The main advantages of a construction management contract are the main advantages: if time, price transparency, flexibility and control are more important to you than price security and a single point of responsibility, a construction management approach is certainly worth thinking about. If you want to learn more about the different types of contract models in the construction industry, you can find out more here. The construction management agreement (or approved version) is used to award contracts with a licensed architect, registered engineer or general contractor for some or all services related to the management of UC construction contracts. The order is not used when the tradesman performs one of the actual design or design work of the project. 4. In the case of a solvency event involving the owner, the contractor is less exposed (compared to a contractor). Although a site manager has contractual obligations to act in the best interests of the client, and while reputational issues also play a role, these motivations are often not as powerful as the financial rewards (and risks) generated under a flat-rate scenario. A construction management contract is a kind of early Contractor Involvement (or “ECI”) agreement and differs in many respects from a conventional flat-rate model. This article explains the basics. Would you like to start with a new manager for your construction project? A construction management contract is a contract drawn up and signed by a site manager and the landowner. It allows you to define roles and responsibilities, deadlines, salaries and project details. We help you establish a construction management agreement that documents your goals and expectations.
Unlike the lump sum award, the contractor is generally not responsible for the contractors` actions and omissions (. B for example, defects or delays). This is because the role of the site manager is limited to the management and control of contractors instead of taking the risk of their non-performance. Greg is a principal at Turtons and is a business lawyer who works primarily in the construction and technology sector for a number of clients.