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Construction Management Contract Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the relationship between a Principal/Owner and a Construction Manager for the management of construction projects. The contract defines the Construction Manager's scope of services, responsibilities, and authority in managing the construction process, including pre-construction planning, procurement, construction phase services, and project close-out. It incorporates specific requirements under Hong Kong construction law and practice, addressing key aspects such as statutory compliance, safety regulations, and local industry standards.

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What is a Construction Management Contract?

The Construction Management Contract is essential for projects where the Principal/Owner wishes to engage a professional Construction Manager to oversee and manage the construction process in Hong Kong. This document type is particularly suitable for complex projects requiring sophisticated project management expertise and coordination of multiple stakeholders. The contract defines the Construction Manager's role as the Principal's representative, outlining their authority to manage sub-contractors, coordinate with design professionals, and oversee construction activities while ensuring compliance with Hong Kong building regulations and construction standards. It includes comprehensive provisions for project management procedures, risk allocation, payment mechanisms, and dispute resolution, tailored to Hong Kong's legal framework and construction industry practices.

What sections should be included in a Construction Management Contract?

1. Parties: Identifies and provides details of the Principal/Owner and the Construction Manager

2. Background: Describes the project context and the Principal's intention to engage the Construction Manager

3. Definitions and Interpretation: Defines key terms and establishes rules of interpretation for the contract

4. Appointment and Duration: Formal appointment of the Construction Manager and contract duration terms

5. Construction Manager's Obligations: Details core services and responsibilities including pre-construction, construction, and post-construction phases

6. Principal's Obligations: Outlines the Principal's responsibilities including information provision and decision-making

7. Project Management Procedures: Establishes procedures for project coordination, reporting, and management

8. Sub-Contractor Management: Procedures for selection, appointment, and management of sub-contractors

9. Payment Terms: Details of fees, payment schedule, and payment procedures

10. Variations: Procedures for handling changes to scope or services

11. Insurance and Liability: Insurance requirements and liability limitations

12. Termination: Grounds and procedures for contract termination

13. Dispute Resolution: Procedures for handling disputes including mediation and arbitration

14. General Provisions: Standard contract clauses including notices, governing law, and entire agreement

What sections are optional to include in a Construction Management Contract?

1. Design Management: Include when Construction Manager has design review or management responsibilities

2. Value Engineering: Include when Construction Manager is required to provide cost optimization services

3. Sustainability Requirements: Include when project has specific environmental or green building requirements

4. BIM Implementation: Include when Building Information Modeling is required for the project

5. Multiple Stage Services: Include when services are divided into distinct phases with different scope/fees

6. Security Provisions: Include when performance bonds or parent company guarantees are required

7. Statutory Compliance: Include detailed compliance requirements for specific building types (e.g., hospitals, schools)

What schedules should be included in a Construction Management Contract?

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

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3 - Key Personnel: Lists key team members and their roles/responsibilities

4. Schedule 4 - Project Program: Overall project timeline and key milestones

5. Schedule 5 - Project Specific Requirements: Technical specifications and project-specific requirements

6. Schedule 6 - Required Insurance: Detailed insurance requirements and minimum coverage amounts

7. Schedule 7 - Forms and Procedures: Standard forms for reporting, variations, and other procedures

8. Appendix A - Site Information: Site details, surveys, and existing condition information

9. Appendix B - Principal's Requirements: Detailed description of Principal's project requirements

10. Appendix C - Quality Management Plan: Quality assurance and control procedures

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

GenieAI

Document Type

Meeting Minutes

Cost

Free to use

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