Construction Manager as Adviser Vs. Construction Manager as Agent - As they relate to Contracts and Obligations
Unless I’m missing something, why is there an official contract for CMa (A-132) Adviser but not one for an Agent? From how I see it the risk of the CM increases in this order, Adviser (least risk-may take on cost estimating and fiscal responsibility if asked to by owner) Agent (more at risk than just an adviser-responsible for cost estimating and fiscal responsibility ) And Constructor (highest level of risk since CMc is essentially the builder/General Contractor) Why is there no Construction Manager as Agent family of AIA Standard form of agreements?
Furthermore: since there is no family of agreement documents per the AIA: how are the contractual obligations of an Agent determined? It would appear that the Agent would hold three separate contracts, one with Owner, one with Architect and one with Contractor Vs. CM Adviser who only holds one contract with the Owner?
Also: in the Construction Manager as Advisor A-132 Standard Form Of Agreement Between Owner and Contractor, CM Adviser - the wording of the document suggests that the contract is between both Owner Contractor and Owner CM Adviser?
There are a handful of questions here and I hope they were written clearly. I would truly appreciate any help with these questions. Thank you in advance!
Figure 9.1 AHPP Page 510 for reference***
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Maybe all the above can be better explained simply:
CMa-Adviser
Adviser is only contractually obligated to Owner. (Holds one contract).
CMa-Agent
Is the Agent in addition to being Contractually obligated to Owner, also Contractually obligated to both Architect and Contractor? (Holds 3 Contracts?) -
Hi Pierre,
Could you please explain more how CMa as a Agent holds 3 contract. My understanding is that CMa as a gent has no direct relationship with architect or contractor with the same contract configuration of CMa-adviser. The only difference is that CMa as a Agent has an additional fiduciary responsibilities like signing contracts and making financial decision on behalf of the owner.
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Hi Haytham,
I’m trying to understand the concept as well. I was looking at Figure 9.1 on AHPP on page 510.
In CMa(Adviser) there is a hard line connecting Owner to CM. In the CMa (Agent) the three prime players (Arch/Owner/Contractor) each have a distinct hard line drawn to the CM Agent who sits in the middle of the triangle.
Maybe I’m misreading the diagram but I was making an assumption that the hard lines represent Contractual Obligations.
So, to answer your question, I’m not saying they are I am asking because I am not clear on the concept with regards to Contractual Obligations.
I did not intend to make it appear that is what I thought. The diagram confused me and made me think there are three separate contracts, and that is why I asked because I am not sure. And I still don’t know if there is a separate AIA contract for CM agent.
I hope that was clearer. I look forward to your thoughts and thank you for responding. -
Hi Pierre,
Yes, the diagram is quite confusing, my interpretation is that the line presents the relationships structure, not the contractual relationship. In CM-Agent the client authorize the CM-Agent to act on behalf of him for the financial decisions (decision-making authority), in other word, the client doesn’t need to communicate with any one rather than him. That’s why the diagram present him after the owner as if he’s the owner. See AHPP Pages 514 & 515
I think AHPP is not comprehensive about the delivery methods, did you try CLARE Article (Understanding Project Delivery Methods)
Let me know if you have need further question. -
Navigate the above link for CLARE, let me know if you still have any other question.
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Pierre Antounian, did you ever clear this up? I am having the same confusion. Why is there no AIA contract for CM-Agent?
Also, I see contradictions looking at the charts in AHPP 9.2 and 9.3 as to when the cost of construction is determined. Figure 9.2 says "N/A" for CM-Advicer and "at completion" for CM-Agent. Figure 9.3 says "after design" for both CM-Advicer and CM-Agent. I hope I am not scrutinizing this too much. Thanks in advance.
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Hi Pedro. I did not unfortunately. After Covid, I lost full traction and everything I learned 7-8 months ago dissipated. I’m planning on starting up again soon. If you find the answer, please share here.
I feel your pain though.. some of these topics are nebulous. Someone here will have the answer! -
Hi guys. I'm currently studying for PcM and am confused by the same thing. My understanding is similar to Haytham's, that the CM as agent has a contractual relationship ONLY with the Owner. The fact that there are no AIA documents for this project delivery type would support this in a way because the structure of contractual obligations is no different than that of the CM-advisor model. The difference between the 2 is that any clauses in the A-132 dealing with CM's duties and powers would just have to be revised in a way that gives the CM more of everything.
Conceptually, the CM's duties, powers, liabilities, etc. are beefed up to the extent that he's essentially stepping in for the Owner, kind of like power of attorney. He can make the decisions for the Owner, decisions affecting both the Architect and Contractor, but contractually, he's only obligated to the Owner.
As far as the circle diagrams, sometimes they're drawn with solid lines for contractual relationships and dotted lines for communication. So, for the CM-agent model, the CM would have a solid line ONLY with the Owner and dashed lines to Architect and Contractor (see diagrams below). I know it's usually drawn differently with the CM in the middle and lines radiating out to the other 3 parties, but this is where my questions first arose, because I don't think the contracts are set up like that. It wouldn't make sense for the CM to open himself up to that kind of liability, from everywhere, especially when he's just playing an administrative role without any ownership.
WARNING: These are just my personal thoughts trying to work this out in my head, so I could be totally off the mark. A confirmation either way would be great!
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Hi Andrew, assuming that solid lines mean contractual relationships and dashes mean communication, I would say that the CM-Agent and CM-Advisor would have the exact same diagram. I say this because the CM-Advisor is heavily involved in communication with the Architect throughout the design (cost estimates, project scheduling, etc.) and construction phase (they're solely in charge of issuing change orders/CCDs), as well as the contractor, since the CM-Advisor (or CMs for that matter) is to form the conduit between Owner and Contractor.
Am I the only one here who feels like the AHPP is a hodgepodge of poorly-organized articles slapped together and marketed as a "handbook"?
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Hi Everyone, I was having the same issue, but I came across this slideshow for AIA Minnesota and it seems to relay that there are NO official AIA Contracts for CM Agent. https://www.aia-mn.org/wp-content/uploads/AIA-2019-Documents-T7-OPT.pdf
See slide 22 - Other Terminology: It seems that the AIA Docs use "CMa" as CM Adviser, but may also refer to them as CM Agent. I think in other areas they are completely separate, but with the AIA Contract Docs - there is no "Agent" specific documents.
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I'm looking for clarity on the question that Pedro brought up regarding the discrepancies between Figure 9.2 and 9.3 in the AHPP. I'm looking at the 15th Edition, Figure 9.2 is on pg 512, Figure 9.3 is on pg 516.
Cost Plus Fixed Fee:
- 9.2: Construction Cost determined at completion.
- 9.3: Construction Cost not indicated.
CM-Adviser:
- 9.2: Construction Cost "N/A"
- 9.3: Construction Cost determined between Bidding and CA.
CM-Agent:
- 9.2: Construction Cost determined at completion.
- 9.3: Construction Cost determined between Bidding and CA.
Furthermore, Figure 9.3 is inconsistent unto itself. The legend shows "BN" as the Bidding/Negotiation Phase, but in the chart this phase as shown as "PR", I'm assuming "pricing". BN is not on the chart anywhere except for the legend.
For the test, when is the Construction Cost determined for Cost Plus Fixed Fee, CM-Adviser, and CM-Agent?
This is frustrating. I just switched gears from Pluralsight because their content was not aligning with the AHPP. I can kind of see why now, since the AHPP is inconsistent about project delivery methods within the same chapter.
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