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THIS CONSTRUCTION PROJECT MANAGEMENT AGREEMENT is entered into between Parcel Owner (hereinafter referred as the Owner), and CONSTRUCTION MANAGEMENT GROUP OF WASHINGTON LLC   (hereinafter referred as the Manager). Owner understands that this agreement is for off-site project management and administrative services by a licensed, bonded and insured General Contractor working solely in an administrative capacity and not as an onsite manager.

 

RECITALS:

WHEREAS, Owner intends to construct a custom building based on the uploading of attached floor plan (herein after referred as the Project) and desires to engage Manager to render general administrative management with respect thereto; and

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• Contractor Management: Job Budgeting and Scheduling Contractors & Deliveries.

• Material Procurement & Logistics: Ordering materials, coordinating deliveries, and managing supply chain.

• Problem-Solving: Handling unforeseen administrative issues such as product and contractor delays, budget or design issues/changes.

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WHEREAS, Manager has expertise in connection with the management of construction projects and desires to manage the Project;

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NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, the parties agree as follows:

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MANAGEMENT OF PROJECT. In connection with the uploaded floor plan, Owner hereby authorizes Manager, as an Independent Contractor licensed by the State of Washington, and Manager does hereby agree to undertake all administrative management obligations and services with respect to this Agreement.

 

Owner hereby engages Manager to manage Project on behalf of Owner in accordance with the following:

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1. Manager shall provide Owner with the planning, budgeting, scheduling, coordinating and administrative supervising necessary for the timely execution of the Project by all workers, suppliers of material, contractors, and others (collectively, ‘Contractors’) supplying materials for services to the Project.  However, this agreement DOES NOT include the management of actual contractor work being done.  That is the sole responsibility of the Owner.  We may offer advice, at our discretion.

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2. Owner will agree to all design requirements and/or any changes requested on the Project.

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3. Owner will agree on all budgets and/or additions or changes to the budget as the Project progresses.  Manager will use the best effort to obtain and verify such estimate but does not warrant that the actual Project costs shall be exactly as stated.  However, Owner will be notified and approve the costs before work will commence.

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4. Manager shall take reasonable steps on behalf of Owner to ensure the administrative work, not onsite management of any kind, is completed in a good and workmanlike manner in accordance with the design specifications and cost estimate of Project.  However, the budget is an estimation and not guaranteed.

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5. The detail of services to be provided by Manager for Owner are as set forth in Schedule “A” attached.

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6. The detail of obligation to be provided by Owner in order for Manager to complete their duties are set forth in Schedule “B”.

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7. In performing the duties under this Agreement, Manager shall be the limited agent of Owner for the purpose of obtaining, reviewing and discussing with Owner all quotes and bids by Contractors. Contracts, purchase orders and similar documents for the Project shall be in the name of Owner and signed by Owner. All agreements with contractors, suppliers, workers for the purpose of performing work or service to the Project is entered into between the Owner and contractors and suppliers, not the Manager.

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8. Nothing in this Agreement shall prevent or restrict Manager from acting as a Contractor for the purpose of performing work or service to the Project, provided such shall be fully disclosed to Owner.

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9. Owner hereby indemnifies and holds harmless Manager and Manager’s employees from all debts, claims and liabilities incurred in the non-performance of functions under any agreements between Owner and contractors and workers.

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10. Manager’s fee shall be as outlined below: In addition to such fee, Owner shall pay 100% of all taxes, including, but not limited to, Goods and Services Tax.

