Construction Management Contract Template for England and Wales

A Construction Management Contract is a specialised legal agreement that establishes the relationship between a client and construction manager for complex building projects. Under this arrangement, you engage a construction manager to act as your agent, coordinating multiple trade contractors and overseeing the entire construction process. Unlike traditional contracting methods, the construction manager typically provides management services rather than direct construction work, giving you greater control over the project while benefiting from professional expertise.

When do you need this document?

You need a Construction Management Contract when undertaking large-scale or complex construction projects where coordination between multiple specialists is crucial. This contract type is particularly valuable for commercial developments, industrial facilities, or major residential projects where you want to maintain direct contractual relationships with trade contractors while having professional management oversight. It's also essential when project requirements may evolve during construction, as this approach provides flexibility to adapt the scope of work. Many clients choose this route when they need fast-track delivery or want to start construction before design is fully complete.

Key legal considerations

Several critical legal provisions must be carefully addressed in your Construction Management Contract. Payment terms require particular attention, including the construction manager's fees, reimbursable expenses, and payment schedules that comply with construction legislation. You must clearly define the scope of the construction manager's authority, including their power to instruct trade contractors and make decisions on your behalf. Liability and insurance provisions are crucial, particularly regarding professional indemnity and the allocation of risk between parties. The contract should address intellectual property rights, confidentiality obligations, and termination procedures. Dispute resolution mechanisms, including adjudication rights, must be properly structured to ensure quick resolution of any conflicts that arise during the project.

Legal requirements in England and Wales

Your Construction Management Contract must comply with specific English and Welsh construction legislation. The Housing Grants, Construction and Regeneration Act 1996 mandates certain payment provisions, including the right to interim payments and statutory adjudication procedures for dispute resolution. You must ensure payment notices and mechanisms align with these requirements. The Construction (Design and Management) Regulations 2015 impose health and safety duties that must be reflected in the contract, particularly regarding the construction manager's role in coordinating safety measures. The Late Payment of Commercial Debts (Interest) Act 1998 governs interest on delayed payments, while the Contracts (Rights of Third Parties) Act 1999 affects how trade contractors and other parties may acquire rights under your agreement. Your contract must also address statutory rights to suspend work for non-payment and comply with adjudication procedures as amended by the Local Democracy, Economic Development and Construction Act 2009.