Construction Manager vs. General Contractor: What’s the Difference?

When you're planning a commercial build or major renovation, one of the first big decisions you'll face is who to hire to run the project. Two roles often come up in this process: Construction Manager (CM) and General Contractor (GC).

At first glance, they might seem like interchangeable terms—but they play very different roles in your project’s success. Understanding the difference between the two can help you choose the right partner and avoid costly confusion down the road.

What Is a General Contractor (GC)?

A general contractor is typically brought on after the design is complete. Their primary responsibility is to execute the project according to the plans and specifications.

Key Responsibilities:

• Hires and oversees subcontractors (electricians, plumbers, etc.)

• Orders materials and coordinates delivery

• Manages day-to-day construction on-site

• Ensures work complies with codes and contracts

• Often provides a fixed bid based on finalized drawings

General contractors are usually brought in through a bid process, and clients often choose the lowest bidder (though that's not always the best long-term strategy).

What Is a Construction Manager (CM)?

A construction manager is brought on much earlier—often during the design phase. They act as the owner’s representative throughout the project, focusing on project planning, cost control, and coordination.

Key Responsibilities:

• Provides cost estimates and scheduling insight during design

• Helps select and manage architects, engineers, and GCs

• Oversees the bidding process to hire subcontractors

• Coordinates all phases of construction, including permits and inspections

• Works on a fee-based model (percentage of project cost or flat rate)

Think of a CM as your strategic advisor and advocate, working to protect your time, budget, and interests every step of the way.

Side-by-Side Comparison

Role	General Contractor (GC)	Construction Manager (CM)
When They're Hired	After design is complete	During design phase
Who They Report To	Owner/client	Owner/client
Project Involvement	Construction phase only	Design through post-construction
Compensation	Lump sum/fixed bid	Flat fee or percentage of cost
Subcontractor Role	Hires and manages them	Helps choose and coordinate them
Primary Focus	Building the project	Managing the project holistically

When to Choose a Construction Manager

• You're new to construction or don’t have internal expertise

• You want help managing the budget from day one

• Your project is complex, phased, or involves multiple stakeholders

• You want more transparency in costs and decision-making

When to Choose a General Contractor

• You already have a clear design and want a hands-off build process

• You're working with a tight budget and prefer a fixed bid

• The project is relatively straightforward (e.g., small commercial build-out)

Both general contractors and construction managers bring valuable skills to a project—but they serve very different purposes. If you're looking for a hands-on partner to guide you from idea to completion, a Construction Manager might be your best ally. If you're confident in your plans and just need someone to execute, a General Contractor could be the right fit.

Contact us today for a free consultation or project review—we’ll help you get started the smart way.