What‌ ‌are‌ ‌The‌ Positives‌ ‌& ‌Negatives‌ ‌of‌ ‌Construction‌ ‌Managers‌ ‌vs General‌ ‌Contractors?‌

The construction manager and general contractor play a managerial role in the new construction project. In the pre-construction phase of the project, the owner hires a construction manager. Whereas the client selects the general contractor through the bidding process and participates in the construction phase. The construction manager advises the project owner and leads the team including the general contractor and design architect. 

The contractor is the person who hires and does the work themselves or others hired by them. You can hire a construction manager as an agent to manage the contractor’s work. You will always need someone to work with; therefore unless you hire workers directly there will almost always be contractors or contractors involved. For example, if you hire a general contractor in Canada, he will be responsible for all the project planning and construction work.

The advantage of having a construction manager is that they have experience working with contractors and can help you build and manage projects. If your project is complex and requires coordination between the contractor and other agencies, then you may want to consider a general contractor. 


General contractor v/s Construction management

By looking at the organizational structure, it is usually clearer that GC is a typical business entity. GC usually has its own staff supplement. Their foremen or supervisors are mainly engaged in these tasks, and according to their profession, they usually have ordinary workers, carpenters, or other skilled craftsmen.

In contrast, CM maybe just a person or a group of people. The key difference is that employees with CM usually do not serve as ordinary employees performing actual work. Instead, they will be estimators, project managers, and other personnel in finance, insurance, management, or professional occupations that play a role before, during, and after the project.

The construction manager’s job responsibilities include – 

  • Work with engineers and architects assigned to the project to ensure good progress.
  • Hire low-level managers to oversee specific parts of the project, such as pipelines
  • Create a project budget and work schedule
  • Analyze and provide guidance to colleagues on contracts or technical materials.


On the other hand, the general contractor has the following responsibilities – 

  • Check the construction drawings and contract terms to establish an appropriate bid amount to present to the client
  • Communicate with the project architect during the construction phase.
  • Hire a trusted subcontractor to handle professional work, such as plumbing or electricity.
  • Ensure that all work is completed on time and correctly

GC and CM have very different relationships with owners. GCs may obtain new projects through competitive bidding, so it will become a third party during the construction process including the owner and the design/engineering team. GC provides fixed prices and develops all aspects of the project covered in the contract. 

Construction managers are of two types-  

  1.  Owner’s agents CM – They give advice to the owner and assist him in the overall project. 
  2. General Contractors – Their way of working is different than that of others. 


The first kind of construction manager is mainly used by people and organizations because they are aware of their lack of experience in the construction industry. A good homeowner’s agent can be worth of gold, but it can also become the tip of a finger for no purpose, except trying to make the architect or contractor look bad to prove its existence. Ideally, this query will help control the design (architect) and help organize bids (contractor), but it will cost you money and add a layer.

For some of the same reasons, people and organizations generally tend to use the second type of construction manager, but this is a completely different process. The Contractor Style Construction Manager (CM/GC) can not only provide advice and supervise the work but also basically completes all the work and submits the invoice without going through the bidding process. The owner can sometimes sell such CMs to guarantee the price and risk sharing, but as he generally sets his own budget, this is basically just a real cost factor plus profit. 

People choose this system because they are concerned about their lack of construction experience and the feeling that they are allowed to choose a contractor is safer than simply using low-cost offers. This CM process has more flexibility than the traditional bidding process, but since CM/GC can make a certain percentage of profit, it can also incentivize higher costs. A good CM can work with designers (architects) to bring many benefits to the project, but the system can also create unhealthy relationships. In this case, designers and builders (architects and contractors become CM). They can cover up the mistakes and provide help to fill the pockets of others.


In all cases, the cost of the project is primarily a design factor. Both types of CMs are advertised as good for controlling and coordinating the design, but the results are mixed.

A good construction project always begins with the owner. They must be assertive and decisive about what they want and budget for. Irrespective of their decision, they need to be firm and definite so as not to lose control of the project. If you are looking for starting up with your commercial project and need a general contractor in Toronto.

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