Construction Leaders Podcast
Episode: Managing Risk and Responsibility in Construction Management
Date: April 1, 2026
Host: Construction Management Association of America
Guests: Michael Griffin (Partner, HKA), Sean Farrell (Partner, Coen Siglitz)
Episode Overview
This episode explores the increasingly complex topic of risk management and responsibility for Construction Managers (CMs) in today’s construction industry. Hosts Karlie Trout and Evan Hendershot facilitate a deep-dive conversation with legal expert Sean Farrell and industry leader Michael Griffin, focusing on:
- Key CM roles and their evolution
- How legal risk is expanding for CMs
- Strategies to stay protected and proactive
- Practical tips for owners, CMs, and project advisors
Key Discussion Points & Insights
1. Defining the CM Role and Primary Responsibilities
Timestamp: 03:52 – 08:07
- Michael Griffin describes the CM’s essential functions:
- “Our role is to manage, to document, and to advise, to keep the owner out of trouble, to manage all of the other players in the process...Our motto used to be no surprises.” (04:18)
- Sean Farrell uses an air traffic controller analogy:
- Emphasizes scheduling, documentation, trade coordination, cost management, and proactive issue resolution.
- “There are really every aspect of construction...these are all the areas that you want a good CM, just like a good air traffic controller.” (04:55)
- A nuanced distinction in liability: Even CMs acting strictly as agents (vs. at-risk) may face exposure if their professional judgment is relied upon by others (as per ‘Built Right’ case law in Pennsylvania).
- “If I make a negligent misrepresentation...I can be liable if I'm negligent, meaning I make a false representation that I know or should know is false. Someone else reasonably relies...and then they rely upon it to their detriment.” – Farrell (06:00–07:30)
- Memorable summary:
- “If you don't do a good job, you can be sued by your client. You can also be sued by others who rely on you doing a good job.” – Griffin (08:07)
2. Most Underestimated CM Responsibilities
Timestamp: 08:19 – 11:20
- Sean Farrell:
- “Early risk identification is the major underestimated responsibility of the construction manager to get out in front of these issues and as quickly as possible.” (08:28)
- Highlights the importance of strong back-office procedures—change orders, RFIs, and responsive documentation.
- Michael Griffin:
- Stresses the owner's need to make timely decisions:
- “When presented with an issue, it's incumbent on the owner to make a quick decision...time is money. Disputes and issues will grow.” (09:33)
- Timely payment is essential to project health.
- Stresses the owner's need to make timely decisions:
- Cause & Effect:
- Delayed responses or payments turn problems into full disputes, including stacking trades and schedule acceleration.
- “All projects are going to have problems…But not all projects have disputes.” – Farrell (10:14)
- “If he or she does it right, you never see the dispute, you never see the problem.” – Farrell (11:14)
3. Responding to Contractor Performance Issues
Timestamp: 11:20 – 15:44
- Key Steps for CMs:
- Immediate, thorough documentation of performance issues.
- Clear, well-timed communication with contractor leadership.
- Know your contract—advisor vs. at-risk roles carry different boundaries.
- Avoid providing explicit means/methods instructions if not contractually responsible.
- Sean Farrell:
- “I would want them to look at their contract, their rights and responsibilities and what obligations they owe...putting people on notice.” (12:00)
- Michael Griffin:
- “A CM at risk…at that point in time they are the contractor and they do have responsibility for the means and methods.” (15:06)
- Language matters: Distinguish between observing (“I recommend…”) vs. instructing means/methods (“Do this…”).
- Memorable warning:
- “Where there's control, there's responsibility. And responsibility means potential liability.” – Farrell (15:44)
4. Owner-Related Risks: Delays, Design, and Scope Changes
Timestamp: 16:20 – 20:18
- Michael Griffin:
- CMs must “prod the designers to meet the same schedule that they’re pushing other parties to meet.” (16:35)
- Early CM involvement in design coordination is critical.
- Sean Farrell:
- “Incomplete design leads to all kinds of problems...That’s where a CM can really come in, show some immediate clarity.” (17:16)
- CMs should push for realistic budgets, schedules, and regular short-interval planning ("two week look aheads").
- Scenario: When facing high-rise schedules, CMs may need to propose creative options for partial turnovers based on the owner's business needs.
- “Presenting those options as a CM to an owner and letting them know where the cost is and therefore they can project into what choices they want to make.” (18:55)
5. Expanding Legal Exposure: Why Courts Are Broadening CM Liability
Timestamp: 20:18 – 23:46
- Sean Farrell:
- Courts seek to “put people who are in control with the responsibility of paying for the decisions that they make.” (20:35)
- The CM’s growing knowledge base and role in both design and completion makes them a target for greater liability.
- Example: Overbroad contractual titles or role creep can create unexpected exposure.
- “Let’s make sure your contract terms and conditions align with what your intended role is to be.” (22:01)
- Michael Griffin:
- Sees increased liability as validating the profession:
- “The industry is recognizing construction management as a profession similar to architecture and engineering.” (21:29)
- Sees increased liability as validating the profession:
- Takeaway: Align scope of responsibility in contracts with the actual role the CM will provide.
6. Actionable Checklist to Reduce Legal Exposure
Timestamp: 24:05 – 25:56
- Sean Farrell’s Top Tips:
- “Stay in your contractual role. Stay in your lane. Don't escalate outside of it.” (24:06)
- Use careful language—recommend, observe, advise (not “approve” or instruct).
- Treat all emails and project records as potential legal exhibits.
- Michael Griffin:
- “Do not start to become someone who is directing…You coordinate. You document what they do. That...is the best way to preserve your situation of not being liable.” (25:29)
- “When somebody says he told me to do it that way, no, it's not my job. The designer tells you how to do it. Your job is then to go do it.” (25:47)
Notable Quotes
- “No surprises. That we want the owner to be fully aware of what is happening and we want them to hear it from us.” – Michael Griffin (04:18)
- “If you don't do a good job, you can be sued by your client. You can also be sued by others who rely on you doing a good job.” – Michael Griffin (08:07)
- “Early risk identification is the major underestimated responsibility of the construction manager...” – Sean Farrell (08:28)
- “Where there's control, there's responsibility. And responsibility means potential liability.” – Sean Farrell (15:44)
- “Let's align that contract language with what you actually intend to do...that way we can better protect the CM from this expanding, never ending role of potential liability.” – Sean Farrell (22:01)
- “Stay in your contractual role. Stay in your lane.” – Sean Farrell (24:06)
- “You coordinate. You document what they do...that’s the best way to preserve your situation of not being liable.” – Michael Griffin (25:29)
Timestamps for Key Segments
- CM Responsibilities & Evolving Role: 03:52 – 08:07
- Most Underestimated Responsibilities: 08:19 – 11:20
- Contractor Performance Issues: 11:20 – 15:44
- Owner-Related Risks: 16:20 – 20:18
- Expanding Legal Exposure: 20:18 – 23:46
- Legal Exposure Checklist: 24:05 – 25:56
Tone & Style
The conversation is authoritative but practical, combining legal precision with real-world project examples. Both guests use analogies and scenarios drawn from decades of experience, providing a sense of how theory and practice meet in daily construction management.
Conclusion
This episode offers a deep, actionable overview of the risks facing construction managers and the evolving legal landscape that affects them. The core recommendations focus on proactivity, clarity of role, meticulous documentation, and continuous, realistic communication both within teams and with clients. Adhering strictly to the contractual role is the best shield against unnecessary liability, and the growing recognition of CMs as high-level professionals offers both opportunity and responsibility.
For those interested in going deeper, a companion webinar by the same experts is available via CMAA.
