At Klasik Construction, we recently wrapped up a meeting with an accomplished design firm that has designed several thousand restaurants. During the meeting, the owner of the design firm said something that always enjoy hearing:
"Can you guys look at some of the other projects we’re working on?"
For any sales manager, this is the perfect moment to invest time and energy into a potentially long-term relationship. It’s a signal to us that what we do, how we communicate, our core values, and how we approach a project and the stakeholders, have built enough trust to create a desire to collaborate on more projects together. We’ve created a demand based on the value we provide on every project.
The upcoming projects this particular company had for us to look at varied. Some were local to Chicago that required us to act as the General Contractor. Others were nationwide and would require us to act as a Construction Manager. Despite knowing the differences, a lot of people not in the industry probably don’t. So let’s dive into the key similarities and distinctions between these two critical roles in the construction industry.
Construction management is a comprehensive role that oversees the entire construction process—from preconstruction to project delivery.
• Broad oversight: Construction managers handle scheduling, budgeting, procurement, and quality control.
• Close collaboration: They work closely with the project owner, often acting as their representative to ensure the project is completed according to agreed-upon schedules, budgets, and specifications.
• Serve as the owner’s advocate throughout the project.
• Provide recommendations on project risks, constructability, procurement strategies, and assessment and problem-solving of unforeseen issues.
• Coordinate communication between architects, engineers, contractors, city departments, and regulatory agencies.
Construction management often involves two main contractual models:
1. Construction Management at Risk (CMAR): The CM takes on financial risk by guaranteeing costs and schedules.
2. Construction Management Agency (CMA): The CM acts solely as an advisor with no financial responsibility for outcomes.
• Construction managers play a hands-on role early on, helping with planning, budgeting, and value engineering.
• They contribute expertise to improve project feasibility and optimize costs.
General contracting focuses on the execution of the construction work based on the project’s design and specifications.
• Construction-centric: GCs oversee day-to-day activities on-site, ensuring the work aligns with the project plans and permitted documents.
• Hands-on leadership: They manage subcontractors, vendors, labor, and materials.
• Execute construction tasks with precision, adhering to deadlines and quality standards.
• Ensure site safety and compliance with regulations.
General contractors typically operate under these contract models:
1. Lump-Sum: A fixed price for completing the project.
2. Cost-Plus: Reimbursement for actual costs plus an agreed-upon management fee.
• GCs may contribute during preconstruction, primarily by estimating costs and coordinating bids.
• Their primary focus remains on preparing for the construction phase.
Both Construction Managers and General Contractors are essential players in the construction process. The choice between the two depends on your project’s scope, complexity, and your specific needs as an owner:
• Choose Construction Management if you need comprehensive oversight, early-stage involvement, and an advocate to represent your interests throughout the project.
• Choose General Contracting if your primary focus is on executing a detailed construction plan with precision and efficiency.
At Klasik Construction, we excel in both roles, offering tailored solutions to meet each of our customer’s unique needs. Whether you require a Construction Manager to guide your project from start to finish or a General Contractor to physically bring your vision to life, we’re here to deliver exceptional results.
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