Construction Management Contracts

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Under a construction management contract, in addition to engaging a construction manager, the homeowner is also required to contract directly with a multitude of trade contractors (e.g. plumbers, carpenters, electricians, etc.) and is ultimately responsible for their performance. A normal domestic building contract sees the homeowner sign a single contract with a builder who then contracts with trades and supervises their work on the homeowner’s behalf.

A breakdown in the construction management contract or one of the trade contracts may have a collateral impact on other contracts, entered by the homeowner, potentially leaving the homeowner exposed to delays and even legal action. In addition, homeowners have less QBCC insurance protection when a construction management contract is used, especially for non-completion.

For more details on the differences, risks and responsibilities for contractors associated with construction management contracts you should read the Construction Management Contract Information Statement available on the QBCC website.