A construction management agreement is an agreement by which the project owner retains the services of a manager to act on its behalf and use his/her experience, knowledge and skills to oversee completion of the project.

A manager will ensure the perfect integration of all design and construction phases of the work, so that the project meets all functionality and aesthetic requirements, while also respecting the athorized budget and timeframe. This template sets out the legal framework of this kind of building construction project.

It should be noted that a construction management agreement is different from a general or specialised contractor agreement, because the manager does not make the work for its own profit, but rather coordinates and supervises the work, the cost of which is assumed by the project owner. A construction management agreement also differs from a project management agreement: in the first, the manager acts as the principal advisor in executing the project for the project owner, whereas in a project management agreement, the manager is wholly responsible for organizing and managing all the aspects of the project.

We recommend using this template when a project owner wishes to delegate to a manager some tasks that are essential to realizing the work. This agreement is particularly useful if the project owner does not have the necessary expertise or experience to complete the construction project without assistance, and to ensure that all construction industry standards are complied with. By using this type of agreement, the project owner retains decision-making powers, while ensuring the input of a management team to help realize the project. 

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Best Efforts
0.01.04 Breach
0.01.05 Confidential Information
0.01.06 Contractor
0.01.07 Design
0.01.08 Encumber or Encumbrance
0.01.09 Equipment
0.01.10 Force Majeure
0.01.11 Intellectual Property
0.01.12 Invoicing Form
0.01.13 Law
0.01.14 Legal Representatives
0.01.15 MANAGER
0.01.16 Materials
0.01.17 Other Contractors
0.01.18 PARTY
0.01.19 Person
0.01.20 Plans
0.01.21 Primary Agreement
0.01.22 Prime Rate
0.01.23 Professional
0.01.24 Project
0.01.25 Related Person
0.01.26 Services
0.01.27 Site
0.01.28 Specifications
0.01.29 Subcontractor
0.01.30 Supplier
0.01.31 Technical Terms
0.01.32 Timeline
0.01.33 Work
0.02 Precedence
0.02.01 Contractual Documents
0.02.02 Ancillary or Subordinate Agreement
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-Compliance
(a) Severability
(b) Substitute Provision
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time Limits
(a) Time of the Essence
(b) Computation of Time
(c) Delays
0.04.03 Financial References
0.04.04 Cross-References
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 Accounting Standards
1.00 PURPOSE
1.01 Services
1.02 Mandate
1.03 Conditions
1.03.01 Required by OWNER
1.03.02 Required by MANAGER
1.03.03 Election
2.00 CONSIDERATION
2.01 Base Amount
2.01.01 Services
2.01.02 Cost of Work
2.02 Adjustments
2.02.01 Timeline
2.02.02 Cost
2.03 Reimbursed Amounts
2.03.01 Admissible Expenses
(a) Real Costs
(b) Administrative Expenses
2.03.02 Supporting Documentation
2.03.03 Conditions
3.00 TERMS OF PAYMENT
3.01 Procedure
3.02 Services
(a) Professional Fees
(b) Cost of Work
(c) Reimbursed Amounts
3.03 Taxes
3.04 Payment
3.05 Adjustment
3.06 Interest
3.07 Indemnity
4.00 SECURITY
4.01 In Favour of OWNER
4.02 In Favour of MANAGER
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Canadian Status
5.06 Insurance
5.07 Nominee
5.08 Disclosure
5.09 Legal Proceedings
6.00 REPRESENTATIONS AND WARRANTIES OF OWNER
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Canadian Resident
6.05 Canadian Status
6.06 Insurance
6.07 Nominee
6.08 Disclosure
6.09 Legal Proceedings
7.00 REPRESENTATIONS AND WARRANTIES OF MANAGER
7.01 Valid Licence
7.02 Insurance
7.03 Resources
7.04 Conflict of Interest
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.03 Insurance
8.03.01 Insured Risks
8.03.02 Amount of Coverage
8.03.03 Insurer
8.03.04 Prior Notice
8.03.05 Additional Named Insured
8.03.06 Certificates of Insurance
8.03.07 No Limitation
8.04 Indemnification
8.04.01 “Loss”
8.04.02 Scope
8.04.03 Procedure
8.04.04 Deductible
8.04.05 Limitation on Claims
8.05 Disclosure of Agreement
8.06 Information
8.07 Collaboration
8.08 Representative
9.00 DUTIES AND OBLIGATIONS OF OWNER
9.01 Primary Agreement
9.01.01 Initial Version
9.01.02 Amendments
9.02 Permits and Fees
9.03 Insurance
9.03.01 Insured Risks
9.03.02 Amount of Coverage
9.03.03 Insurer
9.03.04 Prior Notice
9.03.05 Additional Named Insured
9.03.06 Certificates of Insurance
9.03.07 No Limitation
9.04 Cooperation
9.05 Information Regarding Work
9.06 Access to Site
9.07 Non-Solicitation of Personnel
9.07.01 Scope
9.07.02 Penalty
9.08 Indemnification
9.08.01 “Loss”
9.08.02 Scope
9.08.03 Procedure
9.08.04 Deductible
9.08.05 Limitation on Claims
9.08.06 Exemption from Liability
9.09 Modification
9.09.01 Supplemental Work
(a) Notice
(b) Agreement
10.00 DUTIES AND OBLIGATIONS OF MANAGER
10.01 Operating Permits
10.01.01 Maintaining
10.01.02 Notice of Suspension
10.01.03 Election
10.02 Primary Agreement
10.03 Mandate
10.04 Confidential Information
10.04.01 Undertaking
10.04.02 End of Agreement
10.05 Timeline
10.06 Best Efforts
10.07 Rendering of Account
10.08 Plans and Specifications
10.08.01 Verifying
10.08.02 Notice of Default
10.08.03 Exemption from Liability
10.09 Supervising Work
10.09.01 Representative
10.09.02 Notice
10.10 Conduct
10.11 Supplemental Work
10.12 Subcontractors and Suppliers
10.13 Warranties
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Delays
11.02.01 Caused by OWNER
11.02.02 By Order
11.02.03 Notice
11.03 Force Majeure
11.03.01 No Default
11.03.02 Duty
11.03.03 Rights of Other PARTY
11.04 Relationship
11.04.01 Independent Contractors
11.04.02 No Control Over Performance
11.04.03 No Authority to Bind
11.04.04 Limitation
11.05 Further Assurances
11.06 Remedies
11.06.01 Election
11.06.02 No Limitations
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
(a) Notice
(b) Reply
(c) Appointment of a Third Arbitrator
(d) Subcontracts
(e) Confidentiality
(f) Hearing
(g) Ruling
(h) Costs
(i) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Without Notice
13.04 Prior Notice
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Fixed Term
15.02 Survival
15.03 Non-Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF OWNER
SCHEDULE B – EXCERPT OF A RESOLUTION OF MANAGER
SCHEDULE 0.01.15 – INVOICING FORM
SCHEDULE 0.01.21 – PRIMARY AGREEMENT
SCHEDULE 0.01.24 – PROJECT
SCHEDULE 0.01.26 – DESCRIPTION OF SERVICES