But what`s the difference? Is one more expensive than the other? Experienced? Professional? The general contractor is usually a person or company that manages the day-to-day activities on the construction site. They are the main entity responsible for the actual construction of the building. They have their own employees who serve as project managers or foremen with workers working on projects themselves or employing a variety of specialized subcontractors. As a rule, for large commercial projects, different subcontractors perform 80-90% of the work. The general contractor acts as a project manager who coordinates the work of the subcontractors and serves as a link to communicate with the owner or architect about project activities. A construction manager usually works much more closely with the owner than a general contractor and is generally considered part of the owner`s team rather than working for themselves. Instead of being motivated by budget incentives like a general contractor, a construction manager usually receives a fee from the owner. This financial structure tends to result in less friction between owners and site managers than projects with a general contractor and a bidding system. The duties of the general contractor, as well as subcontractors, may include applying for a building permit, securing assets, providing temporary public services on site, managing personnel, disposing or recycling construction waste, monitoring schedules and cash flows, and keeping accurate records. On today`s construction site, many types of warranties are required (or may be useful).
Surety Bonds Direct is your all-in-one source of reliable warranties in the United States, whether you`re a contractor, construction manager, supplier, or any other type of construction professional. GCs and CMs have very different relationships with owners. GCs are most likely to receive new projects through tenders and are therefore third parties in a construction process that also includes the owner and design/engineering teams. The GC provides a fixed price and builds all aspects of the project included in the contract. Depending on your situation, many types of warranties may be relevant to a construction project. (Not sure what a warranty is or why you need it? Check out our basics summary on our What is a warranty?) page. General contractors and construction managers may have to deal with some or all of these bonds. Some of the most common types include: You`ll have to compare two very similar projects side by side to even hope that you can even get closer to figuring out which deal will result in a more profitable project. Even then, higher costs in both cases do not necessarily mean that one deal is better than another. It`s interesting to know that hiring a construction manager will help you get more accurate estimates. My husband and I are thinking about rebuilding our home and are looking for advice on hiring the right person for the project. I will inform him of the advantages of hiring a site manager to help him with his project.
The owner may have a bit of mental health knowing that the project manager doesn`t come up with plans or materials just to make a cut. The loyalty of the project manager is to the owner and the owner alone. That`s why you can be sure that they will keep in mind your best interests (and especially your budget). The role of a project manager is to represent the tenant throughout the expansion process, from assistance with site selection and budgeting to moving in and ongoing support. Creating a strategic plan and a full budget is a small but important part of what a project manager does. Project managers also oversee the execution of the construction project to ensure that every aspect of the project is consistent with the client`s objectives as described in the strategic plan and is implemented according to the client`s wishes. An important part of what project managers do is build the team that will complete your construction project. This team is usually made up of designers, engineers and contractors. Choosing the right team is essential to ensure the success of your project within the project`s schedule and budget. As you can imagine, the initial phase of a project management team`s work has to do with planning. An effective project manager must be able to fully understand the project outcome desired by the client, which requires close collaboration with the client to ensure that every facet of a potential project is clearly defined from the outset. This process is called the development of a strategic plan.
When creating a strategic plan, the project manager and client work together to define the project scope, desired completion schedule, and budget. CM projects usually have fewer change orders because they are involved in the project earlier. In this way, the work can continue with reduced risks and costs for the owner without delaying the start-up until the entire project is designed. It also shares the management of the unexpected project and means that all the savings go to the owner and not to the contractors. .