Development Management Agreement for Switzerland

Development Management Agreement Template for Switzerland

A Development Management Agreement under Swiss law establishes the contractual relationship between a property owner/developer and a development manager for the oversight and management of a development project. The agreement, governed by Swiss federal and cantonal laws, particularly the Swiss Code of Obligations (OR) and cantonal construction regulations, outlines the scope of services, responsibilities, fee structure, and project deliverables. It incorporates specific Swiss regulatory requirements, including compliance with SIA norms, environmental regulations, and local building codes, while addressing risk allocation, professional liability, and project milestone requirements.

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What is a Development Management Agreement?

The Development Management Agreement is essential for property development projects in Switzerland where professional project oversight is required. It is typically used when a property owner or investor needs specialized expertise to manage complex development projects, ensuring compliance with Swiss federal and cantonal regulations. The agreement details the development manager's scope of services, including project planning, coordination with authorities, budget management, contractor supervision, and reporting obligations. It addresses specific Swiss legal requirements such as SIA norms compliance, cantonal construction permits, and environmental regulations. The document includes provisions for fee structures, often linking payments to project milestones, and incorporates risk management strategies appropriate for the Swiss market. This agreement type is particularly important given Switzerland's complex regulatory environment and high construction standards.

What sections should be included in a Development Management Agreement?

1. Parties: Identification of the property owner/client and the development manager, including full legal details

2. Background: Context of the development project, property details, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including Project, Services, Development Program, and Applicable Laws

4. Appointment and Scope of Services: Formal appointment of the development manager and detailed scope of services

5. Development Manager's Obligations: Core responsibilities, including project management, coordination, reporting, and compliance duties

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

7. Project Timeline: Key milestones, phases, and completion dates for the development project

8. Fees and Payment Terms: Fee structure, payment schedule, expenses, and VAT considerations

9. Standard of Care: Required professional standard and compliance with Swiss regulations and SIA norms

10. Regulatory Compliance: Obligations regarding permits, approvals, and compliance with Swiss construction laws

11. Insurance and Liability: Insurance requirements and limitation of liability provisions

12. Intellectual Property: Ownership and usage rights of project documents and materials

13. Term and Termination: Duration, renewal, and termination provisions

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Development Management Agreement?

1. Environmental Compliance: Additional section when project requires specific environmental impact assessments or measures

2. Sustainable Development: Optional section for projects with specific sustainability goals or certifications

3. Value Engineering: Section for projects requiring specific cost optimization processes

4. Dispute Resolution: Detailed ADR procedures if parties prefer specific resolution mechanisms

5. Staff and Resources: Detailed provisions about key personnel when specific expertise is critical

6. Risk Management: Additional risk management provisions for complex projects

7. Quality Assurance: Specific quality management requirements for high-end developments

8. Marketing and Leasing: When development manager's scope includes commercialization services

What schedules should be included in a Development Management Agreement?

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

2. Schedule 2 - Fee Schedule: Detailed fee calculation, milestone payments, and reimbursable expenses

3. Schedule 3 - Project Program: Detailed project timeline, milestones, and deliverables

4. Schedule 4 - Property Details: Legal description and details of the development property

5. Schedule 5 - Key Personnel: List of key team members and their roles

6. Schedule 6 - Required Insurances: Detailed insurance requirements and coverage levels

7. Schedule 7 - Reporting Requirements: Format and frequency of project reports

8. Schedule 8 - Client's Requirements: Detailed technical and commercial requirements

9. Appendix A - Form of Monthly Report: Template for regular project reporting

10. Appendix B - Power of Attorney: If required for specific administrative or regulatory procedures

11. Appendix C - Project Budget: Detailed cost estimates and budget constraints

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Commercial Property

Residential Property

Infrastructure Development

Urban Planning

Architecture

Investment Management

Facilities Management

Relevant Teams

Legal

Real Estate

Development

Construction

Project Management

Finance

Risk Management

Operations

Commercial

Technical Services

Compliance

Procurement

Asset Management

Relevant Roles

Development Manager

Project Director

Construction Manager

Real Estate Manager

Investment Manager

Property Developer

Asset Manager

Technical Director

Development Director

Construction Director

Legal Counsel

Contract Manager

Risk Manager

Finance Director

Operations Manager

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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