Indeed, the contractor`s mission is only to guide the contractors without taking the risk of their non-performance. Third, the parties sometimes tick a box that doesn`t make much sense. One of the tasks is, for example, for the site manager to negotiate with the authorities and service providers. There is a standard form of the trade agreement, published by Standards Australia and intended to be used in conjunction with AS 4916, AS 4917-2003. You can buy a license to use the AS 4917 here. All of the site manager`s obligations in AS 4916 relate to „services.“ The definition of „services“ refers to Appendix Part B, which is intended to describe „services“ in detail. AS 4916 is a reasonably balanced contract when used for the intended purpose, namely traditional construction management. The identification of the „services“ in Schedule, Part B, must be careful. In accordance with AS 4916, the site manager instructs the site manager to direct the construction process on behalf of the contractor. This may include pre-drilling services and/or remedial measures, depending on the completion of The Annex, Part B.

AS 4916 is one of the most frequently used – and also abused – forms of the construction management contract in Australia. This article explains how it works and also identifies areas where users are often wrong. Some contractors (or their project managers) seem to consider that by ticking all the boxes in Schedule, Part B, „not as an agent,“ the result will be that the entire construction risk will be transferred to the site manager, while retaining all the „open book“ benefits of a conventional construction management regime. Nor is it expected that the site manager will contain many of the usual risks imposed on a principal contractor under a lump sum contract. Example: First, if a traditional construction management agreement is provided, the choice between „agent“ and „not as agent“ should normally be defined. In other words, the site manager is always likely to perform the same function in the same way, regardless of the project. There should be no reason to move from one project to another, so there should be no reason for users to choose. The general intention behind a conventional construction management contract is that the site manager, when dealing with third parties (including commercial operators), does so as a contractor`s representative. This means that AS 4916 was first published in 2002. It was developed by a committee made up of a number of industry stakeholders and is therefore a relatively balanced form of construction management agreement, provided it is used as originally planned.

The construction management agreement (or approved version) is used to award contracts with a licensed architect, registered engineer or general contractor for some or all services related to the management of UC construction contracts. The order is not used when the tradesman performs one of the actual design or design work of the project. If you want to use AS 4916 as a traditional construction management agreement, the best approach is this: the charge to be paid to the site manager must be indicated in Part C of the schedule. The fee can be expressed as a lump sum, as a percentage of the value of the project, in terms of rates or combinations. It would be strange if this box was not checked as an agent. If the site manager is not allowed to negotiate with the authorities or service providers „as agents for the contractor,“ it is not clear how the site manager could deal with the authorities or service providers.