Construction Manager vs. General Contractor: Which Do You Need?
Two of the most common ways to deliver a construction project are hiring a general contractor or a construction manager. Here is how they differ and how to choose.
The short version
A general contractor (GC) is typically hired to build a completed design, usually for an agreed price, and is responsible for delivering the construction scope. A construction manager (CM) is typically engaged earlier — often during design — to advise the owner on cost and schedule and to manage the project on the owner’s behalf, frequently with open-book transparency.
The right choice depends on how much the design is finished, how much cost transparency the owner wants, and how the owner prefers to manage risk.
General contracting: how it works
In a traditional design-bid-build arrangement, the owner completes the design with an architect, then contractors bid on the finished plans. The winning GC signs a contract — often a lump sum — and is responsible for delivering the work for that price.
The advantage is a clear, competitively priced scope and a single point of responsibility for construction. The trade-off is that the contractor usually isn’t involved during design, so constructability and cost issues surface later, sometimes as change orders.
Construction management: how it works
A construction manager is brought on earlier to represent the owner’s interests. During pre-construction, the CM provides estimating, budgeting, scheduling, and value-engineering input while the design develops. During construction, the CM manages the trades and the schedule, typically with transparent, open-book pricing.
The advantage is early cost certainty, fewer surprises, and a partner advising throughout. The trade-off is that the owner is more involved and the final price may not be fixed as early as in a lump-sum GC arrangement.
How to choose
Consider general contracting when the design is complete and you want a competitively bid, fixed price for a well-defined scope. Consider construction management when you want a contractor’s input during design, value transparency, and a partner to help control cost and schedule from the start.
Many firms — including NY Major — offer both, and can help owners decide which model fits a given project. Some projects even blend approaches, using a CM during design and then converting to a guaranteed price for construction.
This article is general information, not legal or professional advice. NYC codes and regulations change — confirm current requirements for your specific project with a qualified professional.