Which statement is false?

Which statement is false?

• A. Deficient contract documents is a common cause of disputes.
• B. As the numbers of prime contractors on a project increase, the need to carefully coordinate contract documents increases.
• C. The CMAA standard forms of agreement (Agency or CM-at-Risk Series) are the best documents for an owner to use on all design and construction projects.
• D. The owner may, without penalty, direct the CM to provide services as an agent of the owner under CMAA CM-at-Risk documents.

Answer: (D)

Under CMAA, the CM-at-Risk arrangement defines the construction manager as the manager who delivers the project with financial risk, not as the owner’s legal agent for contract administration. If the owner could direct the CM to act as an agent of the owner under a CM-at-Risk contract “without penalty,” that would blur the line between the CM’s role and an agency relationship, which the CM-at-Risk form does not establish. If the owner wants the CM to act as an agent, the appropriate path is the Agency form, which creates that agent relationship and its specific authorities.

Under CMAA, the CM-at-Risk arrangement defines the construction manager as the manager who delivers the project with financial risk, not as the owner’s legal agent for contract administration. If the owner could direct the CM to act as an agent of the owner under a CM-at-Risk contract “without penalty,” that would blur the line between the CM’s role and an agency relationship, which the CM-at-Risk form does not establish. If the owner wants the CM to act as an agent, the appropriate path is the Agency form, which creates that agent relationship and its specific authorities.