Development Management Agreements

The points to be considered and protected are different for each type of development agreement. However, any type of land transfer is important because it can have tax and tax consequences for both parties and jeopardize the viability of development. The developer may still face problems due to the direct responsibility of the owners for the development costs. For example, the owner may be slow to pay and affect the development program and obligations imposed on the developer. The success or non-development and benefit obtained by the parties are largely related to the allocation of risks within the agreement and the control of each party over the costs and revenues of development. The development agreement should allow each party to have some control over the costs and revenues of development. Development management fees can be calculated in different ways: Lend Lease entered into a DA sale with VicUrban in 2001 for the sale and development of part of the Docklands district in Melbourne. The parties agreed that the development should be orchestrated and that VicUrban transfer the country in tranches to Lend Lease. Lend Lease would occupy land, design, build and sell residential and commercial buildings in the countryside. Each of Lend Lease and VicUrban would build different infrastructures on and around the earth. Parties should carefully consider the extent of the services requested by an owner and provided by the developer. A detailed level of benefits is generally included in the schedule or schedule of a DMA and may be as limited or broad as the parties require. Some examples of services provided by a developer in a DMA are general development activities, legal and investment services, project financing, coordination and development of design documents, processing of approvals, purchasing services, construction and project management, development marketing, leasing and asset management.

The developer may agree to incur costs below a certain threshold and to require a refund by the owner. However, there is a general reluctance to all development costs.