Construction manager vs. general contractor: How they work

If you’re planning a large construction project, you need to coordinate with different professionals, including a general contractor (GC), a construction manager (CM), and subcontractors. The people generally in charge of managing key tasks in a project fall into two categories: construction manager vs. general contractor.

Here, we’ll explore the differences and similarities between a general contractor and a construction manager. And, how they are equally important in the construction industry. 

Who is a general contractor?

A general contractor oversees and manages day-to-day on-site operations from start to finish. They play a central role in coordinating various aspects of the construction project, including planning, organizing, and supervising the work of subcontractors, tradespeople, and other specialists involved in the construction process. 

A general contractor is generally hired after the property owner has finalized a home design by a residential architect. A competitive bidding process follows where the project owner regards at least 3 to 4 contractor bids on what the project will cost (including the overhead, profit margin, and contractor fees). And then, asks the right questions to hire the best contractor out there. 

A good contractor is responsible for ensuring that the project is completed on time, within budget, and in compliance with all relevant building codes and regulations.

What does a general contractor do?

Here are some key responsibilities of a general contractor:

• Project planning: Understanding project goals, requirements, timelines, available resources, and budget. 
• Hiring and managing subcontractors: General contractors often hire subcontractors, such as plumbers, electricians, and carpenters to perform specialized tasks. 
• Obtaining building permits and approvals: GCs are typically responsible for obtaining the necessary permits from local authorities before starting construction work. 
• Budget management: They manage the project budget. They track expenses, control costs, and make adjustments as needed to stay within budgetary limits.
• Scheduling construction tasks: GCs create and manage a construction schedule – with the sequence of tasks, project milestones, and deadlines.
• Problem-solving and safety: They address unforeseen challenges that may arise during construction. They find solutions and make decisions to keep the project on track. Moreover, they are responsible for maintaining a safe work environment on the construction site – adhering to safety protocols and regulations.
• Quality control: GCs monitor the quality of work performed by subcontractors. They ensure that work meets industry standards and specifications.
• Maintaining effective communication: General contractors serve as the main point of contact between the client, subcontractors, and other stakeholders. They provide regular updates on the progress of the project.
• Project completion and handover: Once the project is complete, the general contractor ensures that all work has been finished to the client’s satisfaction through a final inspection.

Who is a construction manager?

A construction manager specializes in planning, coordinating, and supervising various aspects of construction projects. Unlike a general contractor, a construction manager focuses more on the management and logistical aspects of the project. During the design phase, a construction manager frequently offers insights and collaborates with both the architect and the project owner. Construction managers can be employed by the client or hired by a construction management company.

Read more: How do I start a construction company

What does a contrition manager do? 

Here are some responsibilities of a construction manager:

• Project planning, budget, and cost management: Construction managers collaborate with the client and design professionals to develop project plans, project milestones, and budgets. They monitor project costs and track expenses throughout the project’s lifecycle.
• Coordination: Construction managers negotiate contracts and manage subcontractor relationships. 
• Construction permits and regulatory compliance: They help to obtain the necessary approvals and ensure that the project is in compliance with local laws. 
• Risk management and safety: Construction managers identify potential risks that could impact the project. They plan for contingencies and prioritize safety on the construction site by implementing safety protocols.
• Clear communication and reporting: Construction managers serve as a point of contact between all project stakeholders, including the client, design professionals, contractors, and subcontractors. 
• Quality control and assurance: Construction managers oversee the quality of work performed by contractors and subcontractors. They ensure that work meets the project’s specifications, industry standards, and client expectations.
• Project closeout: CMs oversee the final stages of the project, including inspections, punch lists, and final documentation. 

General contractor vs. construction manager: The differences

While there is some overlap in the duties of both construction professionals, there are key differences. Typically, a CM has a closer working relationship with the owner compared to a GC. They are often an integral part of the owner’s team rather than operating independently. Unlike a general contractor who might be driven by budget-related incentives, a construction manager usually receives compensation in the form of a fee directly from the owner.

Construction manager vs. general contractor: The similarities

Both types of professionals share a common objective: to enable a secure and efficient management of the construction project. Even though their responsibilities and financial frameworks may be different, both work toward integrating all components and design elements into the project owner’s vision and regulatory requirements. 

General contractor or construction manager? Do you need both?

Depending on their preferences, project owners might engage one or both of these professionals to oversee their projects. More often than not, the requirement depends on the size of the project. For example in large projects, the owner may want a project manager to ensure the design is in place and a good contractor to ensure that the plan is carried out correctly. 

Want help hiring the best professionals?

Hiring a contractor is one of the most important parts of a home renovation project. However, it need not be a daunting task. You cannot just rely on word-of-mouth references anymore or simply Google for applicants. There might be some really good general contractors that may not be in your direct circle or online.

And that’s why Kukun Find a Contractor has made the task of hiring easier and seamless. You can get access to the names of licensed contractors in your area who have successfully completed or are working in your neighborhood. 

The contractors are rated for their quality of work, on-time delivery, and on-budget project completion. Within a few minutes, you can shortlist the best contractors out there and steer your construction project in the right direction.

Read more: How to become a construction manager

Last thoughts

Whether you’re doing your due diligence for a new project or aspiring to enter the construction industry, you need to understand the general contractor vs. construction manager role. 

The distinction between construction manager or general contractor is not a very rigid one. Their roles can sometimes overlap. For example, there are instances when a general contractor can also assume the responsibilities of a construction manager. The bottom line is that both individuals are important parts of the organizational structure and work toward breathing life into a project.

Read more: Construction contract template

Written by Ramona Sinha. August 24, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.