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GC vs CM: When to Hire a Construction Manager vs General Contractor

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When considering a construction project, one of the crucial decisions you'll make is whether to hire a general contractor or engage a construction manager. Both play pivotal roles in construction processes, yet their functions differ significantly, catering to diverse project needs. Let's delve into the details of each role and understand how they compare.

The choice between a general contractor and a construction manager often depends on your project's unique requirements, your involvement in the project, and your budget. Each role comes with its own set of responsibilities, benefits, and potential drawbacks.

General Contractor

A general contractor, or GC, is typically hired to handle every aspect of a project, from start to finish. They are responsible for ensuring the project is completed on time, within budget, and to the required standards.

GENERAL CONTRACTOR VS. CONSTRUCTION MANAGER — SUITEADDITIONS.COM
GENERAL CONTRACTOR VS. CONSTRUCTION MANAGER — SUITEADDITIONS.COM
General Contractor vs Subcontractor
General Contractor vs Subcontractor
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GCs usually enter into a fixed-price contract, which means they bear the risk for any cost overruns. They oversee all phases of construction, coordinate subcontractors, and manage permits and inspections. They are ideal for homeowners or developers who want a single point of contact for their project and prefer a straightforward, no-hassle approach.

Primary Responsibilities

General contractors are responsible for:

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what to look for in a general contructor vs construction manager
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General Contractor vs Subcontractor Key Difference
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  • Project management and scheduling
  • Hiring and managing subcontractors
  • Purchasing materials and equipment
  • Ensuring compliance with building codes and regulations
  • Quality assurance and warranty work

Benefits and Drawbacks

Using a general contractor offers several advantages:

  • Single point of contact and accountability
  • Fixed-price contracts that protect the owner's budget
  • Expertise and experience in managing complex projects

However, there are potential drawbacks to consider:

  • Limited owner involvement in the project
  • Potential lack of flexibility in contract terms
  • Potential conflicts with subcontractors are the GC's responsibility

Construction Manager

Construction managers (CMs) provide another approach to construction projects, offering more flexibility and owner involvement. They are usually hired during the design phase and act as an extension of the owner's team, providing guidance, assisting with decisions, and ensuring the project's success.

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two men in hardhats and safety vests looking at construction plans
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Contractor vs. Subcontractor: What Are The Key Differences? | BigRentz
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General Contractor VS Restoration Contractor | MICHIGAN
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Engineering Notes, Construction Documents, What Does A Construction Project Manager Do, Construction Project Management Infographic, House Deck, Civil Engineering Jobs, Architectural Materials, Construction Management, Construction Activities

CMs typically work on a cost-plus fee structure, meaning the owner incurs the direct costs of the project, and the CM's fee is based on a percentage of those costs. This structure encourages CMs to find ways to reduce costs and save the owner money.

Primary Responsibilities

Construction managers are responsible for:

  • Assisting with project planning and design
  • Advising on constructability and value engineering
  • Developing and maintaining the project budget
  • Hiring and coordinating subcontractors
  • Ensuring project progress and quality standards

Benefits and Drawbacks

Engaging a construction manager offers a range of benefits:

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two men standing next to each other in front of a construction project management plan poster
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two people standing on top of a wooden floor with the words how to be your own general
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General Contractor Information
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Should you be your own General Contractor?
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two construction workers shaking hands with the words five ways to manage your construction team on top of
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Design-Build vs General Contractor in NYC: Which Is Better?
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three people in safety vests and hard hats working on construction plans at a table
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Things every general contractors secretly deals with ......
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two men standing next to each other in front of a building site with the words project manager
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Building a Structurally Sound Relationship when Hiring a General Contractor
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an info poster with the words choosing a contractor for your business or company
  • Greater flexibility in contract terms and fee structures
  • More owner involvement and control over the project
  • Expertise in cost management and value engineering

However, there are potential drawbacks to consider:

  • Variable costs and potential budget overruns
  • Increased owner responsibility for project oversight
  • Potential conflict of interest in subcontractor selection

Ultimately, the choice between a general contractor and a construction manager depends on your project's unique needs, your budget, and your preferred level of involvement. Both roles have their place in the construction industry and can help ensure your project is a success. When making your decision, consider the specific requirements of your project and weigh the benefits and drawbacks of each approach. By doing so, you'll be well on your way to selecting the right partner for your construction needs.