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I've read several posts about unresponsive recruiters and hiring managers. However, I have an unresponsive 3rd party recruiter but the hiring manager is responding. The last conversation I had with the recruiter was that it looks like the company is making an offer after a budget meeting and I should receive an offer within 3 business days.

I allowed over a week to pass before following up with the recruiter only to receive no response. Later, the same day, I received an email from the hiring manager thanking me for my continued interest, and mentioning how impressed everyone on the team was with my skill set. The hiring manager also mentioned how none of the positions are filled yet and that they are continuing to interview candidates. He ended with "feel free to call me with any questions" and that I should hear something in the next 30 days.

It is obvious that the recruiter just forwarded the email on without bothering to contact me. During the onsite interview it was made obvious that the company is not a fan of recruiters and I'm not sure how to proceed. Is this offer dead or should I pursue this opportunity directly in the future if I am rejected for the position? Also if I get another offer while "they are interviewing other candidates" should I contact the hiring manager about this directly?

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Think of it this way, it is in that 3rd party recruiters best interest to get you an offer. If he hasn't given you feedback, it's most likely because he hasn't received a hiring decision from the hiring manager. If your fear was that the recruiter was simply being unresponsive and an offer was pending, the hiring manager would surely have mentioned that in his email. I wouldn't give up hope and I'd take what the manager said at face value, it sounds like you impressed the team during your interview, but it may be they still want to see other candidates. If the feedback was negative, there would be no reason to string you along.

You should always keep your options open and continue your job search. Now that a precedent has been set for direct contact with the manager (due to the recruiters unresponsiveness), I would stay in touch with both on at least a weekly basis via emails to the recruiter and cc'ing of the manager. Be courteous, don't be pushy, and continue to emphasize your interest in the position.

If you are getting to the point where you feel you'll be receiving an offer from another company, email both parties to update them on your situation and emphasize that they are still your first choice. If they don't respond or get back to you, well then you're probably making the right decision by accepting a role somewhere else.

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The hiring manager has given you the opportunity to contact him. So call or email with something like the following:

I also really enjoyed getting to know more about your company and this particular job, and am still excited about possibly getting to work for you. I do have a question, however. You've mentioned that you are still interviewing and I should hear more information within the next 30 days. I got a note from the recruiter the same day saying that I was going to get an offer within the next 3 days (and that was n days ago).

I don't want to lose out on an offer if there is a mis-communication and I appear unresponsive, so I just wanted to keep in contact. Please let me know of your approximate schedule for the next steps and if there is anything I should do in the meantime. Thank you.

This allows the hiring manager to know that the recruiter is giving contrary information, without putting any blame on anyone. After all, mails and emails can get lost. And it gives him the opportunity to communicate directly with you (if needed), or make sure the recruiter communicates with you more clearly.

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    Any correspondence with the potential hiring company after the interview, especially if it is with the decision maker, should explicitly say point by point why you are such a great fit for the position and explicitly point out the value you see yourself adding to the company. Until you have a signed offer you need to be selling yourself. Reminding them of your strengths will ensure they don't forget you and may subconsciously raise their evaluation of you. That information should certainly go before the mis-communication stuff.
    – Dunk
    Commented Jan 29, 2015 at 22:31

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