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Skip Navigation LinksDepartment of Housing and Public Works > Construction > Building services for government > Contract management > Forms of contract > Managing Contractor

Managing Contractor

Managing Contractor Two Stage Design and Construction Management (Negotiated Guaranteed Construction Sum)

Used for major or complex projects where early contractor involvement is required.

The contract documents available for download in respect of the managing contractor form of contract are not generic and are examples only; they should not be used on Queensland Government building projects without first contacting Contract Services.

Under the managing contractor form of contract the principal prep​ares a project brief, including a budget estimate and estimated completion time. During Stage 1, the Managing Contractor (MC) works collaboratively with the principal to revise the project brief and refine the design to meet budget and time constraints, and then submits a Guaranteed Construction Sum (GCS) Offer. If the offer is accepted, Stage 2 commences and the MC completes the design and documentation and manages the construction.

The MC is paid fees for each stage, as well as the actual cost of construction (ACS), up to the accepted GCS. Where the ACS is less than the GCS, the MC may also receive a bonus share of the difference. Other available forms of the managing contractor contract include single stage, document and construct and construction management versions.

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Last updated 27 September 2018    Creative Commons Attribution 4.0 International (CC BY 4.0)

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