Construction Management Contract for the United Kingdom

Construction Management Contract Template for England and Wales

A Construction Management Contract under English and Welsh law is a comprehensive agreement that establishes the relationship between a client and a construction manager, who acts as the client's representative in managing and coordinating construction projects. This contract type is governed by key legislation including the Housing Grants, Construction and Regeneration Act 1996 and the Construction (Design and Management) Regulations 2015. It details the scope of services, payment terms, responsibilities, and project management procedures while ensuring compliance with relevant building regulations and health and safety requirements.

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What is a Construction Management Contract?

The Construction Management Contract is utilized when a client requires professional construction management services for complex building projects. This contract type, governed by English and Welsh law, establishes the framework for the construction manager to act as the client's agent, managing trade contractors and coordinating construction activities. It includes detailed provisions for project coordination, cost control, scheduling, quality management, and risk allocation. The agreement ensures compliance with relevant construction legislation while providing clear guidelines for project delivery, payment mechanisms, and dispute resolution procedures.

What sections should be included in a Construction Management Contract?

1. Parties: Identifies and defines the contracting parties

2. Background: Provides context and purpose of the agreement

3. Definitions: Defines key terms used throughout the contract

4. Scope of Services: Details the construction management services to be provided

5. Project Programme: Outlines project timeline and key milestones

6. Payment Terms: Specifies fees, payment schedule, and mechanisms

7. Obligations and Responsibilities: Details duties of construction manager and client

8. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Construction Management Contract?

1. Performance Bonds: Additional security provisions required for high-value projects or when client requires additional security

2. Parent Company Guarantee: Guarantees from parent company of construction manager when construction manager is subsidiary of larger organization

3. BIM Protocol: Building Information Modeling requirements when project involves BIM implementation

What schedules should be included in a Construction Management Contract?

1. Schedule of Services: Detailed breakdown of construction management services

2. Fee Schedule: Detailed breakdown of fees and payment terms

3. Project Programme: Detailed project timeline and milestones

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

5. Insurance Requirements: Details of required insurance coverage

6. Site Information: Details about the construction site and conditions

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

England and Wales

Publisher

Genie AI

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Housing Grants, Construction and Regeneration Act 1996: Key construction legislation covering payment provisions, statutory right to adjudication, and notice requirements. Amended by Local Democracy, Economic Development and Construction Act 2009.

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may be given rights under the construction contract and the extent of their enforcement abilities.

Late Payment of Commercial Debts (Interest) Act 1998: Regulates interest payments on late commercial payments, including statutory interest rates and compensation for late payment.

Construction (Design and Management) Regulations 2015: Health and safety regulations specifying duties of construction project participants, including principal contractors and designers. Known as CDM Regulations.

Supply of Goods and Services Act 1982: Sets out implied terms for quality of service and workmanship in construction contracts.

Defective Premises Act 1972: Imposes duties regarding the quality of workmanship and materials in construction of dwellings.

Building Act 1984: Primary legislation governing building works and regulations in England and Wales.

Building Regulations 2010: Detailed technical requirements for building works, including structural stability, fire safety, and energy efficiency.

Health and Safety at Work etc. Act 1974: Fundamental health and safety legislation establishing general duties for employers and employees in construction.

Environmental Protection Act 1990: Controls environmental impacts of construction activities, including waste management and pollution prevention.

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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