Jurisdiction(s):
United Kingdom

Key definition

Management contracting definition

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...

Management contracting in UK construction: procurement overview, roles, risk and payment structure, advantages and disadvantages, and the JCT 2024 Management Building Contract suite

Published by a LexisNexis Construction expert

Practice notes

This Practice Note outlines Management contracting and the reasons this Procurement route is adopted. Within the UK construction sector, the prevailing choices remain the traditional approach or design and build (see Practice Notes: Traditional procurement of construction contracts and Design and build procurement). Management procurement currently sits in the minority, though that has not always been true. In the late 1980s and early 1990s it was the preferred option for numerous major commercial projects. The market may well pivot back towards it in time. The two principal strands of management procurement are management contracting and Construction management. See Practice Note: Construction management.

What is management contracting?

Management contracting is a variant of the traditional procurement model. It was brought into the UK from the US construction market to mitigate some of the perceived adversarial behaviours that were prevalent at the time…

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Web page updated on 21/05/2026

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