Which of the following is a compensation method that aligns with the agency CM's fiduciary relationship by focusing on effort and time rather than project cost?

• A. Fixed fee
• B. Percentage of construction costs
• C. Shared savings
• D. Salary plus expenses

Answer: (A)

A fixed fee is the compensation approach that aligns with the agency CM’s fiduciary role because it isn’t tied to how much the project ends up costing. Establishing a single, upfront fee based on scope, risk, and required effort means the CM isn’t financially rewarded for increasing costs or changing scope to boost fees. Instead, the CM focuses on delivering the defined owner requirements—meeting schedule, quality, and performance targets—within the agreed-upon terms. This reinforces impartial, owner-centered decision-making and transparency, which are core to the fiduciary relationship. Other methods tie pay to project cost or involve shared savings, which can create incentives to influence costs or disputes over savings, rather than emphasizing objective management of the defined scope and effort.