Australian Standard Project Management Agreement

Some owners (or their project managers) seem to think that by checking all the boxes in the Annex, Part B, “not as a representative”, this will have the effect of transferring the entire construction risk to the site manager, while preserving all the benefits of the traditional construction management agreement. AS 4916 is one of the most frequently used – and abused – forms of construction management contracts in Australia. This article explains how it works and also identifies areas in which users often get it wrong. First, in areas where a traditional construction management agreement is provided, the choice between “agent” and “not as an agent” in general should be defined. In other words, the site manager will probably always perform the same function in the same way, regardless of the project in question. There should be no reason for this to change between projects and, therefore, no reason for users to have to choose. The general intention behind a traditional construction management contract is that the site manager, when dealing with third parties (including commercial contractors), does so as a representative of the contracting authority. This means that this document prepared by the Council of Australia can be considered as an alternative to the ABIC MW1 and AS contracts. It is suitable for design and design projects as well as Construct only contracts. There is a standard form of commercial agreement published by Standard Australia and intended for use in conjunction with AS 4916, AS 4917-2003. Here you can purchase a license to use AS 4917.

This Agreement shall apply to use where there is no main contractor and the owner pays the manager a fee for its services. The agreement is issued by the Royal Institute of Architects (Victorian Chapter). In the case of a traditional directorate, all three boxes would be checked “as an agent”. It follows that, on behalf of the client, the contracting authority would have to deal with commercial contractors and suppliers, while having to fulfil its fiduciary obligations vis-à-vis the client. AS 4916 is a reasonably balanced contract when used for its purpose, namely the traditional management of works. Caution should be exercised with regard to the identification of the `services` listed in Part B of the Annex. Conversely, if the intention is not a traditional management of the works and you intend that the site manager will take more responsibility for the risk that would normally be the case and that the person in charge of the works is directly responsible for the execution of the works and the execution of the project: if you are a client or a project manager who wishes to set up a modified form of work management agreement, do not think that the simple check mark of the boxes in Part B of the annex is enough to go around. Indeed, this type of approach may lead the contracting authority to take a significant unnecessary and unwanted additional risk. Australian construction contracts regulate the behaviour of the parties to a construction contract and how the project manager and contract manager manage the relationship between the parties. [1] There are several types of popular construction contracts that are currently in use in Australia…