Can an Owner maintain a full agency relationship with the CM while transferring risk?

Maintaining a full agency relationship between the Owner and the Construction Manager (CM) while simultaneously transferring risk is inherently contradictory. An agency relationship typically entails that the agent (in this case, the CM) acts on behalf of the principal (the Owner), meaning that the agent takes on certain responsibilities and liabilities for the actions taken during the project's execution.

When an Owner transfers risk, they are effectively shifting certain responsibilities away from themselves, which may undermine the foundational aspects of the agency relationship. In full agency scenarios, the Principal retains control and liability for the actions taken by the Agent, aligning their interests closely. Transferring risk typically suggests a division of responsibility, which negates the idea of a fully aligned agency relationship, where the CM would normally act in the best interest of the Owner without conflicting interests.

Thus, the assertion that an Owner can maintain a full agency relationship while transferring risk does not hold true, leading to the conclusion that the two concepts are indeed contradictory.