Project Management Contract
Date:
Owner:
Project name:
Project number:

This agreement is made this ______ day of ________________, 19____ by and between _____________________________

hereinafter called the Owners, whose address is: ________________________________________________________________________________
and Richard Allan Davis, a Florida Certified General Contractor, Qualifier for Florida Repair Centers, Inc. (www.Florida.cc) hereinafter called the Project Manager, Contractor's License Number CGC1506257, whose office address is 10120 Grove Lane, Cooper City, FL 33328  Office phone: (888) 9 Gaines ville or (352) 363-0701  Email at: RickDavis@Florida.cc
The parties above hereby agree as follows:
The Project Manager agrees to manage and see to completion in an excellent and substantial manner, the construction of a single family residence (herein called the "Project") upon the real property located at ______________________________________________________________________________________

The Project Manager's Roles and Responsibilities are to be as follows:
Pre-Construction Phase

  1.  Review the preliminary and final plans, make comments and suggestions that may improve the project.
  2.  Obtain all necessary permits and handle all interface with the building department (general, grading, electrical, mechanical, plumbing, etc.);
  3.  Provide a complete materials takeoff (bill of materials) for lumber and framing hardware, etc;
  4.  Coordinate the bidding process to secure bids from each major craft;
  5.  Act as the clearing house for information to bidding subs;
  6.  Check up on the references of each subcontractor;
  7.  Develop a critical path time line with completion of the living space targeted for 60 days after issue of permit
  8.  Act as the contractor of record with the lender and building departments;
  9.  Recommend to the Owners the most qualified and reasonably priced subcontractor for each phase of construction based on the bids submitted;
10.  Finalize the contract documents with each sub, making sure everything is "spelled out";
11.  Develop a list of contract addenda covering areas of payment disbursement, safety, workers' compensation, cleanup, and craftsmanship standards.

Construction Phase

Goal:  Make sure something progresses on the job site every working day, weather permitting.
The Project Manager will see to it that the Project is constructed and completed in strict conformance with the plans and specifications and that all laws, ordinances, rules, and regulations of the applicable governmental authorities are adhered to.  Further, he agrees to:

  1.  Be the Owners’ “eyes and ears in the field”;
  2.  Meet with Owners on a regular basis to review progress in person, via email and by phone;
  3.  Coordinate all utilities hookups;
  4.  Coordinate with the geologist and/or soils engineer;
  5.  Coordinate with the grader/excavator and all other subcontractors;
  6.  Supervise day-to-day construction, making sure the Project is built as intended by the Owners and the Designer as per the approved plans;
  7.  Make sure neighbors' property is respected;
  8.  Ensure subs maintain the highest degree of craftsmanship;
  9.  Schedule subs and suppliers in the appropriate sequence;
10.  Review licenses, workers’ comp and liability insurance of each sub — Have a Certificate of Workers’ Comp. sent to Project Manager by their carrier;
11.  Coordinate incidental day labor;
12.  Keep track of change orders;
13.  Verify lumber and materials deliveries to make sure we get what we ordered;
14.  Authorize payment of subs based upon ongoing review of their work;
15.  Obtain lien releases;
16.  Provide on-site problem-solving with subs;
17.  Coordinate with interior designer's installation;
18.  Call for and handle inspections and interface with Building Department;
19.  Make sure the job site is cleaned on a regular basis (Owners to provide manpower or funds for labor);
20.  Insist that all workers maintain the highest safety standards;
21.  Pass along to the Owners any discounts the Project Manager is entitled to as a General Contractor without charging any markups.



Project Management Contract
The Owner's Roles and Responsibilities are to be as follows:

  1.  Finalize negotiations with a lender and secure the construction funding;
NOTE: We are approved by several of the biggest construction lenders in the nation and can
assist you in obtaining a low cost single closing mortgage.
  2.  Pay for the General Building Permit, the Project Manager will assist in completing the paperwork.  All other permits are to be paid for and taken out by each respective subcontractor;
  3.  All construction expenses are to be borne by the Owners.  The Project Manager is not to be held liable for any unpaid bills;
  4.  Sign all contracts with each subcontractor upon the recommendations of the Project Manager;
  5.  Clear through Project Manager any work or changes on the Project;
  6.  Maintain an account for incidental purchases (petty cash) — Project Manager will keep track of these expenses;
  7.  Provide a job site phone upon commencement of rough grading (not needed when using Modular Construction);
  8.  Provide a temporary construction field office available to the Project Manager upon commencement of rough grading (not needed when using Modular Construction)
  9.  Accept the liability for theft or destruction of building materials;
10.  Provide ALL the appropriate insurances (public liability, course of construction, fire, theft, etc.);
11.  Provide a chain-link fence around the Project area if desired by owner;
12.  File Notice of Completion within 5 days of substantial completion of the Project.
Fee Schedule

