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Construction Management Contract

Construction Management Contract Template for South Africa

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Key Requirements PROMPT example:

Construction Management Contract

"I need a Construction Management Contract for a large-scale shopping mall development in Cape Town, starting March 2025, with specific provisions for multiple subcontractor coordination and B-BBEE compliance requirements."

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Document background
The Construction Management Contract is a specialized agreement used in the South African construction industry when a Client requires professional construction management services for complex building or infrastructure projects. This contract type is particularly relevant for projects where sophisticated project management, cost control, and coordination of multiple contractors are essential. 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 is designed to clearly define the Construction Manager's role, authority, responsibilities, and remuneration structure while ensuring compliance with local regulatory requirements and industry best practices. The agreement is typically used for medium to large-scale projects where the Client seeks professional expertise to manage construction processes, coordinate various stakeholders, and optimize project delivery.
Suggested Sections

1. Parties: Identification and details of the Client and Construction Manager

2. Background: Context of the agreement and brief project overview

3. Definitions and Interpretation: Defined terms used throughout the agreement and interpretation rules

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

5. Construction Manager's Obligations: Core services and duties to be performed by the Construction Manager

6. Client's Obligations: Responsibilities and duties of the Client

7. Project Management: Management procedures, reporting requirements, and coordination responsibilities

8. Health and Safety: Safety obligations and compliance with OHS Act requirements

9. Quality Control: Quality management procedures and standards

10. Cost Management: Budget control, cost reporting, and financial management procedures

11. Time Management: Schedule management, programming, and delay management

12. Payment Terms: Fee structure, payment procedures, and invoicing requirements

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

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

15. Confidentiality: Protection of confidential information and trade secrets

16. Dispute Resolution: Procedures for handling disputes and conflict resolution

17. Termination: Grounds and procedures for contract termination

18. General Provisions: Standard legal clauses including notices, governing law, and entire agreement

Optional Sections

1. B-BBEE Compliance: Section detailing B-BBEE requirements and compliance measures, included for projects above certain value thresholds

2. Environmental Management: Environmental protection measures and compliance, included for projects with significant environmental impact

3. Value Engineering: Procedures for cost optimization and value improvement, included for complex projects

4. Building Information Modeling: BIM requirements and protocols, included when BIM is used on the project

5. Risk Management: Detailed risk assessment and management procedures, included for high-risk projects

6. Stakeholder Management: Procedures for managing multiple stakeholders, included for projects with complex stakeholder relationships

7. Skills Development: Training and development requirements, included when specific skills development obligations exist

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of Construction Manager's services and deliverables

2. Schedule 2 - Fee Schedule: Detailed fee breakdown, rates, and payment milestones

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

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

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

6. Schedule 6 - Project Sites: Details of construction sites and access arrangements

7. Schedule 7 - Quality Management Plan: Quality standards and control procedures

8. Schedule 8 - Health and Safety Requirements: Specific health and safety procedures and requirements

9. Schedule 9 - Required Insurance: Details of required insurance coverage

10. Appendix A - Standard Forms: Templates for reports, certificates, and other standard documents

11. Appendix B - Communication Protocols: Procedures for project communications and reporting

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 Construction

Residential Development

Industrial Construction

Infrastructure Development

Mining Infrastructure

Healthcare Facilities

Educational Facilities

Retail Development

Public Sector Construction

Energy Infrastructure

Relevant Teams

Legal

Operations

Construction

Commercial

Procurement

Risk and Compliance

Project Controls

Health and Safety

Quality Assurance

Technical Services

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Manager

Commercial Manager

Legal Counsel

Risk Manager

Procurement Manager

Chief Operating Officer

Development Director

Project Controls Manager

Cost Manager

Site Manager

Health and Safety Manager

Quality Assurance Manager

Technical Director

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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