The Project Management Agreement (Construction) is essential for construction projects in Pakistan where professional project management services are required to oversee and coordinate complex construction activities. This document is typically used when a property owner or developer needs to engage a specialized project management firm to handle day-to-day project oversight, coordination with contractors, compliance with local regulations, and overall project delivery. The agreement operates within the framework of Pakistani law, particularly the Contract Act 1872 and Pakistan Engineering Council regulations, and includes detailed provisions for scope of services, payment terms, performance standards, and risk allocation. It's particularly crucial for large-scale construction projects where systematic management and professional expertise are required to ensure successful project completion.
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1. Parties: Identification and details of the Client and the Project Manager, including their registered addresses and company registration details
2. Background: Context of the agreement, brief description of the project, and the basis for engaging the Project Manager
3. Definitions: Definitions of key terms used throughout the agreement, including Project, Services, Works, and other technical terms
4. Appointment and Term: Formal appointment of the Project Manager, duration of the agreement, and conditions for extension
5. Scope of Services: Detailed description of the project management services to be provided, including pre-construction, construction, and post-construction phases
6. Project Manager's Obligations: Specific duties, responsibilities, and standard of care required from the Project Manager
7. Client's Obligations: Responsibilities and obligations of the Client, including provision of information and timely decision-making
8. Representatives and Personnel: Key personnel requirements, qualification standards, and procedures for replacement
9. Fees and Payment: Fee structure, payment schedule, expenses, and payment terms
10. Changes and Variations: Procedures for handling changes to scope, fees, or services
11. Insurance and Liability: Insurance requirements, liability limitations, and indemnification provisions
12. Intellectual Property: Ownership and usage rights of project documents and deliverables
13. Confidentiality: Protection and handling of confidential information
14. Termination: Grounds for termination, termination procedures, and consequences
15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
16. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement
1. Performance Guarantees: Required when specific performance metrics or guarantees are needed for the project
2. Local Content Requirements: Included when there are specific requirements for local resource utilization or compliance with local content laws
3. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant in long-term or high-risk projects
4. Step-In Rights: Included when the Client requires the right to take over project management functions in specific circumstances
5. Environmental Compliance: Detailed environmental obligations when the project has significant environmental impacts
6. Health and Safety: Specific health and safety requirements for high-risk construction projects
7. Anti-Corruption Provisions: Detailed anti-corruption clauses for projects involving government entities or international funding
8. Subcontracting: Included when the Project Manager is expected to subcontract significant portions of the services
1. Schedule 1 - Scope of Services: Detailed breakdown of all project management services and deliverables
2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment milestones
3. Schedule 3 - Project Program: Project timeline, milestones, and key dates
4. Schedule 4 - Key Personnel: Details of key team members, their roles, and qualifications
5. Schedule 5 - Client's Requirements: Detailed specification of Client's project requirements and objectives
6. Schedule 6 - Reporting Requirements: Format and frequency of project reports and communications
7. Schedule 7 - Site Information: Details of the project site and any relevant site conditions
8. Schedule 8 - Forms and Templates: Standard forms for variations, instructions, and other project documentation
9. Appendix A - Insurance Requirements: Detailed insurance requirements and minimum coverage levels
10. Appendix B - Quality Management Plan: Quality standards and procedures to be followed during the project
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