Document Type: DOCX
Number of Pages: 4
A Project Management Contract is a legally binding agreement between a Client (the person or company commissioning a project) and a Project Manager (the professional hired to oversee and deliver the project).Purpose of a Project Management Contract1. Clearly defines what the Project Manager is supposed to do (planning, coordination, supervision, reporting, etc.) and what the Client must provide (information, payments, approvals).2. Prevents “scope creep” (unauthorized project changes) by documenting the agreed services and deliverables.3. Protects both parties by providing a legal framework to handle disputes, delays, or breaches.4. Ensures compliance with Kenyan laws (e.g., Arbitration Act, NCA requirements for construction projects).5. Outlines how much the Project Manager will be paid, when, and under what conditions.6. Clarifies responsibility for expenses, VAT, and withholding tax (KRA obligations).7. Allocates risks (such as delays, cost overruns, or poor workmanship) and establishes procedures for mitigation.8. Sets standards for performance and ensures that the project is completed to the required specifications.9. Provides a roadmap for resolving conflicts, usually through mediation or arbitration in Kenya, avoiding lengthy court battles.
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