New Mexico Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project

• Category: Construction - Contractors
• State: Multi-State
• Control #: US-0056BG
• Format: Word; Rich Text

Description

A Construction Management Agreement is a contract drafted and signed by a construction foreman and the property owner. It allows each to establish roles and responsibilities, deadlines, wages and the project specifics. The New Mexico Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project is a legally binding document that outlines the responsibilities, rights, and obligations of both the owner and the construction manager throughout the construction project. This agreement serves as a framework for effective communication, coordination, and collaboration between the two parties involved. The key elements included in this agreement are as follows: 1. Parties: The agreement clearly identifies the owner, who is usually the individual or entity responsible for initiating and financing the construction project, and the construction manager, who is responsible for overseeing and managing the construction process. 2. Scope of Services: This section details the specific services that the construction manager will provide, such as preparing cost estimates, procuring subcontractors, scheduling, coordinating inspections, and ensuring compliance with local regulations and building codes. 3. Project Schedule: The agreement establishes a detailed timeline for the construction project, including key milestones, start and completion dates, and any penalty clauses for delays. 4. Compensation and Payment: This section outlines the financial arrangements between the owner and the construction manager. It stipulates how the construction manager will be compensated, whether it's a fixed fee, a percentage of the project's cost, or a combination of both. It also includes provisions for reimbursing the construction manager for approved expenses incurred during the project. 5. Change Orders: This section addresses how changes to the original plans or specifications will be handled, including a detailed process for documenting and approving change orders and any associated adjustments in cost or timeline. 6. Dispute Resolution: In case of any disputes or disagreements, this agreement provides a mechanism for resolving conflicts through mediation, arbitration, or litigation, depending on the preferences of the parties involved. 7. Indemnification and Insurance: The agreement includes provisions to ensure that both the owner and the construction manager carry appropriate liability insurance coverage and indemnify each other against any claims, damages, or losses arising from the project. Types of New Mexico Agreements between Owner and Construction Manager for Services in Overseeing a Construction Project: 1. Lump-Sum Agreement: This type of agreement establishes a fixed price for the construction manager's services, regardless of any changes or unforeseen circumstances that may arise during the project. 2. Cost-plus-Fee Agreement: Under this agreement, the construction manager is reimbursed for the actual costs incurred, including direct labor, materials, and equipment, plus a predetermined fee or percentage for their services. 3. Guaranteed Maximum Price (GMP) Agreement: This type of agreement sets a maximum price cap for the construction manager's services, allowing the owner to have cost certainty. If the actual costs are below the agreed-upon maximum price, the owner benefits from the savings. If costs exceed the agreed-upon price, the construction manager bears the additional expenses. In summary, the New Mexico Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project is a comprehensive document that outlines the roles, responsibilities, and compensation terms for the construction manager. It ensures a clear understanding between the owner and the construction manager, leading to a more efficient and successful construction project.

The New Mexico Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project is a legally binding document that outlines the responsibilities, rights, and obligations of both the owner and the construction manager throughout the construction project. This agreement serves as a framework for effective communication, coordination, and collaboration between the two parties involved. The key elements included in this agreement are as follows: 1. Parties: The agreement clearly identifies the owner, who is usually the individual or entity responsible for initiating and financing the construction project, and the construction manager, who is responsible for overseeing and managing the construction process. 2. Scope of Services: This section details the specific services that the construction manager will provide, such as preparing cost estimates, procuring subcontractors, scheduling, coordinating inspections, and ensuring compliance with local regulations and building codes. 3. Project Schedule: The agreement establishes a detailed timeline for the construction project, including key milestones, start and completion dates, and any penalty clauses for delays. 4. Compensation and Payment: This section outlines the financial arrangements between the owner and the construction manager. It stipulates how the construction manager will be compensated, whether it's a fixed fee, a percentage of the project's cost, or a combination of both. It also includes provisions for reimbursing the construction manager for approved expenses incurred during the project. 5. Change Orders: This section addresses how changes to the original plans or specifications will be handled, including a detailed process for documenting and approving change orders and any associated adjustments in cost or timeline. 6. Dispute Resolution: In case of any disputes or disagreements, this agreement provides a mechanism for resolving conflicts through mediation, arbitration, or litigation, depending on the preferences of the parties involved. 7. Indemnification and Insurance: The agreement includes provisions to ensure that both the owner and the construction manager carry appropriate liability insurance coverage and indemnify each other against any claims, damages, or losses arising from the project. Types of New Mexico Agreements between Owner and Construction Manager for Services in Overseeing a Construction Project: 1. Lump-Sum Agreement: This type of agreement establishes a fixed price for the construction manager's services, regardless of any changes or unforeseen circumstances that may arise during the project. 2. Cost-plus-Fee Agreement: Under this agreement, the construction manager is reimbursed for the actual costs incurred, including direct labor, materials, and equipment, plus a predetermined fee or percentage for their services. 3. Guaranteed Maximum Price (GMP) Agreement: This type of agreement sets a maximum price cap for the construction manager's services, allowing the owner to have cost certainty. If the actual costs are below the agreed-upon maximum price, the owner benefits from the savings. If costs exceed the agreed-upon price, the construction manager bears the additional expenses. In summary, the New Mexico Agreement between Owner and Construction Manager for Services in Overseeing a Construction Project is a comprehensive document that outlines the roles, responsibilities, and compensation terms for the construction manager. It ensures a clear understanding between the owner and the construction manager, leading to a more efficient and successful construction project.