As a professional, I am here to explain what is a development management agreement. A Development Management Agreement (DMA) is a contract between a property owner and a developer. It outlines the terms and conditions of how a development project will be managed, including project planning, financing, development, construction, and completion.
The DMA is designed to ensure successful project management and delivery by defining roles and responsibilities of each party. It sets out the expectations of the property owner and developer, detailing the delivery of the project, finance, and construction management.
In a DMA, the property owner is responsible for providing the land, permits, and approvals needed for construction. The developer, on the other hand, is responsible for developing the project according to the agreed-upon plans and timeline.
The DMA typically includes a detailed project schedule with milestones, budgets, and cost estimates. It outlines the developer`s and property owner`s obligations in terms of funding and executing the project plan.
One essential aspect of the DMA is the scope of work. This document outlines the overall project and provides a scope of work that outlines specific tasks, timelines, and cost estimates for each project phase. The scope of work also includes a description of the deliverables, milestones, and payment terms.
The DMA also includes risk management elements, outlining the procedures for mitigating risks, such as weather, construction issues, and project delays. The agreement will also contain various termination rights in case of default.
In conclusion, the DMA is a vital tool for developers and property owners to ensure successful project management and delivery. It outlines the expectations and responsibilities of each party, including the project scope, financing, and construction management. With the DMA in place, both parties can work together to deliver a successful project on time and within budget.