Domain – Local Administrator cannot install software on domain member server

The simplest way is to take ownership of the directory (which as an administrator, you can do), and then change the security permissions to suit your needs - add the administrators group or your user to the security permissions and allow full control, in this case.

Most software installation programs for Windows require Administrator rights to function properly. This is an artifact of the design (or lack thereof, some might say) of the Windows platform. While there is an increasing trend toward software that installs only within the writable directories accessible to a limited (i.e. non-Administrator) user (things like ClickOnce installs), the vast majority of software installers don't work that way.

There's nothing that you can practically do to accomplish what you're asking for. Anybody who tells you otherwise is either lying to you or doesn't know what they're talking about.

The single best thing an IT administrator overseeing client computer operations in a Windows environment can do to increase reliability and security is to insure that users have non-Administrator access to the client computers. Nothing has a better "payoff" than making this change. No "protection" software, Group Policy, or any other method that attempts to both grant Administrator rights and somehow limit what users do with those rights is a substitute.