Licensed General Contractor Vs. Construction Manager: What’s the Difference?

As a major contribution to the United States economy, the construction industry has over 7.6 million employees who create almost $1.4 trillion worth of structures annually.

When developing new buildings, homes, and structures, a common question is who they should hire to help them oversee them. You want someone thorough and experienced.

A general contractor vs construction manager, which is the right company or person to hire for the project? Also, what is the difference between them?

Here, we will explain in better detail the differences so you can better understand who can help you get the job done right.

General Contractor vs Construction Manager

You may feel like the line between GC vs CM is blurry. Both coordinate construction projects. Sometimes, a General Contractor will take on the role of a Construction Manager, too.

While there can be overlap, there are distinct differences. The key difference between them is that a General Contractor is a business entity. A Construction Manager is an individual.

Through a bidding process, you select General Contractors as a third party, whereas the company owner will employ a Construction Manager.

You hire a CM to work on a construction project from the initial design until completion. You hire a Construction Manager based on his or her qualifications.

Both roles are important to successfully complete any construction project. Now, let’s take a deeper dive into what makes them different.

General Contractor

It begins with a bidding process. Usually, the company that is both the lowest bid and is most reputable will win the bid for the project. The General Contractor must work within the budget that is projected.

If the project costs exceed their anticipation, the General Contractor handles the additional costs. If the General Contractor completes the project under budget and early, they keep the profits.

In such an atmosphere, both the owner of the project and the General Contractor need competitive pricing for a successful working relationship.

The General Contractor is not responsible for the design but for the plan. They must create a plan for the construction project from the beginning to the end. It is also the responsibility of the GC to approve and hire subcontractors and additional personnel as needed.

Construction Manager

For construction management roles, a business owner will hire the CM by evaluating their experience and credentials. It is a lot like recruiting any type of employee, except you relate it to a construction project.

A Construction Manager has a predetermined fee to work from. If they complete the project quicker than expected or if it is over budget, the fee for the Construction Manager will not change.

Construction Managers do not have to bid for a project. They can be a part of the design process. This means that they can see that they build the project according to the pre-design specifications.

Also, a Construction Manager will not be involved in the job site directly. Rather, they are like a project manager. They oversee the entire process.

Usually, a Construction Manager is one individual; however, there is such entity as a construction management service. This is an entity with a group of individuals who include project managers, estimators, and accountants.

Together, We Can Build the Future
If you want to build something great, work with Dixon Construction Partners. We are a family-run, full-service, site development and construction management company.

Dixon Construction Partners owns our own equipment. We hold Unlimited Licensed General Contractor in Florida, North Carolina, South Carolina, Tennessee, and Virginia.

You no longer need to research general contractor vs construction manager. For a successful construction project, call us at (919) 805-0778.