Construction Management

Construction Management

A Construction Manager (CM) is a professional responsible for planning, coordinating, budgeting, and overseeing a project from initial concept through completion. The CM ensures the work is executed safely, on schedule, and within budget while serving as the central point of communication between the owner, design team, and subcontractors. A CM is involved from the preconstruction phase through final close out and warranty.

Key Differences from Other Roles:

Construction managers (CMs) and general contractors (GCs) both manage building projects, but CMs provide comprehensive, collaborative oversight from early design through completion, acting as the owner’s agent. GCs focus on executing the physical construction, typically joining after design is finalized to manage subcontractors and site operations under a fixed-price contract. CM at Risk (CMAR) bridges these two roles, advising during design and transitioning to a GC role with a Guaranteed Maximum Price (GMP). CMAR brings early cost control, whereas GCs provide fixed-price bids. 

Summary of the Roles:

Construction Manager (Agent/Advisor)

  • Role: Acts as an agent for the owner throughout the project, providing oversight of the design and construction team, and lending expertise in the management of the project.

  • Engagement: Hired early, usually during the design phase.

  • Risk: No financial risk; works for a fee, and the owner holds all the subcontracts and pays all of the project costs.

  • Best for: Complex projects needing early planning, complex coordination, creative solutions, and vigilant oversight. 

Construction Manager at Risk (CMAR)

  • Role: Acts as a consultant during the design phase (like a CM) but takes on the role of General Contractor during the construction phase.

  • Engagement: Early involvement.

  • Risk: Assumes financial risk via a Guaranteed Maximum Price (GMP). If the project exceeds the value of the GMP plus approved change orders, the CMAR covers the costs.

  • Best for: Large, complex projects requiring early planning and strict cost certainty.

General Contractor (GC)

  • Role: Focuses on building the “bricks and mortar” during the construction phase.

  • Engagement: Typically hired after the design is 100% complete.

  • Risk: Takes on the risk for construction execution, schedule, and cost based often on a lump-sum bid.

  • Best for: Projects with well-detailed plans, a comprehensive budget, and a defined schedule.

When to Choose Which:

  • Hire a Construction Manager if: You need expertise during the design phase, want high transparency on costs, or have a complex project.

  • Hire a General Contractor if: You have finalized plans and want a single entity to handle the construction, logistics, and labor at a fixed price.