Understanding the difference between a General Contractor and Construction Manager
Commercial construction projects are enormous undertakings for property owners. While the general process to bring a project from initial concept to approved design to construction to occupancy is the same, the timeline and requirements for every project are unique. There are dozens of entities and specialty companies involved in each phase of pre-construction, construction, and post-construction that all need to work seamlessly together.
Owners can choose a General Contractor or Construction Manager structure for each building project. Both models provide professional expertise to guide the construction process, but they are distinctly different. It is important for Owners to understand the differences to select the right model for the project needs.
NDC Construction Service Models
| General Contractor | Construction Manager | |
|---|---|---|
| Selection | Typically selected through a competitive bid at the start of the construction phase | Typically selected based on referral or prior relationship early in the pre-construction phase |
| Role | Project Manager in charge of building the building. Day-to-day coordination with subcontractors, on-site supervision, and communication with the owner and/or architect | Collaborative partner to provide input on the project design and plans as well as project management to work directly with subcontractors, on-site supervision and communication with the owner |
| Responsibilities |
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| Pricing/Fees | Budgets developed from project plans based on Guaranteed Maximum Price (GMP) or Cost Plus | Typically, a set percentage of project cost |
| Value | Less Control | More Control |