If you are thinking about hiring a construction manager for your project, there are some differences between the roles. A construction manager is hired to manage a team of subcontractors on your behalf, while a general contractor is legally responsible for the project itself. The two roles are similar, but the main difference is that the construction manager works directly with suppliers and subcontractors on your behalf. A construction manager can come up with valuable value-engineering ideas and oversee the work of all trades and suppliers.
The job of a general contracting services is to oversee the project’s activities and hire subcontractors and vendors for the work. A general contractor also has managerial personnel on their payroll to oversee the project’s progress. They also coordinate and oversee the project’s overall design and construction, and enforce safety programs and compliance with OSHA requirements. Finally, a general contractor must manage the costs of a project, as well as obtain required permits and approvals.
General Contractors often work under a Stipulated Sum or Lump Sum contract, where the owner invites the contractor to bid. They analyze the drawings and scope of work and collect bids from qualified subcontractors. Once the project is selected, the general contractor is bound to complete it for the agreed price, which includes all markup and overhead costs. In this way, the GC can keep more of the profit than the subcontractors who perform the work themselves.
When it comes to project management, a construction manager works under a cost-plus contract. This revenue model eliminates competitiveness in the General Contractor/owner relationship. Construction managers are typically selected based on their expertise, past track record, estimated cost, or winning a bid appeal. A construction manager’s job is to coordinate the various entities involved in the project, and can help the owner coordinate the construction team and manage the budget.
Construction managers and general contractors have different relationships with owners. The former enjoy negotiated work, while the latter usually obtains most of their work through a competitive bidding process. Especially for new GCs, competitive bidding is a good way to establish reputation and repeat business. A general contractor (GC) may work on a project on its own or hire others to help complete the project. They are typically paid a set fee for the entire project.
A general contractor (GC) oversees day-to-day activities at a job site. They use their own carpenters, laborers, and employees, as well as subcontractors for specific labor. A construction manager also serves as a liaison between the building owner and subcontractors, while acting as the primary point of contact. However, a GC may also be hired to do all the work that is required on a project.
In addition to providing construction management, a project manager helps to improve the overall project. Documenting each aspect of the project is time-consuming and can sometimes fall on the general contractor. A project manager can streamline this process by ensuring that everyone understands their roles, and the invoicing is accurate and aligned with contractual obligations. The construction manager is the key to a successful construction project. It is essential to understand the role of each party, as well as to avoid costly surprises.