Development Management Agreement Template for England and Wales

A Development Management Agreement is a specialized contract that governs the relationship between property owners or developers and professional development managers in real estate projects. This document establishes the framework for managing complex construction and development projects while defining roles, responsibilities, and compensation structures under United States law.

When do you need this document?

You need a Development Management Agreement when undertaking significant real estate development projects that require specialized expertise and coordination. This includes commercial developments, residential subdivisions, mixed-use projects, and large-scale renovations where you want to maintain ownership control while delegating day-to-day management responsibilities. The agreement is essential when working with multiple contractors, architects, and consultants who need centralized coordination. You'll also need this document when project lenders require professional development management as a condition of financing, or when the complexity and scale of your project exceed your internal management capabilities.

Key legal considerations

The scope of services clause is critical and should clearly define the development manager's responsibilities, including design coordination, contractor selection, budget management, and progress reporting. Compensation structures must be carefully negotiated, whether based on fixed fees, percentage of construction costs, or performance incentives. Risk allocation provisions should address liability for cost overruns, delays, and construction defects, with appropriate insurance requirements for all parties. Termination clauses must specify conditions for ending the agreement and procedures for transitioning responsibilities. The agreement should include detailed reporting requirements, approval processes for major decisions, and clear lines of authority between the owner and development manager. Intellectual property provisions should address ownership of project plans, specifications, and other development materials.

Legal requirements in United States

Development Management Agreements must comply with federal environmental laws, including NEPA requirements for environmental impact assessments on applicable projects. The agreement must ensure compliance with Americans with Disabilities Act accessibility standards and Fair Housing Act anti-discrimination provisions in residential developments. OSHA workplace safety regulations must be incorporated into construction management responsibilities, and Davis-Bacon Act prevailing wage requirements apply to federally funded projects. State-specific building codes and contractor licensing requirements vary by jurisdiction and must be addressed in the agreement. Many states require written contracts for construction management services exceeding certain dollar thresholds. The agreement should specify which party bears responsibility for obtaining necessary permits, licenses, and regulatory approvals. Professional liability insurance requirements for development managers are typically mandated by state law and should be clearly defined in the contract.