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​MANAGER FEE COMPENSATION. Owner agrees to pay Manager a management fee in the sum of $25,000.00USD. Owner also agrees to pay 100% of all costs related to the build of the home.  Owner understands that the pay structure for this custom home build project is a Build Cost + Flat Fee Management Program of $25,000.00. The payment schedule for the management fee consists of a $1,000.00 start card deposit on the date of contract signing.  It is ONLY REFUNDABLE IF OWNER CANNOT GET A BUILDING PERMIT.  This will hold a spot on Managers schedule.  The 1st non-refundable management fee payment of $6,000.00 must be paid before Manager starts on permit or budget documents or any work is done.  After this payment is made, Manager will start gathering bids and putting together Owner’s budget sheet, permit paperwork, gathering contractor bids and working on the build schedule.  The 2nd non-refundable management fee payment of $6,000.00 must be paid before any foundation work starts. The 3rd non-refundable management fee payment of $6,000.00 must be paid after Owner receives the framing inspection approval and then Manager will start assisting Owner in ordering finishes that Owner chooses.  If the owner chooses finishes from Managers showroom, owner understands that manager may receive a commission from the suppliers presented.  However, Owner is free to purchase home finishes from any location they choose. Final payment for the remaining balance of the non-refundable management fee is due once Owner does any type of sweat equity, receives the final inspection approval, occupies the home or sells the home.  

 

CONTRACTOR AND SUPPLIER COMPENSATION: Owner agrees to pay for all supplies and contractors related to and used on the build of the home upon request from Manager within 24 hours of Managers request for it to be done.

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TERM. This Contract will terminate automatically upon the county’s approval of the final inspection or temporary occupancy, the home is occupied or sold.

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WORKING HOURS. Time is of the essence for this Agreement. The parties acknowledge that the Manager will devote the time necessary to fulfill Managers obligations with a projected Project completion date from foundation to finished of 210 days after the foundation pour.  If the Project runs shorter or longer, Manager will advise and consult with Owner as to the reason why and work to rectify the situation within Managers scope of responsibility. This is a PROJECTED date and extending this date does not nullify the agreement; a new projected and reasonable completion date will be assigned at that time.

 

INDEMNITY. To the fullest extent permitted by law, Owner shall indemnify, defend, and hold harmless Manager and Manager’s agents and employees from and against all claims, damages, losses and expenses, including, but not limited to, attorneys’ fees arising out of or resulting from the performance or non-performance of any contractual obligations with contractors hired by Owner or suppliers and any agencies involved in the Project.

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REMEDIES. In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any term or condition of this Agreement laid out in Schedule A (for Manager) or Schedule B (for Owner), the other party may terminate the Agreement by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have 10 days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Agreement.  If the Owner decides that they no longer wish to work with the Manager, the management fee is due in full, at the discretion of Manager.  This is due to the fact that most work on the project is done by Manager at the beginning and middle of the project.  If both parties agree to terminate the agreement, then the contract may be terminated upon written agreement and the Manager may, at Managers discretion, revoke their right to the rest of the management fee payment.  

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FORCE MAJEURE. If performance of this Agreement or any obligation under this Agreement is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, plague, epidemic, pandemic, outbreaks of infectious disease or any other public health crisis, including quarantine or other employee restrictions, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lock-outs, work stoppages, or other labor disputes, or supplier failures. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.

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ARBITRATION. Any controversies or disputes arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association. The parties shall select a mutually acceptable arbitrator knowledgeable about issues relating to the subject matter of this Agreement. In the event the parties are unable to agree to such a selection, each party will select an arbitrator and the two arbitrators in turn shall select a third arbitrator, all three of whom shall preside jointly over the matter. The arbitration shall take place at a location that is reasonably centrally located between the parties, or otherwise mutually agreed upon by the parties. All documents, materials, and information in the possession of each party that are in any way relevant to the dispute shall be made available to the other party for review and copying no later than 30 days after the notice of arbitration is served. The arbitrator(s) shall not have the authority to modify any provision of this Agreement or to award punitive damages. The arbitrator(s) shall have the power to issue mandatory orders and restraint orders in connection with the arbitration. The decision rendered by the arbitrator(s) shall be final and binding on the parties, and judgment may be entered in conformity with the decision in any court having jurisdiction. The agreement to arbitration shall be specifically enforceable under the prevailing arbitration law. During the continuance of any arbitration proceeding, the parties shall continue to perform their respective obligations under this Agreement.

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GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of Washington.

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WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

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NOTICE. Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one party may have furnished to the other in writing.

 

SEVERABILITY. If any provision of this Agreement will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.

