Construction Management Contract Template for Canada

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Key Requirements PROMPT example:

Construction Management Contract

"I need a Construction Management Contract for a large-scale hospital development project in Ontario, with construction scheduled to begin in March 2025, including specific provisions for medical facility requirements and phased completion of different wings."

Document background
The Construction Management Contract is a specialized agreement used in the Canadian construction industry when an owner requires professional management services for their construction project. This contract type is particularly suitable for complex projects where the owner wants to maintain greater control while benefiting from professional construction expertise. The Construction Management Contract establishes the construction manager's role as the owner's agent or consultant, detailing their responsibilities in pre-construction planning, project coordination, schedule management, cost control, and trade contractor oversight. It addresses specific Canadian regulatory requirements, including provincial construction lien acts, prompt payment legislation, and health and safety regulations. The document is structured to provide flexibility in project delivery while ensuring compliance with Canadian construction law and industry standards. It's commonly used in both public and private sector projects where sophisticated project management is required.
Suggested Sections

1. Parties: Identification of the Owner and Construction Manager, including their legal status and contact details

2. Background: Context of the project and purpose of appointing the Construction Manager

3. Definitions: Key terms used throughout the agreement, including project-specific terminology

4. Scope of Services: Detailed description of the Construction Manager's pre-construction and construction phase services

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

6. Construction Manager's Obligations: Specific duties including project management, coordination, cost control, and reporting

7. Owner's Obligations: Owner's responsibilities including provision of information, approvals, and site access

8. Payment Terms: Fee structure, payment schedule, and procedures compliant with provincial prompt payment legislation

9. Changes and Variations: Process for handling changes to scope, schedule, or budget

10. Health and Safety: Safety obligations and compliance with Canadian health and safety regulations

11. Insurance and Indemnity: Required insurance coverage and indemnification provisions

12. Termination: Grounds and procedures for contract termination

13. Dispute Resolution: Process for resolving disputes, including reference to Canadian arbitration procedures

14. General Provisions: Standard contract clauses including governing law, notices, and entire agreement

Optional Sections

1. Value Engineering: Include when the Construction Manager is specifically required to provide cost optimization services

2. Sustainable Construction: Include when project has specific environmental or LEED certification requirements

3. Building Information Modeling: Include when BIM is required for project delivery

4. Multiple Prime Contractors: Include when project involves coordination of several prime contractors

5. Financing Requirements: Include when project involves specific financing conditions or lender requirements

6. Indigenous Peoples Consultation: Include when project is on or affects Indigenous lands or requires Indigenous consultation

7. Heritage Requirements: Include when project involves heritage buildings or sites

Suggested Schedules

1. Schedule A - Project Description: Detailed description of the project scope and specifications

2. Schedule B - Construction Manager's Fee: Detailed breakdown of fees, rates, and reimbursable expenses

3. Schedule C - Project Schedule: Detailed project timeline including milestones and critical path

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

5. Schedule E - Required Insurance: Specific insurance requirements and coverage limits

6. Schedule F - Form of Trade Contractor Agreement: Standard form agreement for use with trade contractors

7. Schedule G - Health and Safety Requirements: Detailed safety procedures and requirements

8. Schedule H - Quality Management Plan: Quality control and assurance procedures

9. Schedule I - Required Reports: List and format of required project reports

10. Appendix 1 - Site Plan: Drawings showing project site and boundaries

11. Appendix 2 - Permits and Approvals: List of required permits and approval status

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Residential Development

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Institutions

Retail Development

Hospitality

Government Buildings

Mixed-Use Development

Sports Facilities

Cultural Facilities

Relevant Teams

Legal

Operations

Construction

Commercial

Procurement

Risk Management

Finance

Project Management

Development

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Legal Counsel

Risk Manager

Commercial Director

Development Manager

Project Manager

Quantity Surveyor

Chief Operating Officer

Operations Director

Procurement Manager

Financial Controller

Site Superintendent

Construction 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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