Owner Construction Manager Agreement Template for United States

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Key Requirements PROMPT example:

Owner Construction Manager Agreement

"I need an Owner Construction Manager Agreement for a new 50,000 square foot commercial office building project in Texas, where the construction manager will be involved in both pre-construction and construction phases, with a Guaranteed Maximum Price structure and completion date of December 2025."

Document background

The Owner Construction Manager Agreement is essential for complex construction projects in the United States where professional management services are required beyond traditional general contracting. This document establishes the construction manager's role either as an advisor (CM as Agent) or as a party assuming financial risk (CM at Risk). It defines crucial elements including pre-construction services, construction phase services, payment terms, quality standards, and project coordination responsibilities. The agreement must comply with state-specific construction laws and industry standards while protecting both parties' interests throughout the project lifecycle.

Suggested Sections

1. Parties: Identifies and defines the Owner and Construction Manager with full legal names and addresses

2. Background: Outlines the project context and the parties' intention to enter into a construction management agreement

3. Definitions: Defines key terms used throughout the agreement including Project, Services, Contract Documents, and other relevant terminology

4. Scope of Services: Details the Construction Manager's responsibilities and services throughout all phases of the project

5. Compensation: Outlines fee structure, payment terms, and reimbursable expenses

6. Project Schedule: Establishes timeline, milestones, and completion dates

7. Insurance Requirements: Specifies required insurance coverage and limits for all parties

8. Termination: Details conditions and procedures for contract termination by either party

Optional Sections

1. Pre-Construction Services: Details services provided before construction begins, including design review, cost estimating, and scheduling

2. Guaranteed Maximum Price: Establishes maximum project cost guarantee and procedures for cost control

3. Value Engineering: Procedures for cost optimization and alternative solutions analysis

4. Multiple Prime Contractors: Coordination procedures and responsibilities when multiple contractors are involved in the project

Suggested Schedules

1. Schedule A - Scope of Services: Detailed breakdown of Construction Manager's services and responsibilities

2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment terms, and reimbursable expenses

3. Schedule C - Project Schedule: Detailed project timeline, milestones, and completion dates

4. Schedule D - Key Personnel: List of key team members, their roles, and responsibilities

5. Schedule E - Insurance Requirements: Detailed insurance specifications and coverage limits

6. Schedule F - Project Documents: List of relevant drawings, specifications, and other contract documents

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Commercial Real Estate
Residential Development
Industrial
Healthcare
Education
Infrastructure

Relevant Teams

Legal
Construction
Operations
Finance
Procurement
Risk Management

Relevant Roles

Project Manager
Construction Manager
Contract Administrator
Real Estate Developer
General Counsel
Facilities Director

Industries

Federal Contract Law: Common law principles governing contract formation, enforcement, and remedies in construction agreements

Davis-Bacon Act: Federal law requiring payment of prevailing wages on federally funded construction projects

Americans with Disabilities Act (ADA): Federal law ensuring accessibility requirements in construction and design

OSHA Regulations: Occupational Safety and Health Administration standards for workplace safety and health in construction

Fair Labor Standards Act: Federal law governing minimum wage, overtime pay, and child labor regulations

National Labor Relations Act: Federal law governing labor relations and collective bargaining rights

EPA Regulations: Environmental Protection Agency requirements for construction projects including environmental impact and pollution control

State Construction Lien Laws: State-specific regulations governing mechanics liens and payment security rights

State Licensing Requirements: State-specific contractor licensing and certification requirements

State Building Codes: State-specific construction and building safety standards

State Workers' Compensation Laws: State-specific requirements for workers' compensation insurance and workplace injury coverage

Local Building Codes: Municipal-specific construction requirements and standards

Zoning Regulations: Local land use and development restrictions affecting construction projects

Permit Requirements: Local and state permitting processes and requirements for construction projects

AIA Standards: American Institute of Architects standardized contract documents and industry practices

CMAA Standards: Construction Management Association of America professional standards and guidelines

Payment Terms Requirements: Legal requirements for payment structures, timing, and documentation in construction contracts

Insurance Requirements: Mandatory insurance coverage including general liability, builder's risk, and professional liability

Bonding Requirements: Performance and payment bond requirements for construction projects

Dispute Resolution Procedures: Legal framework for handling disputes, including mediation, arbitration, and litigation provisions

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Authors

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