Development Management Agreement Template for United States

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Key Requirements PROMPT example:

Development Management Agreement

"I need a Development Management Agreement for a mixed-use commercial project in Dallas, Texas, where we're appointing ABC Development Services as the development manager with a 3% base fee and 1% success fee, starting March 2025, with specific provisions for sustainable building practices and LEED certification requirements."

Document background
The Development Management Agreement serves as a critical document in real estate development projects across the United States. It is typically used when property owners or developers require specialized expertise to oversee complex development projects but wish to maintain ultimate control over their investments. The agreement defines the development manager's role in coordinating various aspects of the project, including design, construction, budgeting, and scheduling, while establishing clear lines of authority and decision-making processes. This document includes detailed provisions for compensation, risk allocation, and performance standards, ensuring alignment between the parties' interests and project objectives. The agreement must comply with federal, state, and local regulations governing real estate development and construction management.
Suggested Sections

1. Parties: Identification of the property owner/developer and the development manager

2. Background: Context of the development project and the purpose of engaging a development manager

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of development management services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination

6. Compensation: Fee structure, payment terms, and reimbursable expenses

7. Responsibilities and Authority: Specific duties and limitations of the development manager's authority

8. Standard of Care: Professional standards and quality expectations

9. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

Optional Sections

1. Project Financing: Terms related to securing and managing project funding when development manager has responsibilities related to financing

2. Sustainability Requirements: Green building and environmental standards for projects with specific environmental goals or certifications

3. Marketing and Leasing: Responsibilities related to property marketing and tenant acquisition when development manager's scope includes leasing responsibilities

4. Value Engineering: Processes for cost optimization and analysis when cost management is a key concern

Suggested Schedules

1. Schedule A - Project Description: Detailed description of the development project

2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment structure

3. Schedule C - Project Timeline: Key milestones and project schedule

4. Schedule D - Required Insurance: Specific insurance requirements and coverage limits

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

6. Schedule F - Reporting Requirements: Format and frequency of required reports

7. Schedule G - Project Budget: Detailed project budget and cost estimates

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

Relevant legal definitions
Clauses
Industries

Federal Environmental Laws: National Environmental Policy Act (NEPA) requirements for environmental impact assessment and protection during development projects

Americans with Disabilities Act: Federal regulations ensuring accessibility requirements in development projects

Fair Housing Act: Federal law prohibiting discrimination in housing development and ensuring equal housing opportunities

OSHA Regulations: Occupational Safety and Health Act requirements for workplace safety during construction and development

Davis-Bacon Act: Federal law requiring payment of prevailing wages on federally funded construction projects

State Building Codes: State-specific construction and building safety requirements and standards

State Contractor Licensing: State-specific requirements for contractor licensing and certification

Local Zoning Laws: Municipal zoning ordinances and land use regulations affecting development projects

Contract Law: Uniform Commercial Code (UCC) and state-specific contract law requirements for development agreements

Insurance Requirements: Professional and general liability insurance requirements for development projects

Employment Laws: Federal and state labor laws including Fair Labor Standards Act and Equal Employment Opportunity requirements

Professional Standards: Industry standards including AIA (American Institute of Architects) guidelines and construction industry best practices

Financial Regulations: Banking, securities, and anti-money laundering regulations applicable to development financing

Intellectual Property Laws: Copyright, trademark, and patent laws affecting development designs and innovations

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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