Development Management Agreement for New Zealand

Development Management Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the relationship between a property owner/developer and a development manager. The agreement outlines the scope of development management services, responsibilities, fee structures, and project control mechanisms. It incorporates key requirements under New Zealand's Building Act 2004, Resource Management Act 1991, and Construction Contracts Act 2002, while ensuring compliance with local authority regulations and industry standards. The document provides a framework for project delivery, risk management, and successful development outcomes within the New Zealand construction and property development context.

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What is a Development Management Agreement?

The Development Management Agreement is a crucial document used in New Zealand's property development sector when engaging professional development management services for construction and development projects. It establishes the legal and operational framework for the relationship between the property owner/developer and the development manager, defining their respective rights, obligations, and responsibilities. The agreement is particularly important in the New Zealand context, where development projects must comply with specific legislative requirements including the Building Act 2004, Resource Management Act 1991, and local council regulations. This document typically includes detailed provisions for project scope, fee structures, authority levels, reporting requirements, and risk allocation, while ensuring alignment with New Zealand's construction industry practices and standards. The Development Management Agreement serves as the primary contract governing the delivery of development management services and is essential for projects ranging from commercial and residential developments to large-scale mixed-use projects.

What sections should be included in a Development Management Agreement?

1. Parties: Identifies and defines all parties to the agreement, including the property owner/client and the development manager

2. Background: Sets out the context of the agreement, including details of the development project and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Appointment and Term: Establishes the formal appointment of the development manager and the duration of the agreement

5. Development Manager's Services: Detailed description of the core services to be provided by the development manager

6. Client's Obligations: Outlines the responsibilities and obligations of the client/property owner

7. Fees and Payment: Details the fee structure, payment terms, and any performance-based compensation

8. Project Controls and Reporting: Establishes project management procedures, reporting requirements, and approval processes

9. Authority and Limitations: Defines the development manager's authority to act and any limitations on that authority

10. Intellectual Property: Addresses ownership and usage rights of project-related intellectual property

11. Confidentiality: Sets out obligations regarding confidential information

12. Liability and Indemnification: Establishes liability limits and indemnification obligations

13. Insurance: Specifies required insurance coverage and obligations

14. Termination: Details circumstances and procedures for termination of the agreement

15. Dispute Resolution: Establishes procedures for resolving disputes between parties

16. General Provisions: Contains standard boilerplate clauses including notices, assignments, amendments, etc.

What sections are optional to include in a Development Management Agreement?

1. Development Budget: Detailed section about budget management and control - used when the development manager has significant budget responsibility

2. Value Engineering: Specific provisions for cost optimization - included when cost management is a key focus

3. Sustainability Requirements: Special provisions for green building or sustainability targets - used for projects with specific environmental goals

4. Marketing and Sales: Included when the development manager's scope includes marketing/sales responsibilities

5. Multiple Stage Provisions: Used for projects with distinct development stages requiring different approaches

6. Community Engagement: Required when the project needs significant community consultation

7. Heritage Considerations: Included for projects involving heritage buildings or sites

8. Force Majeure: Detailed provisions for unforeseen events - particularly relevant post-COVID

9. Key Personnel: Used when specific individuals are crucial to the project delivery

10. Third Party Agreements: Required when managing relationships with multiple stakeholders or contractors

What schedules should be included in a Development Management Agreement?

1. Schedule 1 - Services Scope: Detailed breakdown of all services to be provided by the development manager

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, including base fees, performance fees, and disbursements

3. Schedule 3 - Project Program: Project timeline, milestones, and key dates

4. Schedule 4 - Development Budget: Detailed project budget including all cost categories

5. Schedule 5 - Approval Process: Detailed procedures for obtaining necessary approvals

6. Schedule 6 - Reporting Requirements: Templates and requirements for project reporting

7. Schedule 7 - Key Personnel: Details of key team members and their roles

8. Schedule 8 - Site Details: Legal description and relevant details of the development site

9. Appendix A - Project Plans: Preliminary designs, concepts, or approved plans

10. Appendix B - Consultant Agreements: Forms of agreement for engaging consultants

11. Appendix C - Insurance Requirements: Detailed insurance specifications and requirements

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

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Real Estate Development

Commercial Property

Residential Property

Industrial Development

Mixed-Use Development

Infrastructure Development

Retail Development

Healthcare Facilities

Educational Facilities

Hospitality and Tourism

Urban Regeneration

Relevant Teams

Legal

Development

Project Management

Construction

Commercial

Property

Operations

Finance

Risk and Compliance

Asset Management

Investment

Planning and Design

Procurement

Strategy

Relevant Roles

Development Manager

Project Director

Property Developer

Construction Manager

Development Director

Investment Manager

Asset Manager

Project Manager

Commercial Director

Development Coordinator

Chief Development Officer

Property Manager

Construction Director

Portfolio Manager

Legal Counsel

Risk Manager

Financial Controller

Managing Director

Operations Manager

Compliance Manager

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What is a Development Management Agreement?

What sections should be included in a Development Management Agreement?

What sections are optional to include in a Development Management Agreement?

What schedules should be included in a Development Management Agreement?

Authors

Alex Denne

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