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Management contracting meaning

What does Management contracting mean?
Management contracting is a procurement route in which the employer appoints a management contractor to manage and coordinate the construction, while works are carried out by trade contractors contracted to the management contractor under separate packages. The management contractor typically carries out little or no construction work itself. It is responsible to the employer for delivery of the project, including the performance of the trade contractors, programme coordination and integration of packages, usually on a fee‑plus‑cost basis. The term is a descriptive industry expression rather than a statutory or case law definition, but it is recognised in standard forms such as the JCT Management Building Contract and NEC management contract option. Features include: early start through phased procurement; flexible packaging; lower price certainty until later in the programme; and greater cost risk for the employer than under lump sum or design and build. It provides single‑point responsibility for interfaces and may pass obligations down back‑to‑back. Usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland, subject to the chosen standard form and public procurement rules. Distinct from construction management, where the employer holds the trade contracts and the construction manager acts as agent.
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View the related Checklists about Management contracting

CHECKLISTS
B2B product safety and liability contracting: UK drafting checklist—standards, warranties/indemnities, insurance, audits, data retention, recalls, governing law/jurisdiction, and post‑Brexit EU issues

This checklist This checklist highlights the principal issues to address when preparing contractual terms for business to business agreements on product safety and liability. See Practice Note: Product liability risk management for producers for guidance on controlling risk ahead of new supply arrangements, including carrying out appropriate due diligence on other relevant businesses in the supply chain. Identify all applicable laws (eg Sale of Goods Act 1979, Sale and Supply of Goods Act 1994, Consumer Protection Act 1987, General Product Safety Regulations 2005, SI 2005/1803, Consumer Rights Act 2015 and Digital Markets, Competition and Consumers Act 2024), as well as any standards and codes of practice that govern the products. Take into account specific legislation for the manufacture, import and sale of particular goods such as fireworks, cosmetics, toys, pharmaceuticals and medical devices, personal protective equipment (PPE), gas appliances, food and animal feed, and automotive. See Practice Notes: Consumer protection for defective or dangerous products—legal bases, Product liability and defective products and General Product Safety Regulations...

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CHECKLISTS
Scottish commercial leases: practical checklist for negotiating repair and dilapidations provisions (FRI, latent defects, schedules of condition, common parts, insurance/rei interitus, consents, inspection rights and enforcement)

Repair under the common law Under the common law, a landlord, relative to a tenant, bears notably heavy duties regarding upkeep and repair of the leased premises, see Practice Note: Repair clauses in commercial leases in Scotland—Repair under the common law. Within commercial leasing, landlords will almost invariably aim to exclude all such common law repairing liabilities for the demised premises, though not for common areas in multi-let buildings; see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. Consequently, tenants usually shoulder substantial repair commitments. The prevalent model is the full repairing and insuring (FRI) lease, under which the tenant assumes responsibility for repairs of every kind save for damage arising from insured risks; see Practice Note: Repair clauses in commercial leases in Scotland—Contracting out of the common law—the full repairing and insuring (FRI) Lease and The modern commercial lease: Stair Memorial Encyclopaedia [466]...

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CHECKLISTS
Negotiating and drafting manufacturing agreements with design licences: practitioner checklist of key IP, commercial, quality control, pricing and boilerplate terms, with heads of terms guidance

How to use this Checklist This Checklist flags typical issues that arise when negotiating a manufacturing agreement and a design licence, helping you focus on key points at each stage. For further information on the licensing of designs, consult the materials below and see the following Practice Notes: Introduction to designs UK registered and unregistered designs Licensing intellectual property rights For standalone design licences, consult Precedents: Design licence—pro-licensor and Design licence—pro-licensee. See also: Licence of designs—checklist. For character merchandising arrangements, refer to Precedents: Character merchandising agreement—pro-licensor and Character merchandising agreement—pro-licensee. Where suitable, this Checklist may serve as the basis for a brief, non-binding heads of terms. For guidance on how to do this, see Precedent: Heads of terms—commercial contracts. Checklist schedule for proposed manufacturing agreement and design licence The following notes apply to the key commercial considerations identified and outlined herein. Notes Parties Parties: verify each party’s legal status and whether any third parties...

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FLOWCHARTS
DMAIC efficiency improvement for legal departments and law firms: workflow and supporting precedents

Does the business maintain a due diligence policy that covers every party to a commercial relationship, including the company’s supply chain, agents, joint ventures, intermediaries, or any comparable or similar arrangement? Has this policy been rolled out and properly enforced in all of the markets in which the company trades and operates? See Precedent: Anti‑bribery and corruption policy The company must know who it is engaging with to carry out an effective risk assessment. It should use a due diligence information form that the contracting party completes and signs, so the due diligence information supplied can be reviewed and assessed by the company...

