of Services: Detailed description of construction management services, including pre-construction, construction, and post-construction phases

5. Construction Manager's Obligations: Specific duties, responsibilities, and standard of care required from the Construction Manager

6. Owner's Obligations: Responsibilities and obligations of the Owner, including provision of information and approvals

7. Project Schedule: Timeline for the project, key milestones, and completion dates

8. Fee Structure and Payment Terms: Construction management fees, payment schedule, and invoicing procedures

9. Project Team and Personnel: Key personnel requirements, staffing obligations, and replacement procedures

10. Subcontracting and Procurement: Procedures for engaging and managing subcontractors and procurement processes

11. Quality Control and Supervision: Quality management requirements and supervision responsibilities

12. Health, Safety and Environmental Requirements: HSE obligations and compliance requirements

13. Insurance and Indemnity: Insurance requirements and indemnification provisions

14. Changes and Variations: Procedures for handling changes to scope, schedule, or fees

15. Force Majeure: Provisions for unforeseen circumstances and their impact on obligations

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

18. Governing Law and Jurisdiction: Applicable law and jurisdiction for the contract

What sections are optional to include in a Construction Management Contract?

1. Performance Security: Required when the owner wants financial security for performance, specifying bank guarantee or other security requirements

2. Technology and BIM Requirements: Include when the project involves specific technology or Building Information Modeling requirements

3. Sustainability Requirements: Include when the project has specific green building or sustainability objectives

4. Multiple Phase Implementation: Required when the project is divided into distinct phases with different requirements

5. International Standards Compliance: Include when the project must comply with specific international construction or management standards

6. Intellectual Property Rights: Include when the project involves design elements or proprietary methods

7. Local Content Requirements: Include when there are specific requirements for local resource utilization

8. Currency and Exchange Rate Provisions: Required for projects involving international payments or multiple currencies

What schedules should be included in a Construction Management Contract?

1. Schedule A - Scope of Services: Detailed breakdown of construction management services and deliverables

2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and reimbursable expenses

3. Schedule C - Project Schedule: Detailed project timeline, milestones, and completion dates

4. Schedule D - Key Personnel: List of key personnel with their roles, responsibilities, and minimum qualifications

5. Schedule E - Required Insurance: Detailed insurance requirements including types and coverage amounts

6. Schedule F - Project Specific Requirements: Technical specifications and project-specific requirements

7. Schedule G - Forms and Templates: Standard forms for reports, certificates, and other project documents

8. Schedule H - HSE Requirements: Detailed health, safety, and environmental requirements

9. Appendix 1 - Power of Attorney: Authorization documents for signatories

10. Appendix 2 - Performance Security Format: Format for bank guarantee or other security instruments

11. Appendix 3 - Site Details: Details of the construction site including surveys and existing conditions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions























































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Relevant Industries

Real Estate Development

Commercial Construction

Industrial Construction

Infrastructure Development

Residential Construction

Healthcare Construction

Educational Facilities

Retail Development

Hospitality Construction

Manufacturing Facilities

Technology Parks

Mixed-Use Development

Public Works

Transportation Infrastructure

Relevant Teams

Legal

Operations

Project Management

Construction

Commercial

Procurement

Health Safety Environment

Quality Assurance

Risk and Compliance

Finance

Technical Services

Contract Administration

Business Development

Relevant Roles

Project Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Chief Operating Officer

Director of Operations

Site Supervisor

Procurement Manager

Quality Control Manager

HSE Manager

Commercial Manager

Cost Controller

Planning Engineer

Technical Director

Chief Executive Officer

Risk Manager

Compliance Officer

Industries












Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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