Choosing the right construction management approach is crucial for ensuring the overall success of a construction project. The management approach you select directly impacts how well the project meets your objectives in terms of scope, quality, budget, and timeline. The choice between general contracting and construction management depends on your needs and the goals of the project.
This article will explore the key differences between general contracting and construction management, helping you choose the best approach for your project.
Understanding General Contracting
General contracting is a single entity hired to oversee and execute the construction project. The general contractor manages all aspects of the construction process, including hiring subcontractors, procuring materials, coordinating schedules, and ensuring the project is completed on time and within budget.
The process typically begins with the Project Owner or CEO developing a detailed design with specifications. These documents are then used to solicit bids from general contractors. Once a contractor is selected through a bidding process, you enter into a fixed-price contract with the general contractor. This contract outlines the scope of work, project timeline, and total cost.
One of the main advantages of general contracting is having one main point of contact who oversees the entire project. You don’t have to go back and forth between multiple people, increasing the risk of miscommunication. Additionally, a fixed-price contract offers cost certainty, as the contractor is committed to delivering the project within the agreed-upon budget.
As general contractors, LaRosa Building Group builds a project designed by an architect or engineer. We assume complete construction responsibility, hire and pay all subcontractors, ensure plans are adhered to and building codes are met, coordinate schedule and budget, and deliver a complete project.
Understanding Construction Management
Construction management, on the other hand, involves hiring a construction manager to oversee and coordinate the entire construction process on your behalf. The construction management approach involves the construction manager working as an agent or advisor to you, ensuring the project runs smoothly, on time, and within budget.
The construction management process typically begins in the early stages of project planning and design. The construction manager is brought on board to provide expertise and input during the design phase. They can help identify potential issues, optimize the design for cost-effectiveness, and ensure the project is feasible given the budget and timeline. This early involvement allows for better coordination and planning throughout the project.
Once the construction phase begins, the construction manager takes on a supervisory role, managing various aspects of the project, such as:
● Scheduling
● Quality assurance
● Communication among stakeholders
● Coordinating subcontractors and suppliers
● Procurement of materials and services
One of the key advantages of construction management is the level of flexibility and control it offers. You can be more involved in decision-making and can make changes to the project as needed without the same level of financial penalty typically associated with general contracting. Additionally, the construction manager's role as an advisor helps ensure your interests are prioritized throughout the project.
As your construction management team, LaRosa Building Group works with you to select the trade contractors, develop the budget, maintain the schedule, and construct the project safely with excellent quality.
“Our highly experienced team ensures the project is completed to your expectations. We help you make informed decisions to maximize the value of your building project,” says James LaRosa, CEO of LaRosa Groups.
Key Differences Between General Contracting and Construction Management
General contracting and construction management each have advantages and challenges. Understanding the key differences between these approaches is essential for making an informed decision that aligns with the specific needs and goals of your project.
Project Control: If you want more control over your project, choose construction management. The construction manager acts as an advisor, allowing you more control and involvement in decision-making throughout the project. A general contractor takes on most of the control, managing all subcontractors and making day-to-day decisions; you would have limited involvement once the contract is signed.
Cost Management: General contractors work under a fixed-price contract and construction managers use a more flexible approach with open-book contracts.
Flexibility: Construction management allows you to make changes during the construction process without significant financial penalties. A general contractor follows a strict plan and contract with limited room for adjustments.
Risk Management: The general contractor assumes most of the risk related to construction activities. In construction management, risk is more evenly distributed between the client and the construction manager.
Choosing the Right Approach for Your Project
Selecting the most suitable approach for your project will help you achieve your desired outcome. The decision is based on various factors that reflect the unique requirements and circumstances of your project. Here are some considerations to help you choose the right approach between general contracting and construction management.
Project Size and Complexity: General contracting is often more suitable for smaller to mid-sized projects with straightforward requirements and less complexity. Construction management can handle larger, more complex projects that benefit from the early involvement of a construction manager.
Client Expertise and Involvement: If you’re looking for a hands-off approach, general contracting is for you. Otherwise, construction management is best for people who have some construction knowledge and want to be more involved in the project.
Budget Constraints: You’re less likely to go over budget with the fixed-pricing general contracting offers. However, construction management has the potential for cost savings through competitive bidding and transparent cost tracking.
Time Requirements: General contracting has a longer overall timeline but provides clear milestones and deadlines. Construction management allows for overlapping phases, which can expedite the project timeline but requires more coordination and careful management to avoid delays.
Which is Best For You?
Choosing the right construction management approach is a critical decision that affects every aspect of your project, from budget and timeline to quality and satisfaction. Consider your unique needs before choosing an approach. It also wouldn’t hurt to consult with a professional and get their advice on whether general contracting or construction management is right for you. We would be happy to help. Reach out to our team today to get started.
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