When planning a commercial construction project, one of the first major decisions an owner faces is how to build it, and who will lead the construction effort. While the terms General Contractor (GC) and Construction Manager (CM) are sometimes used interchangeably, they describe two distinct approaches to project delivery.
Understanding the difference between a GC and a CM is essential to choosing the right delivery method for your project, and assembling the right team to make it a success.
General Contractor (GC): Traditional Design-Bid-Build
The General Contractor model is the most traditional delivery method and is typically associated with design-bid-build projects. In this model, the owner first hires an architect and design team to complete construction documents.
Once the design is complete, the project is bid out to a group of general contractors, and the lowest (or most qualified) bidder is awarded the job. The GC is responsible for construction execution, cost control, and coordination of trades.
Key characteristics of a General Contractor:
- Enters the project after design is complete
- Assumes the risk for delivering the project per the drawings/specs
- Typically has limited influence on design or early planning
- Motivated to minimize cost exposure during construction
Construction Manager (CM): Early Engagement and Collaboration
The Construction Manager model takes a different approach. Rather than waiting for design to be finalized, the CM is often brought on board during the design phase to provide early input on constructability, logistics, schedule, and cost.
There are two main types of CM contracts:
- CM at Risk (CMAR): Similar to a GC, but with early design involvement and a Guaranteed Maximum Price (GMP)
- CM as Agent (CMA): Acts more like a consultant, managing the commercial construction project process without holding subcontracts
Because the CM is engaged earlier, they can collaborate with the design team to flag potential issues, offer value engineering ideas, and create a more integrated construction strategy. This model is often referred to as construction management at risk when the CM provides both preconstruction services and assumes responsibility for delivering the work.
Key characteristics of a Construction Manager:
- Joins the project early, during design
- Provides preconstruction services: budgeting, phasing, logistics, etc.
- Works in partnership with design team and owner
- Can offer a Guaranteed Maximum Price
- More flexible and collaborative than traditional GC model
GC vs. CM: Key Differences
| Aspect | General Contractor (GC) | Construction Manager (CM) |
|---|---|---|
| When They’re Hired | After design is complete | During design phase |
| Design Involvement | Minimal | Active during design |
| Subcontractor Control | GC hires all subs | CM hires subs or manages them |
| Risk | Takes on construction risk | Shares risk via GMP or advisory model |
| Flexibility | Lower | Higher (especially in phasing and logistics) |
When to Use Which?
Choosing between a General Contractor and a Construction Manager often depends on your project type, timeline, and risk tolerance.
- General Contractor may be better suited for straightforward, well-defined projects where cost certainty is a top priority and time allows for a full design-bid-build process.
- Construction Manager is often a better fit for complex, phased, or fast-tracked projects, where early collaboration and flexibility are key to success.
How an Owner’s Project Manager Can Help
Deciding between a GC and CM model isn’t always obvious, and making the wrong choice can lead to misalignment, added costs, or missed opportunities.
That’s where an Owner’s Project Manager (OPM) comes in.
An experienced OPM helps owners evaluate their goals, project complexity, market conditions, and team dynamics to recommend the best approach. From procurement strategy to contract structure, an OPM provides the technical guidance and strategic foresight to help owners make informed decisions with confidence.
At Nautare, we guide our clients through this critical early decision-making phase, ensuring that the team they build is the right one for their project from day one.
Not sure which delivery method is right for your next project?
We’re happy to help you navigate the options and align your team for success.
