Contract with Construction Manager by pellcity27


									                           Contract with Construction Manager

Agreement for On-Site Construction Management Services between (Name of Property
Owner), a corporation organized and existing under the laws of the state of (name of
state), with its principal office located at (street address, city, state, zip code), referred to
herein as Owner, and (Name of Property Manager), a corporation organized and
existing under the laws of the state of (name of state), with its principal office located at
(street address, city, state, zip code), referred to herein as Manager.

Whereas, Owner is contemplating the construction of a building to be used for (purpose
of building), hereinafter called the Project; and

Whereas, Owner needs to retain the services of a construction manager, who will be
responsible for assisting the Owner in inspection and management of the Project; and

Whereas, Manager is in the business and has experience in providing construction
management services and is willing to provide such services to Owner for a specified
rate of compensation;

Now, therefore, in consideration of the foregoing and mutual covenants contained in this
Agreement, the parties agree as follows:

I.     Definitions.
       A.      Work means the entire completed construction or the various separately
       identifiable parts of it required to be furnished under the contract documents.
       Work is the result of performing services, furnishing labor and furnishing and
       incorporating materials and equipment into the construction, all as required by
       the contract documents.

       B.     Contract Documents means the Agreement, addenda (which pertain to
       the Contract Documents), contractor's bid (including documentation
       accompanying the bid and any post-bid documentation submitted prior to the
       notice of award) when attached as an exhibit to the Agreement, the bonds, these
       general conditions, the supplementary conditions, the specifications and the
       drawings as they are more specifically identified in this Agreement, together with
       all amendments, modifications and supplements issued.

II.    Scope of Services.
       A.     Manager shall provide all field superintendents, inspectors, and clerical
       help required to perform the terms of this Agreement. Manager shall coordinate
       the work of Contractor with the activities and responsibilities of Owner and
       Owner's Engineer to complete the Project in accordance with Owner's cost
objectives, time restraints, and quality requirements, providing sufficient
personnel at the Project site with authority to achieve these objectives. Manager
shall schedule and conduct preconstruction and progress meetings at which
Contractor, Owner, Engineer, and discuss procedures, progress, problems, and
scheduling. Manager shall provide a detailed schedule for Contractor's
operations at the Project site, including realistic activity sequences time
requirements, allocation of labor and materials, processing of shop drawings and
samples, and delivery of products requiring long lead time procurement.

B.     In preparing the schedule, Manager shall consider Owner's occupancy
requirements, giving priority to those portions of the Project that Owner requires
for early occupancy. Manager shall:

       1.     Review the Project schedule weekly as construction progresses,
      identifying potential variances between scheduled and probable
      completion dates, and work not started or incomplete.

      2.    Recommend to Owner and Contractor adjustments in the schedule
      to meet probable completion dates, providing weekly summary reports of
      each review that document all schedule changes.

      3.     Recommend courses of action for Owner to take when
      requirements of a contract are not being fulfilled.

      4.      Review monthly the approved and budgeted Project costs
      identifying actual costs for work in process and preparing estimates for
      uncompleted tasks.

      5.     Manager shall advise Owner and Engineer whenever projected
      costs exceed approved and budgeted Project costs.

      6.    Maintain cost accounting records for authorized work performed
      under unit costs and actual costs for labor and materials.

      7.    Develop and implement a system for reviewing and processing
      change orders, recommending necessary or desirable changes to Owner
      and Engineer and assisting in negotiating them.

      8.     Develop and implement a procedure for reviewing and processing
      Contractor's applications for payment requesting progress or final
      payments, making recommendations to Engineer for certification to Owner
      for payment.
9.       Assist in obtaining all building permits and special permits for
permanent facilities, excluding inspection permits or permits for temporary
facilities to be obtained directly by Contractor.

10.  Verify that Owner has paid all applicable fees and assessments for
permanent facilities.

11.   Assist Owner in selecting and retaining professional services of
surveyors, special consultants and testing laboratories, if required, and in
coordinating these services.

12.   Inspect Contractor's work to assure that the work is being
performed in accordance with the requirements of the contract documents.

13.    If Manager becomes aware of any fault or defect in the Project or
nonconformance with the contract documents, Manager shall give prompt
written notice of the fault or defect to Owner.

14.    Manager shall require Contractor to stop work on any portion of the
Project, requiring special inspection or testing of any work not in
accordance with the provisions of the contract documents whether or not
the work is then fabricated, installed or completed.

15.    Manager shall reject work that does not conform to the
requirements of the Contract Documents.

16.    Manager is not responsible for construction means, methods,
techniques, sequences and procedures employed by Contractor in the
performance of the contract, and Manager is not responsible for the failure
of Contractor to carry out the work in accordance with the contract

17.   Manager shall consult with Engineer and Owner if Contractor
requests interpretations of the meaning and intent of the contract
documents, assisting in the resolution of any questions that may arise.

18.   In collaboration with Engineer, Manager shall develop and
implement procedures for expediting the processing and approval of shop
drawings and samples.
             19.   Manager shall submit monthly written progress reports to Owner
             and Engineer, including information concerning Contractor and work, the
             percentage of work completed, and the number of change orders.

             20.    Manager shall keep a daily log available to Owner and Engineer.

             21.    Manager shall maintain current records of all contracts documents;
             shop drawings; samples; purchases; materials; equipment; applicable
             handbooks; federal, commercial and technical standards and
             specifications; maintenance and operating manuals and instructions; and
             any other related documents and revisions that arise out of the contract or
             the work.

             22.     Manager shall obtain data from Contractor and maintain a current
             set of records, drawings, specifications, and operating manuals, and at the
             completion of the Project, deliver all the records to Owner.

             23.    Manager shall inspect, accept delivery and arrange storage,
             protection and security for all materials, systems and equipment
             purchased by Owner that are a part of the work until the items are turned
             over to Contractor.

             24.    On Contractor's determination of substantial completion of the work
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