Is placing the construction manager in an agency role always beneficial for the owner?

Placing the construction manager in an agency role is not always beneficial for the owner because this arrangement can introduce potential conflicts of interest or misalignment of goals, leading to detrimental outcomes. In an agency role, the construction manager acts on behalf of the owner, which can be beneficial in terms of aligning the project’s execution with the owner's objectives. However, it can also limit the construction manager’s ability to manage on-site issues effectively, as they might prioritize the owner’s interests over practical considerations.

In some situations, the construction manager might be limited in their ability to negotiate with contractors or suppliers, which could lead to increased costs or delays if their authority is undermined. Additionally, if the construction manager lacks the requisite experience or knowledge in the specific details of the project, the agency role can lead to inadequate oversight and potential quality issues, ultimately harming the owner’s investment.

Recognizing these potential pitfalls underscores that while an agency role can yield advantages in terms of project oversight and alignment with owner preferences, it is not universally advantageous. The effectiveness of this structure truly depends on the specifics of the project and the relationships between all parties involved.