Consultancy AgreementConstruction

Consultancy Agreement Template for Construction Businesses (UK 2025)

Last updated: February 2025

Why Construction Businesses Need a Consultancy Agreement

Construction consultancy agreements engage specialists such as project managers, quantity surveyors, CDM advisors, and building services engineers for advisory roles on construction projects. Unlike standard professional appointments, these cover consultancy input rather than full professional services, often as supplements to the core design team. The agreement must address professional liability appropriate to the advisory role, coordination with other project consultants, and compliance with CDM Regulations 2015 where the consultant has a statutory role.

Key Clauses for Construction

  • Advisory scope with clear professional responsibility boundaries
  • Professional liability appropriate to the advisory role and project scale
  • Coordination obligations with other project team members
  • CDM compliance responsibilities where the consultant holds a statutory role

Common Mistakes

  • Not clearly distinguishing between advisory consultancy input and full professional appointment, which have different liability implications
  • Failing to address CDM responsibilities if the consultant is appointed as principal designer or principal contractor

Template Sections

  • Advisory scope and professional responsibility limits
  • Professional liability and PI insurance provisions
  • CDM role and regulatory compliance obligations

FAQ

What is the difference between a construction consultancy agreement and a professional appointment?

A consultancy agreement typically covers advisory input, peer review, or specialist guidance on specific aspects of a project. A professional appointment such as an architect or structural engineer appointment creates a full professional duty of care for design or inspection services. The liability exposure differs significantly, and the agreement must reflect which type of engagement this is to manage professional liability and insurance requirements appropriately.

What CDM responsibilities should a construction consultancy agreement address?

If the consultant is appointed as principal designer under CDM 2015, the agreement must reflect the statutory duties including pre-construction information management, design risk coordination, and health and safety file preparation. These statutory obligations cannot be contractually excluded and carry potential criminal liability. Ensure the consultant's PI insurance specifically covers CDM responsibilities.

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This is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.

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