What is a construction team agreement and why do you need it?

A construction team agreement formalizes the collaboration between the parties designing a construction project together — usually the client, the architect, and the contractor. By involving the contractor as early as the design phase, you benefit from their knowledge of costs and feasibility. The agreement governs tasks, consultation, pricing, liability, disputes, and termination.

During the design phase of a construction project, it pays to collaborate in a construction team and involve the contractor early on; he is the expert regarding costs and feasibility. To this end, you make sound agreements in a construction team agreement.

What is a construction team?

In a construction team, various parties collaborate to arrive at a building design. It often consists of a client, an architect, and a contractor, sometimes supplemented by additional expertise (for example, a structural engineer or mechanical and electrical consultant). Each party has its own knowledge and responsibilities, but the starting point is multidisciplinary collaboration in which the participants consult with each other. Clear agreements regarding tasks and the consultation structure are therefore indispensable.

The special role of the contractor

The contractor is involved in the design early on and contributes ideas based on practical experience. However, this does not automatically mean that he will be awarded the execution contract. It is often agreed that the contractor may submit the first quotation after the design phase, or agreements regarding the price calculation are made in advance. In practice, the execution contract is often awarded to him nonetheless if his proposal is reasonable—precisely because his involvement allows him to submit a more accurate quotation than an outsider.

What does a construction team agreement regulate?

You record the agreements in a construction team agreement. This covers, among other things:

• the composition of the construction team and the tasks per participant;
• leading the construction team (often at the client's) and convening consultations;
• agreements on pricing;
• liability provisions;
• a dispute resolution mechanism;
• an arrangement for termination of the agreement.

In practice, a model agreement is often used as a basis. Such a model is typically concise and leaves much room for interpretation: the grounds for termination and price determinations are often general, because every construction project and every construction team is different.

Why customization is often necessary

Because a standard agreement leaves much open, legal guidance when completing it is advisable. If your agreements deviate significantly from the model, if additional parties are involved in the construction team, or if you wish to pursue a different working method, a customized construction team agreement is recommended. This prevents ambiguity regarding tasks, pricing, and liability.

Frequently Asked Questions

Does the contractor in a construction team automatically get the contract?

Not automatically. Often, the contractor is allowed to submit the first quotation after the design phase; with a reasonable proposal, the execution is usually awarded to him, but you stipulate this in the agreement.

Is a model agreement sufficient?

As a basis, often yes, but templates leave much open regarding pricing and termination. Customization is advisable for deviating agreements or additional parties.

Who is in charge of a construction team?

Usually the client, who also convenes the consultation. You can arrange this differently in the agreement if the situation requires it.

Have a custom construction team agreement drawn up

The legal experts at MKB Juristen draft a construction team agreement that suits your project and covers risks regarding pricing and liability. View our expertise in real estate law or schedule an intake meeting .