What potential issue arises from a method of compensation indicative of an agency CM relationship?

In an agency Construction Manager (CM) relationship, the CM acts on behalf of the owner, and their compensation may be structured in a way that creates a potential conflict of interest. This occurs because if a CM's fees are tied to project popularity or contractor performance, they might face a dilemma between serving the best interests of the owner and maintaining good relationships with contractors, which is not inherently aligned with those interests.

This type of compensation can lead to the CM favoring certain decisions that might not directly benefit the owner, resulting in a misalignment of priorities. It's important to ensure that the CM's goals are fully aligned with those of the owner to promote transparency and trust throughout the project lifecycle. Thus, the risk of conflict of interest is a core concern in agency relationships, highlighting the complexity and necessity for clear communication and expectations between all parties involved.