Project management can mean many different things to many people however it is most likely not to be a "construction contract" in its purest sense.
In effect a project management contract can be very similar to a construction management contract except the Project Manager ("PM") forms an additional layer in the project delivery process. The PM usually manages the entire project from inception to completion; engaging design consultants and contractors at various times as required.
Skills provided by the PM include detailed knowledge of the development process, design, authority approvals and construction. The PM will advise the client regarding the most appropriate form of construction contract to use for the type of project unless the intention is that the PM is to act as the construction manager also.
A client will engage a PM where they do not have the skills and/or time to dedicate to a project.
There are different ways to engage a PM. This could include a percentage fee for service, hourly rates or on a set fee basis.If the PM is also the construction manager then the PM's contract must be constructed to reflect the various scopes of work that the PM is required to do.
Selection of an appropriate PM is critical to the success of a project, particularly for projects with specialised requirements.
For more information on Project Management Contracts, please visit the LEFTA Website.
