What is a construction management contract?

A construction management contract is a procurement method where a construction manager is appointed to manage the project on behalf of the client, coordinating multiple trade contractors rather than acting as a single main contractor.

How the Contract Structure Works

• Client appoints a construction manager in an advisory or agency role
• Individual trade packages are contracted directly by the client
• Construction manager coordinates all trades and manages the program

Advantages for Clients

• Greater transparency and control over project costs
• Flexibility to make design changes during construction
• Direct relationships with specialist trade contractors

Risks to Consider

• Client bears more contractual and financial risk than traditional contracts
• Requires active client involvement in contract management
• Final cost less certain compared to a fixed-price main contract

Construction management contracts suit sophisticated clients seeking greater control and transparency over complex projects, but require strong in-house expertise or specialist advisory support to manage the associated risks effectively.