What Is the Difference between a General Contractor and Project Manager

CMs usually list the benefits for the owner as follows: It`s good to know that I can also expect good working relationships between workers when hiring a commercial contractor. I`m thinking about building my own commercial branch soon as part of my preparations to start my own food business. If you`re starting out with a family-run restaurant, you can experiment with different menu items to see what sticks. It is not uncommon for a GC to act as a CM for some owners. In some cases, a GC may have completed certain projects for a particular owner and established a relationship of trust with that owner. Some time later, the owner can ask the GC to run a new project as a CM. The motivation for this is less money than trust, but a preference for the style and substance of the individual`s construction. There is no doubt that a personal relationship has developed and that the owner appreciates knowing the work of the CM, which makes it less “surprising” to make projects together. Owners who choose to work with CMs are also concerned about consistency and may be more averse to hidden risks.

I wonder what are the differences between a general contractor and a project manager on a house flipping project? For over 30 years, I have had the opportunity to participate in a variety of construction projects, giving me a unique understanding of the factors that lead to the best results. That`s why I`m a proponent of early involvement of an experienced site manager in projects – because I`ve seen it pay off on projects of all shapes and sizes. In comparison, a CM could be just an individual or a group of people. The main difference is that employees with a CM are usually not just employees who manage the actual building. Becoming a construction manager typically requires a bachelor`s degree (sometimes a master`s degree) in construction management, as well as several years of on-the-job training as a junior associate. Because of the way they enter the field, site managers often don`t have the trusted network of subcontractors that general contractors have. Unlike a general contractor who calculates a percentage of the total project cost, a project manager usually works for a fixed or hourly rate. This usually costs the owner the same price or a little less than the general contractor`s fee. The difference is that the project manager has no financial interest in the owner`s decisions. They do not work, like the entrepreneur, for something equivalent to a commission. Is it better to hire a construction manager or a general contractor? A project manager has experience in housing construction and, like a general contractor, remains on site throughout the project. A project manager plans subcontractors and orders materials.

Although they manage the project, they usually don`t have their own employees doing the work like general contractors do. Site managers are also involved earlier in the project, often before a design has been completed or costs can be estimated in detail. While some general contractors receive projects based on previous work or relationships with an owner or architect, general contractors must submit a competitive bid for review. The architect submits the finished plans and specifications to the general contractors invited to submit tenders on which they base their proposals. The general contractor then collects quotes from various subcontractors (usually selects the lowest quotes to keep their overall offer competitive for the owner), and then includes any additional markups and overheads in their offer. After reviewing all the proposals submitted by several general contractors, the owner usually awards the project on the basis of price and quality. For many of our clients, achieving the desired results in a large construction project is a major challenge they face on a daily basis. Coordinating the many levels of subcontractors, suppliers and front office staff is a balancing act that requires care and patience, and there are thousands of other individual factors to consider and consider. The people responsible for managing these key tasks usually occupy one of two roles: general contractor or construction manager. Although these are very different roles, the two positions work closely together and both are critical to the success of a project. In most cases, the choice is clear.

The site manager is always incentivized to maximize value and achieve your goals. As in all areas of life, comfort comes at a price. General contractors regularly charge up to 20% of the total project cost. For people who can afford it, it`s money well spent. For others, some cost-saving measures may be appropriate. The decision to hire a general contractor or site manager to conduct your orchestra is the owner`s preference or can be evaluated from project to project. Either way, it`s important that everyone works with the same sheet of music (from realistic designs and estimates) in perfect harmony with the owner (to be satisfied with their new performing arts center). .