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Responsibilities
The responsibility of a project manager extends beyond the construction role of a contractor and the designing and certifying role of an architect. In its full sense, the project manager would be appointed before the architect and remain long after the contractor has finished. This type of project manager is fulfilling a professional role and is usually independent of the client, the design team and the contractor.
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Liabilities
Project managers may be able to avoid specific liabilities by depending on the responsibilities and liabilities of the other professionals involved in the project.
Where the project manager has an agreement with the client it is appropriate that, in addition to the role of the project manager being defined, the agreement should also include the definition of responsibilities and liabilities.
Architects must be aware that if they undertake project management services, they may extend their liability beyond the cover normally provided by a professional indemnity insurance policy. Refer Acumen note Project management services – liability for.
An architect entering into a contractual arrangement requiring project management services should exercise caution before agreeing to the terms, both explicit and implicit, and should seek legal and insurance advice where doubt exists.
Professional independence
The project manager generally acts as an independent consultant and is paid a fee for its services. They have no vested interest in any of the contracts and risks are borne by the owner and the contractors. In this manner, their advice can be seen to be impartial. Where the project manager has a dual role, and there is a need for independent and impartial advice, a conflict of interest can arise. See Acumen note Project management services – liability for.
Even if the party offering dual services acts professionally in both roles, eg project manager-architect or project manager-quantity surveyor, independence must exist in each role, and it must be seen to exist. Refer Acumen note Client note: The independent role of the project manager.
Project management fees
The fee for project-management consultancy services is an additional cost that should be borne by the client. It is important for clients to understand that the project manager relieves them of many of their responsibilities and that this service should be paid for in addition to the design fees.
Disclaimer
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