General Contractor vs Construction Manager – Who to Hire?

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General Contractor vs Construction Manager

The general contractor and the construction manager have vital roles in construction projects. Whether your project is simple or complex, knowing the strengths and responsibilities of each role leads to success. That’s what the right choice between a general contractor (GC) vs. a construction manager (CM) can help you achieve.

We will compare these two roles to help you feel confident and know which one you need—a general contractor or construction manager.

What is a General Contractor?

A general contractor (GC) takes charge of a construction project once the design is complete. They turn blueprints into a finished building by managing the entire construction process. GCs hire and oversee subcontractors, procure materials, and coordinate all on-site activities to verify the project meets design specifications and stays on schedule.

They usually get involved after the design phase and are selected through a bidding process. Their job is to keep construction running smoothly, handle issues, and finish the project on time and within budget.

What is a Construction Manager?

A construction manager (CM) gets involved much earlier in the project, often before the design is finalized. They advise the project owner, helping with planning, budgeting, and scheduling to check everything is organized before construction starts.

CMs work closely with architects and engineers during the design phase, offering input on materials and timelines. Once construction begins, they oversee the entire process to meet the owner’s expectations.

They are paid a fixed fee, aligning their interests with the project’s success rather than profit from construction. CMs remain involved from initial planning to project completion, addressing issues quickly and effectively.

General Contractor vs. Construction Manager – Key Differences

The following are the distinctive areas that define their jobs on the construction site.

Project Phase Involvement

CMs join early, often during the design phase. They help with planning, budgeting, and scheduling from the start. This early involvement lets them influence decisions and set up the project for success​​​​.

General contractors come in after the design phase is complete. They step in once the plans are ready, focusing on turning those designs into a finished building. Their primary role is to manage the construction process, ensuring everything goes according to plan and timeline​.

Decision-Making and Authority

Construction managers guide major project decisions. They work closely with the project owner and design team, advising on materials, construction methods, and scheduling. They aim to keep the project on track and within budget​​​​.

While general contractors focus on execution and on-site management. Once construction begins, they make day-to-day decisions to keep the project moving smoothly. They supervise subcontractors, solve on-site problems, and ensure the work meets design specifications​​​​.

Risk Management

Construction managers help reduce risks early through careful planning and design input. Addressing potential issues during planning can prevent problems. This proactive approach helps keep the project on schedule and within budget​​​​.

Besides, general contractors control problems during the construction phase. They handle unexpected issues on-site and adjust plans to keep the project moving forward. Their role is more about reacting to problems and finding solutions to keep construction on track​​​​.

Compensation Models

Construction managers usually work on a fixed-fee basis. They are paid a set amount for their services, aligning their interests with the project owners’. They focus on the project’s success rather than maximizing construction profit​​​​.

General contractors are often paid on a lump sum or cost-plus basis. The GC agrees to complete the project in a lump sum contract for a set price. In a cost-plus contract, the GC is paid for the actual costs plus a percentage of the profit. This can lead to focusing on staying under budget to increase profit, which may only sometimes align with them.

Making the Right Choice – General Contractor vs. Construction Manager

Evaluation of construction managers vs general contractors depends on the following things:

Project Complexity

Hiring a general contractor (GC) might be enough for simple projects like a small home renovation. GCs efficiently govern the construction phase, confirming everything is built according to the plans. Their focus on execution and on-site management makes them ideal for these types of projects.

You need a construction manager (CM) for larger, more complicated projects. These projects involve multiple phases, extensive planning, and coordination with various stakeholders.

CMs provide early and continuous oversight, helping with planning, budgeting, and scheduling from the design phase through completion. Their involvement ensures complex projects stay on track and within budget.

Owner Involvement

Working with a GC might be the better choice if you like to be directly interested in your project. GCs head construction while you stay engaged with day-to-day decisions and problem-solving. This hands-on owner gives you more control over the project details.

A CM is ideal if you prefer to leave detailed management to a professional. CMs act as your advisor and manage the project’s overall progress. They validate the project aligns with your goals and handle coordination with architects, engineers, and contractors.

This hands-off owner approach is beneficial if you want less involvement in daily operations but still want to ensure the project meets your expectations.

Budget and Risk Tolerance

Hiring a general contractor (GC) can be cost-effective for projects with tight budgets. GCs are motivated to complete the project within the agreed-upon price, often through lump-sum contracts. This arrangement helps keep costs predictable and manageable, making it a good choice for budget-conscious projects.

If minimizing risk is a priority, a CM provides valuable supervision. By getting involved early and helping with planning and design, CMs can identify and address potential issues before construction begins. Their proactive approach reduces the likelihood of costly surprises and assists keep the project on schedule and within budget.

Conclusion

Take the time to evaluate your specific project requirements, complexity, and personal involvement preferences. Consulting with professionals can provide tailored advice and support you select the right path for your construction project.

Whether you decide on a general contractor or a construction manager, checking their strengths align with your project’s needs will set you up for success.

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