General Contractor Vs. Construction Manager

New clients often ask this question. Casitas Builders offers both positions, and because we provide both, we are unbiased between them.

Some duties seem very similar in that they both will have a written contract with the homeowner. Both collaborate with the architect if any changes are needed and are available for job inspections by the local building and safety department. Both are involved with scheduling and monitoring the subcontractors.

Not all construction company’s structures are the same. The difference between a General Contractor (GC) and a Construction Manager (CM) is the project’s payment structure and homeowner involvement. The following is the difference for Casitas Builders, INC.

Typically, a General Contractor (GC) will “bid” the job by acquiring prices from his subcontractors based on an approved set of plans. Then a lump sum price is submitted to the homeowner. The homeowner isn’t involved in the day-to-day run of the project but schedules times to check in on the job for progress. Payments to the GC are in the form of “draws” and made payable to the GC to distribute to the subs.

A Construction Manager (CM) can be more flexible based on the homeowner’s needs. The CM contracts with the homeowner for a fixed monthly fee for services. The cost of the job and every subcontractor price is available to the homeowner for approval. It is more of an open-book method because all bids are open to the homeowner, which allows for a more hands-on approach for the homeowner. The homeowner is considered an “owner/builder.”The homeowner pays all construction costs directly to complete the project.

Which is right for you? Let’s discuss it!