Construction Management At Risk Agreement Template for England and Wales

A Construction Management At Risk Agreement is a specialized construction contract that allows you to engage a construction manager early in the design phase while securing cost protection through a guaranteed maximum price (GMP). This contract type combines the collaborative benefits of construction management with the financial security of traditional fixed-price arrangements, making it particularly valuable for complex projects in England and Wales.

When do you need this document?

You need this agreement when undertaking complex construction projects that benefit from early contractor involvement, such as hospitals, schools, or commercial developments where design and construction phases overlap. It's essential when you want to leverage a construction manager's expertise during design development while maintaining budget certainty. This contract type is particularly useful for fast-track projects where construction must begin before final designs are complete, or when project complexity requires specialized construction knowledge during the design phase. Many public sector clients in England and Wales use this approach to balance innovation with financial accountability.

Key legal considerations

The agreement must clearly define the guaranteed maximum price mechanism and how changes to project scope affect this ceiling. Risk allocation provisions are critical, particularly regarding design changes, site conditions, and third-party delays. You must ensure robust change management procedures that comply with the Housing Grants, Construction and Regeneration Act 1996's notice requirements. Payment terms must include statutory rights to adjudication and fair dealing provisions. Insurance requirements should address professional indemnity for design-related services and public liability for construction activities. The contract should specify how cost savings below the GMP are shared between parties and establish clear performance criteria for both design and construction phases.

Legal requirements in England and Wales

Your agreement must comply with the Housing Grants, Construction and Regeneration Act 1996, ensuring proper payment notice procedures, adjudication rights, and suspension rights for non-payment. The Construction (Design and Management) Regulations 2015 impose specific duties on principal contractors and clients, requiring clear health and safety responsibilities in your contract. Building Act 1984 compliance provisions must address building control approval processes and statutory notices. Under the Contracts (Rights of Third Parties) Act 1999, you should explicitly address whether subcontractors or other parties can enforce contract terms. The Late Payment of Commercial Debts (Interest) Act 1998 governs payment terms and interest provisions, requiring careful drafting of payment clauses to avoid unintended statutory interest obligations.