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NEWS
PI and Clinical Negligence update: CPR PD 179–180 reforms, key EWHC rulings (police liability, hearsay, Covid-19), and OIC/MedCo data (England and Wales) — 13 February 2025

PI & Clinical Negligence weekly highlights—13 February 2025 In this issue: CPR updates Public authorities and the state Clinical negligence Employer’s liability Other PI and Clinical negligence news New content LexTalk®PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts Useful information CPR updates 179th Practice Direction update and pre-action protocol update—in force 22 January 2025 and 6 April 2025 The 179th Practice Direction (PD) update takes effect on 6 April 2025. The Master of the Rolls and the Courts Minister have signed the Practice Direction Update, which sets out a series of amendments in support of the Civil Procedure (Amendment) Rules 2025, SI 2025/106...

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NEWS
UK tax weekly highlights—VAT fraud deregistration, £1m DOTAS penalty, late payment penalties rise, key tribunal/court cases, HMRC manual updates, trackers and diary dates—22 May 2025

In this issue: VAT Anti-avoidance Employment taxes Taxes management and litigation Finance Daily and weekly news alerts Dates for your diary Trackers New and updated content Useful information VAT Court of Appeal—facilitators of VAT fraud can be deregistered even if they make legitimate taxable supplies (Impact Contracting Solutions Limited v HMRC) In Impact Contracting Solutions Ltd [2025] EWCA Civ 623, the Court of Appeal affirmed the Upper Tribunal’s finding that HMRC is entitled to cancel a person’s VAT registration for reasons tied to tax fraud, even where that person also makes bona fide taxable supplies, so long as deregistration is a proportionate response on the facts. See News Analysis: Court of Appeal—facilitators of VAT fraud can be deregistered even if they make legitimate taxable supplies (Impact Contracting Solutions Limited v HMRC). VAT Regulations amended The Value Added Tax (Amendment) Regulations 2025, SI 2025/578, amend the Value Added Tax Regulations 1995, SI...

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NEWS
UK tax weekly highlights: Supreme Court on VAT relief, SDLT scheme fails, HMRC R&D contracting-out consultation, PAYE NICs guide, trackers and diary—15 February 2024

In this issue: VAT Companies and corporation tax Stamp and transfer taxes Taxes management and litigation Employment taxes Budget and Finance Bills International Pensions Daily and weekly news alerts New and updated content Dates for your diary Trackers New and updated content Latest Q&As Useful information VAT Supreme Court finds appellant had no reasonable grounds for its claim that the UK breached EU law in withdrawing the low value consignment VAT relief from supplies from the Channel Islands (Jersey Choice Ltd v HM Treasury) As noted below, in Jersey Choice Ltd v HM Treasury [2024] UKSC 5, the Supreme Court examined a Francovich damages action issued by the appellant against HM Treasury, seeking recompense for loss and damage said to stem from the UK’s 2012 abolition of the low value consignment relief for VAT. The claimant maintained that ending the relief amounted to a grave infringement of EU...

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View the related Practice Notes about Management contracting

PRACTICE NOTES
Light touch contracts under the Procurement Act 2023: scope, thresholds, notices, tendering and award, user choice, public service mutuals reservations, frameworks, modifications and remedies

STOP PRESS From 24 February 2025, the core provisions of the Procurement Act 2023 (PA 2023) take effect and apply. Competitions commencing on or after that date must proceed under PA 2023, while procurements started under the earlier regimes — the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011 — must continue to be run and overseen in line with those rules and procedures accordingly. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. This material concerns the Procurement Act 2023 regime. It provides practical guidance on public procurement under the Procurement Act 2023 (PA 2023). For practical guidance on light touch contracts under the former legislation, see Practice Note: Considerations when authorities procure contracts that are not subject to the full procurement regime. Overview of the light touch public procurement regime Under PA 2023, light touch contracts (LTCs) mean contracts wholly or predominantly for the delivery of identified...

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PRACTICE NOTES
Legal and practical guide to administering construction contracts: roles, payment and time processes, completion and risk, under JCT 2024, NEC3/4 ECC and FIDIC

Introduction This Practice Note explains how construction contracts are ordinarily managed on projects. It concentrates on the contract administrator’s role and how administration varies with the chosen procurement route and contract form, with particular emphasis on the JCT, NEC ECC and FIDIC suites. What is contract administration? In essence, contract administration is the supervision and tracking of a construction project to ensure successful delivery. It covers both hands-on oversight as the works get under way (eg inspecting the works, monitoring progress and conducting tests) and the handling, issuing and reviewing of the documents required by the contract (including payment notices and the evaluation of claims). In this Practice Note, ‘contract administrator’ is used as a generic label; however, different standard forms adopt different titles for the person performing this function-this is considered further in Who is responsible for the administration of building contracts? A summary of the contract administrator’s tasks appears in What does the contract administrator do? Who is responsible for the administration of building...

