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The Project Management Agreement (Construction) is a crucial document used in the South African construction industry to formalize the appointment of project management professionals or firms. It is essential for projects requiring professional project management services in compliance with South African construction laws, including the Construction Industry Development Board Act and related regulations. The agreement typically includes comprehensive details about project scope, deliverables, professional services, fee structures, and risk allocation. It is particularly important for ensuring compliance with local construction regulations, health and safety requirements, and professional standards while providing clear guidelines for project execution and management. This document is commonly used in both private and public sector construction projects, ranging from commercial developments to infrastructure projects, and must align with South African legal requirements and industry best practices.

1. Parties: Identification and details of the Client and the Project Manager, including registration numbers and physical addresses

2. Background: Context of the agreement, brief project overview, and purpose of appointing the Project Manager

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

4. Appointment and Duration: Formal appointment of the Project Manager, project term, and conditions for extension

5. Project Manager's Scope of Services: Detailed description of core services, deliverables, and project management responsibilities

6. Client's Obligations: responsibilities and obligations of the Client, including provision of information and timely decisions

7. Project Parameters: Key project constraints including time, budget, quality requirements, and project objectives

8. Fees and Payment Terms: Project management fees, payment schedule, expenses, and invoicing procedures

9. Professional Team: Structure and management of the professional team, including appointment and coordination responsibilities

10. Reporting and Communication: Reporting requirements, meeting procedures, and communication protocols

11. Risk Management: Risk allocation, insurance requirements, and risk management procedures

12. Variations and Changes: Procedures for handling changes to scope, timeline, or budget

13. Quality Management: Quality control procedures, standards, and compliance requirements

14. Health and Safety: Health and safety obligations and compliance with relevant legislation

15. Intellectual Property: Ownership and usage rights of project documentation and deliverables

16. Confidentiality: Protection and handling of confidential information

17. Limitation of Liability: Extent and limitations of the Project Manager's liability

18. Termination: Grounds and procedures for termination, including consequences and obligations

19. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

20. General Provisions: Standard legal provisions including notices, governing law, and entire agreement