The Development Management Agreement is a crucial document used when a property owner or developer requires professional development management services for their real estate project in Malaysia. It establishes the legal and operational framework for the development manager's engagement, detailing their authority to oversee and coordinate various aspects of the development process, from initial planning through to completion. This agreement is particularly important in the Malaysian context, where development projects must comply with specific local regulations, including the Street, Drainage and Building Act 1974 and the Town and Country Planning Act 1976. The document typically covers project scope, deliverables, fee structures, performance metrics, and risk allocation, while ensuring compliance with Malaysian construction industry standards and legal requirements.
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1. Parties: Identification of the property owner/developer and the development manager
2. Background: Context of the development project, property details, and purpose of the agreement
3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules
4. Appointment and Scope: Formal appointment of development manager and detailed scope of services
5. Development Manager's Obligations: Core responsibilities and duties of the development manager
6. Client's Obligations: Responsibilities and duties of the property owner/developer
7. Project Parameters: Key project specifications, timelines, and deliverables
8. Authority and Limitations: Extent and limits of development manager's authority to act on behalf of the client
9. Fees and Payment: Fee structure, payment terms, and reimbursable expenses
10. Project Team and Personnel: Requirements for key personnel and project team structure
11. Reporting and Communication: Reporting requirements, meetings, and communication protocols
12. Insurance and Liability: Insurance requirements and allocation of liabilities
13. Term and Termination: Duration of agreement and termination provisions
14. Confidentiality: Protection of confidential information and trade secrets
15. Dispute Resolution: Procedures for resolving disputes under Malaysian law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Intellectual Property Rights: Required when development involves creation of unique designs or methodologies
2. Environmental Compliance: Needed for projects with significant environmental impact considerations
3. Marketing and Sales: Include when development manager's scope includes marketing responsibilities
4. Value Engineering: Required when development manager is responsible for cost optimization
5. Community Engagement: Include for projects requiring significant public consultation
6. Force Majeure: Detailed provisions for unforeseen circumstances affecting project delivery
7. Anti-Bribery and Corruption: Enhanced compliance provisions for large-scale public projects
1. Schedule 1 - Property Details: Detailed description of the development site and property particulars
2. Schedule 2 - Services Scope: Detailed breakdown of development management services
3. Schedule 3 - Fee Schedule: Detailed fee structure, including base fees and performance incentives
4. Schedule 4 - Project Timeline: Key milestones, deadlines, and project phases
5. Schedule 5 - Key Personnel: Details of key team members and their roles
6. Schedule 6 - Reporting Requirements: Templates and requirements for project reports
7. Schedule 7 - Authority Matrix: Detailed matrix of approval limits and decision-making authority
8. Schedule 8 - Project Budget: Initial project budget and cost parameters
9. Appendix A - Required Approvals: List of required regulatory and statutory approvals
10. Appendix B - Project Specifications: Technical specifications and requirements for the development
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