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Construction Management Agreement

Construction Management Agreement Template for South Africa

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Key Requirements PROMPT example:

Construction Management Agreement

"I need a Construction Management Agreement for a large-scale retail development in Cape Town, with specific provisions for phased delivery and multiple contractors, incorporating BEE requirements and local community engagement obligations."

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Document background
The Construction Management Agreement is a crucial document used when a Client requires professional construction management services for their construction project in South Africa. This agreement establishes the legal and operational framework for the Construction Manager's appointment, defining their authority to act on behalf of the Client in managing contractors, coordinating construction activities, and ensuring project delivery. The document incorporates requirements from South African legislation, including the Construction Industry Development Board Act, Occupational Health and Safety Act, and relevant building regulations. It's particularly important for complex projects requiring professional oversight, coordination of multiple contractors, and strict compliance with local regulations. The agreement covers essential aspects such as scope of services, payment terms, project control procedures, and risk allocation, while addressing specific South African requirements regarding safety, labor practices, and Black Economic Empowerment considerations.
Suggested Sections

1. Parties: Identification of the Client and Construction Manager, including their registered addresses and company details

2. Background: Context of the agreement, including project overview and appointment basis

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and interpretation rules

4. Appointment and Duration: Formal appointment of the Construction Manager and contract term

5. Construction Manager's Obligations: Detailed scope of services, including pre-construction, construction, and post-construction phases

6. Client's Obligations: Client's responsibilities including provision of information, approvals, and access

7. Project Control and Reporting: Management procedures, reporting requirements, and project control mechanisms

8. Payment Terms: Fee structure, payment schedule, and invoicing procedures

9. Personnel and Resources: Key personnel requirements, staffing obligations, and resource commitments

10. Health and Safety: Compliance with OHS Act and Construction Regulations requirements

11. Insurance and Liability: Required insurance coverage and liability limitations

12. Intellectual Property: Ownership and usage rights of project documentation and designs

13. Confidentiality: Protection of confidential information and trade secrets

14. Termination: Grounds for termination and consequences

15. Dispute Resolution: Dispute resolution procedures including mediation and arbitration

16. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement

Optional Sections

1. Environmental Management: Required when project has significant environmental impacts or requires environmental permits

2. Community Engagement: Needed for projects requiring community liaison or local content requirements

3. BEE Requirements: Required for projects subject to Black Economic Empowerment requirements

4. Value Engineering: Optional section for projects where cost optimization is a key requirement

5. Quality Management System: Required for complex projects needing specific quality management procedures

6. Multiple Site Provisions: Required when the project involves multiple construction sites

7. Force Majeure: Optional detailed provisions for force majeure events

8. Step-in Rights: Required for projects where the client may need to take over management

9. Penalties and Incentives: Optional performance-based penalties or incentives structure

Suggested Schedules

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

2. Schedule 2 - Fee Schedule: Detailed fee calculation, rates, and payment terms

3. Schedule 3 - Project Program: Project timeline, milestones, and key dates

4. Schedule 4 - Key Personnel: Details of key team members and their roles

5. Schedule 5 - Client's Requirements: Detailed client specifications and requirements

6. Schedule 6 - Project Specific Requirements: Special requirements unique to the project

7. Schedule 7 - Forms and Procedures: Standard forms for applications, certificates, and reports

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage limits

9. Appendix A - Site Information: Site details, access requirements, and existing conditions

10. Appendix B - Statutory Requirements: Applicable laws, regulations, and compliance requirements

11. Appendix C - Health and Safety Specifications: Detailed health and safety requirements and procedures

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions








































































Clauses






































Relevant Industries

Commercial Real Estate

Residential Development

Industrial Construction

Infrastructure Development

Mining

Healthcare Facilities

Educational Institutions

Retail Development

Hospitality

Government Infrastructure

Transportation

Energy and Utilities

Manufacturing Facilities

Sports and Recreation

Agricultural Infrastructure

Relevant Teams

Legal

Operations

Commercial

Procurement

Risk and Compliance

Construction

Project Management

Finance

Health and Safety

Quality Assurance

Technical Services

Contract Administration

Business Development

Relevant Roles

Construction Manager

Project Director

Commercial Director

Contract Manager

Legal Counsel

Risk Manager

Procurement Manager

Operations Director

Development Manager

Chief Executive Officer

Technical Director

Financial Director

Health and Safety Manager

Quality Assurance Manager

Site Manager

Project Controls Manager

Cost Manager

Principal Agent

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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