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Partners Mark Fleder and Michael McBride authored, "In Public Projects, the Agency CM is 'At-Risk," featured Construction Executive.
Partners Mark Fleder and Michael McBride authored an article, "In Public Projects, the Agency CM is 'At-Risk," which is featured in the February 2006 issue of Construction Executive. In the article, the attorneys explain that construction managers (CMs) generally fall into one of two categories - agency CMs and CMs at-risk - and they discuss their roles in public construction projects.
Mr. Fleder and Mr. McBride state that the CM at-risk directly hires the construction contractors necessary to complete a specific project. Therefore, CMs at-risk may be contractually liable to the project owner for cost overruns, timeliness of performance and quality of construction. Agency CMs, however, act as the owner's agent with respect to a specific project and are usually free from the typical liabilities faced by CMs at-risk.
Increasingly, though, that protection has eroded. Many jurisdictions are holding that the agency CMs are liable for economic losses suffered by contractors caused by the agency CM's mismanagement or negligence.
Please click on the following PDF to view this article. It was reprinted from Construction Executive, February 2006, a publication of Associated Builders and Contractors. Copyright 2006. All rights reserved.
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