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Two Men Shaking Hands

Agency Construction Management

With Agency Construction Management, the Construction Manager (CM), assumes the position of professional advisor or extension of staff to the Owner. It is a fee based service in which a CM acts in the owners best interest throughout each stage of the project. The Owner handles the contracts, while certain cost and performance risk is placed on the contractors. An agency CM does not contract with subcontractors. In these cases, the CM is in a position to offer advice unencumbered by any interests other than those of the Owner and the project. The term agency infers, as is intended, a delegation of function to the CM by the Owner. As a consequence, it is possible that certain tasks and responsibilities place the CM in a legal agent relationship with the Owner. This makes it necessary for openness and trust between the CM and the project Owner.

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