What does Construction Manager-as-Agent arrangement entail?

Prepare for the Amber Book Practice Management Test with engaging multiple choice questions, detailed explanations, and study guides. Sharpen your skills and boost your confidence for the PcM exam. Get ready to ace your test!

Multiple Choice

What does Construction Manager-as-Agent arrangement entail?

Explanation:
In Construction Manager‑as‑Agent, the owner hires a Construction Manager to act on the owner’s behalf in arranging design and construction services. The owner contracts with the CM, who then contracts with the Architect and with the Contractor to deliver the project. The CM’s role is to manage, coordinate, and authorize these design and construction contracts on the owner’s behalf, while the owner retains overall control and liability. This setup keeps the CM as an agent rather than a separate contractor, and the CM does not replace the architect or limit the owner’s contracting relationships to meetings—it's about the CM managing the process and signing contracts with the design and construction teams for the owner.

In Construction Manager‑as‑Agent, the owner hires a Construction Manager to act on the owner’s behalf in arranging design and construction services. The owner contracts with the CM, who then contracts with the Architect and with the Contractor to deliver the project. The CM’s role is to manage, coordinate, and authorize these design and construction contracts on the owner’s behalf, while the owner retains overall control and liability. This setup keeps the CM as an agent rather than a separate contractor, and the CM does not replace the architect or limit the owner’s contracting relationships to meetings—it's about the CM managing the process and signing contracts with the design and construction teams for the owner.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy