Associated General Contractors of America

Standard Construction Management Agreement Clarifies Costs, Fees in CM Agency Contracts

The ConsensusDocs Coalition is publishing a new Construction Management Agency standard agreement. The ConsensusDocs 830 Agreement Between Owner and Construction Manager (CM Provides General Conditions) and related exhibits will replace the current ConsensusDocs 801 Construction Management Agreement.

The new agreement was revised based upon industry feedback and the Drafting Council’s evaluation that providing greater clarity in defining costs, fees and profit would avoid potential claims over these issues on projects utilizing CM Agency. In surveying current practices, the Council found that the areas of defining fees, profit and overhead on general conditions items vary greatly. Consequently, the agreement structure was refined and an optional general conditions exhibit was provided. The Council will be publishing an alternative version of this agreement in which the CM does not provide general conditions.

“Current standard CM Agency contracts do not do a good job of defining which costs fall into a particular bucket, which inevitably leads to confusion when it comes time for payment. This new document is the first standard Agency document that provides clarity, which will be a helpful contractual tool for Owners and CMs alike,” comments Melissa Beutler, Vice-Chair of the ConsensusDocs Drafting Council.

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