The Project Management Agreement (Construction) is a crucial document used when engaging professional project management services for construction projects in India. It establishes the legal and operational framework for managing construction projects, ensuring compliance with Indian regulations including the Real Estate (Regulation and Development) Act, 2016, and various state-specific construction laws. This agreement is essential when a project owner needs specialized expertise to oversee complex construction projects, coordinate multiple stakeholders, and ensure efficient project delivery. The document typically includes detailed provisions for scope of services, authority matrices, payment terms, compliance requirements, and risk allocation, tailored to meet specific project needs while adhering to Indian legal requirements. It's particularly important for large-scale construction projects where professional project management is critical for successful project execution.
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1. Parties: Identifies and provides details of the contracting parties - typically the Client/Owner and the Project Manager
2. Background: Contextual information about the project and the purpose of engaging the project manager
3. Definitions and Interpretation: Defines key terms used throughout the agreement and rules for interpreting the document
4. Appointment and Term: Formal appointment of the project manager, duration of the agreement, and any renewal terms
5. Scope of Services: Detailed description of the project management services to be provided
6. Project Manager's Obligations: Key responsibilities and duties of the project manager including reporting, coordination, and quality management
7. Client's Obligations: Responsibilities of the client including providing information, access, and approvals
8. Authority and Limitations: Extent and limitations of the project manager's authority to act on behalf of the client
9. Fee Structure and Payment Terms: Project management fees, payment schedule, and related financial terms
10. Project Timeline: Key project milestones, phases, and completion dates
11. Personnel and Resources: Requirements for project management team, key personnel, and resources
12. Reporting and Documentation: Requirements for project reports, documentation, and communication protocols
13. Changes and Variations: Procedures for handling changes to scope, timeline, or fees
14. Insurance and Liability: Insurance requirements and limitation of liability provisions
15. Termination: Grounds and procedures for termination of the agreement
16. Confidentiality: Protection of confidential information and intellectual property
17. Dispute Resolution: Procedures for resolving disputes between parties
18. General Provisions: Standard legal provisions including notices, governing law, and entire agreement
1. Performance Guarantees: Specific performance metrics and guarantees, used when client requires quantifiable performance standards
2. Technology and Software: Terms regarding use of project management software and technology, included when specific systems are mandated
3. International Considerations: Special provisions for international projects, included when project involves cross-border elements
4. Sustainability Requirements: Green building and sustainability obligations, included for projects with specific environmental goals
5. Force Majeure: Provisions for handling unforeseen circumstances, particularly relevant in long-term or high-risk projects
6. Step-in Rights: Client's right to take over project manager's role in specific circumstances, used in critical or high-value projects
7. Anti-Corruption: Specific anti-corruption and compliance provisions, important for public projects or when required by client policy
1. Schedule A - Scope of Services: Detailed breakdown of project management services and deliverables
2. Schedule B - Fee Schedule: Detailed fee structure, rates, and payment terms
3. Schedule C - Project Timeline: Detailed project schedule, milestones, and completion dates
4. Schedule D - Key Personnel: Details of key project management team members and their roles
5. Schedule E - Reporting Requirements: Formats and frequencies of required reports and documentation
6. Schedule F - Client's Requirements: Detailed technical and operational requirements from the client
7. Schedule G - Project Quality Plan: Quality management procedures and standards
8. Schedule H - Health and Safety Requirements: Safety protocols and compliance requirements
9. Appendix 1 - Project Site Details: Information about the construction site and existing conditions
10. Appendix 2 - Required Forms and Templates: Standard forms for project documentation and reporting
11. Appendix 3 - Insurance Requirements: Detailed insurance coverage requirements and limits
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