A standard form of agreement between owner and Construction Manager is one that is entered into for the purpose of undertaking construction by the owner of the party. In this agreement the owner hires the services of the construction manager by setting out terms that are commonly acceptable in the construction industry. This agreement is not negotiable between the owner and the construction manager and only the owner has the right to set the terms and conditions in the agreement.
Some of the essential terms and conditions that are provided in this agreement are name and address of the construction manager, type of relationship between owner and construction manager, costs that are subject to reimbursement and those that are not subject to reimbursement, responsibilities of construction manager, owner’s responsibilities, compensation to construction manager, mode of payment of compensation, termination of construction manager and terms subject to this clause, dispute resolution between both the parties etc.
[Also Read: Construction Subcontractor Agreement]