Development Management Agreement for South Africa

Development Management Agreement Template for South Africa

A comprehensive legal agreement governed by South African law that establishes the relationship between a property owner/developer and a development manager for the execution of a property development project. The agreement details the scope of development management services, responsibilities, fee structures, and project governance framework while ensuring compliance with South African construction, environmental, and property development regulations. It includes provisions for project oversight, risk management, professional team coordination, and development delivery processes specific to the South African construction and property development context.

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What is a Development Management Agreement?

The Development Management Agreement is a crucial document in South African property development projects, used when a property owner requires professional development management services to oversee and coordinate their development project. This agreement, governed by South African law, establishes the framework for appointing a development manager who will act as the owner's representative in managing the development process. It encompasses crucial elements such as scope of services, fee structures, project governance, and risk allocation, while ensuring compliance with South African construction regulations, environmental laws, and B-BBEE requirements. The document is particularly important for complex development projects where specialized expertise is needed to coordinate multiple stakeholders, manage the professional team, and ensure successful project delivery within the South African regulatory environment.

What sections should be included in a Development Management Agreement?

1. Parties: Identification of the contracting parties - typically 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: Detailed definitions of terms used throughout the agreement and interpretation clauses

4. Appointment and Scope: Formal appointment of the Development Manager and detailed scope of services

5. Duration: Term of the agreement, including commencement date and completion conditions

6. Development Manager's Obligations: Detailed responsibilities and duties of the Development Manager

7. Client's Obligations: Responsibilities and obligations of the Property Owner/Developer

8. Project Governance: Decision-making processes, reporting structures, and approval mechanisms

9. Financial Provisions: Fee structure, payment terms, and financial management requirements

10. Professional Team: Appointment and management of consultants and contractors

11. Risk and Insurance: Risk allocation, required insurance coverage, and indemnities

12. Intellectual Property: Ownership and usage rights of project documentation and designs

13. Confidentiality: Protection of confidential information and trade secrets

14. Termination: Termination rights, procedures, and consequences

15. Dispute Resolution: Procedures for handling disputes and applicable resolution mechanisms

16. General Provisions: Standard boilerplate clauses including notices, governing law, etc.

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

1. Development Funding: Include when specific funding arrangements or requirements need to be addressed

2. Phasing: Required for multi-phase developments to outline staging and progression

3. Environmental Management: Include for projects with significant environmental impacts or requirements

4. B-BBEE Compliance: Detailed section when specific transformation targets or requirements apply

5. Value Engineering: Include when specific cost optimization processes are required

6. Community Engagement: Required for projects with significant community impact or consultation requirements

7. Marketing and Leasing: Include if Development Manager's scope includes marketing/leasing responsibilities

8. Sustainability Requirements: Include for projects with specific green building or sustainability targets

What schedules should be included in a Development Management Agreement?

1. Schedule 1 - Property Description: Detailed description of the property and development site

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 Program: Project timeline, milestones, and delivery dates

5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria

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

7. Schedule 7 - Professional Team Scope: Scope of works for key consultants and contractors

8. Schedule 8 - Development Budget: Detailed project budget and cost breakdown

9. Schedule 9 - Approval Matrix: Decision-making and approval requirements matrix

10. Appendix A - Project Brief: Detailed project requirements and specifications

11. Appendix B - Design Guidelines: Architectural and design requirements

12. Appendix C - Statutory Approvals: List of required permits and approvals

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

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Commercial Property

Residential Property

Industrial Development

Retail Development

Mixed-use Development

Healthcare Facilities

Educational Facilities

Hospitality

Infrastructure Development

Relevant Teams

Development

Construction

Property

Legal

Finance

Project Management

Technical Services

Investment

Asset Management

Risk Management

Procurement

Operations

Relevant Roles

Development Manager

Project Director

Construction Manager

Property Developer

Real Estate Director

Project Manager

Development Director

Construction Director

Property Portfolio Manager

Facilities Manager

Technical Director

Chief Development Officer

Head of Construction

Investment Manager

Asset Manager

Industries
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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