Construction/Project Management Fee Clause Samples
The Construction/Project Management Fee clause defines the compensation structure for the party responsible for overseeing and managing a construction project. Typically, this clause outlines whether the fee is a fixed amount, a percentage of total project costs, or based on another agreed-upon formula, and may specify payment milestones or conditions for adjustment. Its core function is to ensure transparency and agreement on how the project manager is paid, thereby preventing disputes over compensation and clarifying financial expectations for both parties.
Construction/Project Management Fee. During the term of the Agreement, in consideration for the General Partner's or its designated Affiliate's performance of construction or project management services that the General Partner or its designated Affiliate, after consultation with the Advisory Committee, elects to perform (rather than causing the Partnership to retain a separate construction or project manager), with respect to any Investment, the Partnership shall pay to the General Partner or its designated Affiliate an amount (the "Construction/Project Management Fee") equal to 7.5% of the hard costs for the construction project ("Construction Project") whether for retail, commercial or residential space. If the Construction/Project Management Fee is not to be a fixed fee but rather is to be based on the Construction Costs of a Construction Project, then, "Construction Costs" shall mean the total construction costs to the Partnership of all elements of the Construction Project managed by the General Partner or its designated Affiliate, including, without limitation, all architect's and engineering fees, and all amounts payable to contractors and subcontractors with respect to the Construction Project; provided, however, that Construction Costs shall not include the Construction/Project Management Fee.