In consideration for the above services rendered by the Project Manager, the Owners agree to pay the Project Manager a retainer and base fee of 12% of the cost of construction.
The Base Fee is to be computed based on the total hard construction costs, including permits, appliances and fixtures,sub contractors, etc.  Any soft costs, such as furniture and drapery costs, are not to be considered in determining the Base Fee.

The Base Fee is to be broken down into installments as follows:
*An initial nonrefundable retainer of $1,500.00 to be paid to cover the pre-construction services.
(This $1,500.00 fee is waived for Apex home Modular projects)
*A monthly installment of twelve percent (12%) of the construction costs (the Base fee) to be paid on the 1st of each month.

We hereby execute this Agreement on ____________________
Owner (s):__________________________________________
Owner (s):__________________________________________
     Project Manager: ____________________________________




Florida Certified
Contractors, Inc.
www.Florida.cc    or    www.Gainesville.cc
Florida Certified Contractors, Inc.

South Florida Office - Ft. Lauderdale
Office - (954) 588-8563  Fax - (954) 680-9208
Email:  Info@Florida.cc

North Florida Office - Gainesville
Office - (352) 363-0701  Fax - (352) 277-0501
Email: Info@Gainesville.cc
The Project Management concept is nothing new, large commercial construction projects are often built using this method. We have worked in dozens of commercial projects including The White House, National Airport, the DC Police Headquarters and more.

There are two common methods of construction in commercial building projects. First is the bid and build concept that most people are familiar with wherein you get bids from several construction contractors. You then choose the lowest bidder from those that have a verifiable license, insurance, referrals and track record.

The second method is the “Project Management Method” wherein the General Contractor manages the project for a fee. This method reduces the amount of profit and overhead that a builder must add to his estimate and will therefore reduce the amount that you will spend on your project. Most of the time saving you thousands – even tens of thousands of dollars!

Here are two samples that saved our clients big money on their recent projects.

Example No.#1

First was a large addition to an existing home. The owner had invited us to bid on a 900 foot addition that he had several other contractors’ bids on. Our bid came in at $157,500. The other three bids were $155,000, $180,000 and $202,500.

Instead we went ahead with the Project Management contract and finished the home for $124,700 which broke down as follows:

Cost of Construction:       $110,000
Project Mgt fee                $  14,700    Calculated at 12% of $110,000 plus $1,500
Total to build    $124,700

Savings over lowest bid $30,300

Example No.#2

This client was about to buy a modular home from a local distributor for $140,000.  The distributor would be using his license to pull the permits but the owner was going to have to set and finish the house by themselves – not an easy task for a non builder.

Instead, we contracted to provide 100% of the project from start to finish, permits, modular home, site prep, foundation, site utilities, well, septic, driveway, permits, setting of home, finish crew for roof, drywall, electric, plumbing, air conditioning, cable, phone, outside porch and sidewalks, landscaping and the customizing of several interior changes to the kitchen and baths and the addition of a functional fireplace.

We were able to provide wholesale pricing on the home and including our 12% management fee the owners paid only $123,200 for their home for a savings of $16,800.

This money was enough to cover the cost of the electrician, plumber, well, septic, air-conditioning system, painting, drywall and more. In other words we not only saved the client but we managed the project and provided a finished house with the money that would have other wise gone into someone else’s pocket.

The system works because we pass along the substantial savings we receive from lower overhead, lower insurance and lower risk factors that are normally built into the old bid and build system.

For more examples call us and we will send you a list of happy customers who have saved tens of thousands of dollars.

If you are handy and want to do certain parts of the construction yourself (non-licensed trade items like painting, drywall, landscaping, etc...) we can also save you additional monies.

Call today, ask for Richard Davis and let us help make your dreams come true.

Below is the actual contract that we use - simple and easy to understand.