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ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties, and there are no other promises or conditions in any other agreement whether oral or written concerning the subject matter of this Agreement. This Agreement supersedes any prior written or oral agreements between the parties.  Change orders may be issued as the Project progresses and all change orders will be signed by the Owner.

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AMENDMENT. This Agreement may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.

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ASSIGNMENT. Either party may assign or transfer this Agreement without the prior written consent of the non-assigning party.

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BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of Owner and Owner's successors or assigns and shall be binding upon and inure to the benefit of Manager and Manager's heirs, personal representatives, successors or permitted assigned. The parties have hereunto set their hands the day and year first above written.

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ATTORNEYS' FEE. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled.

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Schedule “A”

Manager's duties cover the following:

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1. Consult and advise Owner on administrative aspects of the Project.

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2. Review agreements which Owner may desire to enter into with respect to the Project.

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3. Preparation of permit paperwork.

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4. Preparation of preliminary build budget, build schedule, bid requests in connection with the selection of contractors and materials.

 

5.  Request bids from contractors; 2-3 contractors per trade.

 

6.  Provide Owner with the contractor bids for approval to sign, in which they can sign or not sign.  Choosing which contractor to use is 100% Owners prerogative.

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7. Submit to Owner invoices from contractors and suppliers to issue payments for contractors, suppliers and all expenses related to the Project .

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8. Arrange for material and finishes deliveries.

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9. Schedule contractors to perform the labor work.  ​​

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10.  Schedule the appropriate contractors, suppliers and inspectors for routine inspections.​

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Schedule “B”

Owners duties shall include, without limitation, the following:

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1. Review and approve or deny within 24 hours of receiving signature requests from Manager all agreements brought forth by Manager with respect to the Project, namely but not limited to, subcontractor agreements, design, materials and product purchases;

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2. Review and approve or deny within 24 hours of receiving approval requests all budgets, scheduling, cost estimates, bid packages in connection with the selection of contractors, materials, and issuance of permits brought forth by Manager to ensure their accuracy.

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3. Issue payments for contractors, subcontractors, suppliers and all other expenses related to the Project when due;

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4. Take all necessary safety precautions including job security and hold appropriate insurance such as Builders Risk Insurance.

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5. Walkthroughs - Owner will have walk-throughs with the contractors to inspect contractors work and job progress. ​ This will include, but not limited to, measuring of the doors and window openings and ensuring that the job is done according to the plan.

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6. Responsible for meeting dirt work people to dig utility trenches as well as meet with the plumber, electrician, Public Works department so that Owners home is connected to a septic system, water, power, gas, propane, telephone, internet, etc.

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7. Jobsite Cleanup - The Owner is responsible for cleaning up construction debris and garbage left on the jobsite in order to provide a proper work environment for contractors. If Owner decides to hire a contractor for this task, that is up to the Owner discretion.

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8. Make sure that home is weather ready and dry enough to enclose with insulation and drywall. This requires using a moisture control tool.

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9. Handle legal or other disputes that arise with contractors or suppliers. We may assist with documentation we may have, but we are not responsible for resolving or getting involved in disputes between Owner and any contractors or suppliers.

 

10. Ensure that the home is accessible for contractors and delivery trucks. Any delays or additional expenses caused by driveway or accessibility issues need to be handled immediately by the Owner.

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11. All other duties and responsibilities that may come up that are not listed in the Managers duties under Schedule A.

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Owner understands that this agreement is for off-site project management and administrative services.  However, Construction Management Group of Washington LLC reserves the right to provide licensed contractor bids and, if accepted by Owner, will be reimbursed for any on-site work done.  This may include, but is not limited to, framing, siding, roofing, floor installation, window installation, finish work, clean-up, etc.

 

Owner may purchase a build warranty directly from a 3rd party, but Manager does not provide one since Owner has the right, under this contract, to choose the contractors, suppliers and materials that will be used on their home build.

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This is the entire agreement and this is for administrative off-site project management, not as a general contractor, for a custom home build where the Owner is working as an owner/builder.