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PRACTICE NOTES
Construction law and practice glossary—S: schedules, scope, set-off, step-in, section 106, Scheme for Construction Contracts, suspension

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Schedule of amendments A compiled list of changes to a standard form contract in which the parties record their agreed departures from the issued terms. Accordingly, it should be read alongside the underlying standard form. The parties should ensure any negotiated and agreed schedule of amendments is duly incorporated into the contract. Within NEC3/NEC4 suites, such alterations to the standard form are known as Z clauses. Refer to Practice Notes: Construction contract documents and Selection of standard form construction contracts, and to our relevant Precedent schedules under the Precedents tab in subtopics: JCT contracts 2024—overview, JCT contracts 2016, JCT contracts 2011, NEC contracts and Other standard form construction contracts. Schedule of rates/prices A schedule used in tendering when precise quantities are not established, or within a lump sum arrangement for pricing variations (often termed a Bill of Quantities). The tenderer...

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View the related Precedents about Management contracting

PRECEDENTS
Comprehensive Amendments to SBCC 2016 Standard Building Contract (Without Quantities) for Scotland: Design Liability, Third-Party Agreements, Insurance, Bonds, Collateral Warranties, Payment, Retention, Fluctuations, Dispute Resolution and Insolvency

The Contract comprises the completed Standard Building Contract Without Quantities for use in Scotland 2016 published by the SBCC subject to the following amendments: Recitals and Articles updated: contractor to provide a master programme and Schedule of Information Requirements; CDP responsibility accepted; Principal Contractor duties priced; arbitration deleted; Schedule of Amendments prevails; Third Party Agreements duties. Contract Particulars: arbitration entries removed; Rectification Period set at 12 months; fluctuations and certain PII/guarantee entries deleted. Conditions: key definitions revised (Practical Completion, Copyright Material, Design sub‑contractors, Funder, Site); Scottish jurisdiction; approvals mean principles only; entire agreement; variations in writing. Design/materials/programming: contractor accepts ER/CP; quality and non‑deleterious materials; programme reporting; site risk; drawings/info supply; tighter discrepancy notices. Time/defects: mitigate and advise on delay; narrower Relevant Events; Practical Completion clarified; stronger rectification, consequential damage and indemnity; phased as‑built/occupation information. IP/confidentiality/BIM: broader licence, moral rights waivers and delivery; confidentiality reinforced; BIM where adopted. Management/sub‑contracting: access, approved Site Manager, meetings; prescribed sub‑contracts; collateral warranties/third‑party rights; CDM duties; insurance...

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PRECEDENTS
Customer‑favourable bespoke software development and licensing agreement with IP assignment, source code delivery, acceptance testing, delay payments, warranties and indemnities (England and Wales)

This Agreement is entered into on [ insert date ] (the Commencement Date) by and between: Parties [ insert supplier name ], a company incorporated in England and Wales, whose registered number is [ insert company number ] and whose registered office is at [ insert registered office ] (Supplier); and [ insert customer name ], a company incorporated in England and Wales, whose registered number is [ insert company number ] and whose registered office is at [ insert registered office ] (Customer). Each of the Supplier and the Customer is a party, and together the Supplier and the Customer are the parties. Background The Supplier is [ an experienced software developer and ] [ insert the Supplier’s background details and the background to the relevant transaction ]. The Customer is [ insert the Customer’s background details ]. Subject to this Agreement, the Supplier shall develop software for the Customer and will licence (or arrange...

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PRECEDENTS
Pro-supplier framework services agreement with call-off orders (single-contract), including data protection and economic crime compliance schedules — England and Wales

Dated [ date ], this Agreement is entered into between the parties identified below. Parties [ insert name of Customer ] [ of OR a company incorporated in [ England and Wales ] with registered number [ insert registered number ] and whose registered office is at [ insert address ] ] (the Customer) [ insert name of Supplier ] [ of OR a company incorporated in [ England and Wales ] with registered number [ insert registered number ] and whose registered office is at [ insert address ] ] (the Supplier) Each of the Supplier and the Customer is a party; together, they are the parties. Background The Customer carries on the business of [ insert description ]. The Supplier conducts the business of providing [ insert description of services ] to other businesses. The parties have agreed that the Supplier will provide services to the Customer on the terms contained in this Agreement....

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Q&As
Limits on contracting authority framework management charges

Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, reg 33(2) defines a framework agreement as: Regulation 33(2) of the Public Contracts Regulations 2015 (SI 2015/102) describes a framework agreement as an arrangement between one or more contracting authorities and one or more economic operators, intended to set the terms that will govern contracts awarded over a specified period, notably concerning price and, where appropriate, the quantities anticipated. The Crown Commercial Service (CCS) guidance interprets a framework agreement as a broad term for arrangements with providers that lay down the terms and conditions under which agreements for specific purchases—referred to as call-off contracts—can be put in place throughout the life of the agreement...

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