|| Author: Duncan Riley|

Dma Development Management Agreement

In the event of a significant delay in development caused by the contractor`s tool requirements or problems in the Covid-19 supply chain, all provisions relating to force majeure must be taken into account. A developer would argue that any delay is beyond its control. Force majeure is not a concept defined by law, which is why any provision must be verified for its reason and facts. A DMA may depend on compliance with certain conditions precedent. For example, a DMA may be subordinated to the owner`s acquisition of the land/land to be developed. In addition, development may be subject to the condition of obtaining satisfactory authorizations, such as. B approval of the plan. The Tribunal referred to the 1998 Exclusion Regulations and stated that its remark seems to indicate that, where the assignment takes place to a person who is not a party to the agreement, it is a construction contract; But there is nothing in the regs that says that — all the agreement has to do is provide for an assignment — the conclusion is that that assignment could be for everyone — as would almost always be the case in a development agreement. Another important regulation within a DMA is the clarification of responsibility for development costs incurred. While these costs should ultimately be borne by the owner, there are essentially two possibilities: the owner can bear these costs directly upon request and instruction from the developer; second, the developer can bear these costs and request a refund from the owner at a later date.

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