Construction Management Agreement Sample

As the construction industry grows, so does the need for effective and efficient construction management. A construction management agreement is a vital document that outlines the duties, responsibilities, and compensation of all parties involved in a construction project. In this article, we will explore a construction management agreement sample and discuss the key elements that it should include.

The Purpose of a Construction Management Agreement

A construction management agreement is a contract that outlines the terms and conditions between the owner or developer of a project and the construction manager. It sets forth the responsibilities and duties of each party involved in a construction project. This agreement is essential because it helps to avoid disputes and provides a framework for the project`s successful completion.

Construction Management Agreement Sample

Below is a sample construction management agreement that illustrates the key elements of this type of contract.

1. Scope of Work and Services

The scope of work and services should be clearly defined. It should state what services the construction manager will provide, including pre-construction services, construction phase services, and post-construction services.

2. Project Timeline

The project timeline should be outlined in the agreement, including milestones and deadlines for completion. The construction manager should be responsible for ensuring that the project is completed on time and within budget.

3. Payment Terms

Payment terms should be clearly stated in the agreement. The construction manager`s compensation should be outlined, including the payment schedule and any bonuses or penalties for completing the project on time or within budget.

4. Insurance and Liability

The construction management agreement should also address insurance and liability issues. The construction manager should carry appropriate liability insurance and name the owner or developer as an additional insured.

5. Termination and Dispute Resolution

The agreement should include provisions for termination and dispute resolution. It should state the grounds for termination and the steps to be taken if a dispute arises.

6. Change Orders

The agreement should also address change orders. The construction manager should document any changes to the project scope, timeline, or budget and obtain written approval from the owner or developer.


A construction management agreement is a critical document that ensures the successful completion of a construction project. It is a complex agreement that requires careful consideration and drafting. The sample construction management agreement provided in this article highlights the key elements that should be included in this type of contract. As a professional, I recommend that you consult with an experienced legal professional before entering into any construction management agreement.