Key Issues To Consider In Relation To A Development Management Agreement

Introduction

When an owner seeks to develop its land or property and wishes to appoint a developer to do so on its behalf, parties will usually enter into a development management agreement (DMA).

An owner may wish to engage a developer under a DMA for a number of reasons, including the owner lacking the expertise, experience or capacity to carry out the proposed development itself, or because the owner wishes to pass on the management, administration and performance responsibilities in relation to the development to a third party.

This article examines some of the key legal and commercial issues to be considered when entering a DMA. The options considered are non-exhaustive and, as a DMA is generally a bespoke document reflecting negotiated commercial terms, some issues may not be relevant in all circumstances. Professional advice should always be obtained.