Agency CM Firms See Opportunities But Fight To Demonstrate Their Value
Construction management on an agency basis continues to be a major element in delivery of projects, as owners increasingly are under pressure to cut costs and outsource noncore functions. But this doesnt mean agency CM is immune to construction downturns.
From a purely numeric standpoint, agency CM revenue took a hit in 2003 for the Top 100 CM-for-Fee firms, declining dramatically, from $7.8 billion in 2002 to $5.5 billion in 2003. That is a 29.5% drop. Some of this decline may be misleading, due to survey changes made by ENR in 2003. Last year was the first time the list specifically included a separate category for program management, and also specifically included program management as part of the CM-for-Fee list.