10 Tips for Comparing Construction Management and General Contracting_

1. 10 Tips for Comparing Construction Management and General Contracting Selecting between construction management and general contracting is always a decision that affects any construction project. Though both get used frequently, there are differences between them. Understanding these can help you in making the right decision for your project. Here are ten easy steps to compare construction management and general contracting. 832.610.3000 www.wyattmngt.com

2. Understand the Role of Each Construction managers and general contractors have different responsibilities. A construction manager (CM) is appointed to be in charge of the project throughout various phases of construction. They take part in all phases of the process and sometimes do not even wait to complete the process. On the other hand, a general contractor (GC) pays relatively more attention to supervising the construction work. They hire subcontractors and make sure that a project gets established as per the set plan. Compare Contract Types Construction management and general contracting involve various types of contracts. In construction management, the CM will typically enter a cost-plus deal with the owner. This means it costs you the actual price of the project and an additional charge. Contractors, on the other hand, utilize lump-sum contracts most of the time in their projects. This is where the contractor and the client negotiate a price for the whole construction project. The general contractor bears the burden if the project costs more than estimated. Look at Budget Control If you wish to have more control over the costs of your construction project, construction management could be ideal for you. Construction managers are very much involved with you throughout the construction of the project. This means you get to view how each dollar gets utilized. General contractors, however, provide a full price at first to draw from and use throughout the project. After signing the contract, certain costs are relatively inflexible. 832.610.3000 www.wyattmngt.com

3. Think About Project Involvement Think about how much time you would like to dedicate to your project. Often, in construction management, you are in many a decision. This is beneficial if you love getting more involved in the process, though it will take longer time. With a general contractor, you oversee the project and let them perform most of the work on your behalf. This can be easier if you prefer a hands- off approach. Understand Subcontractor Management Major differences exist in how construction managers and general contractors deal with subcontractors. But they do it in different ways. Construction managers directly manage several subcontractors at once. They make sure that all goes well between the different teams. Subcontractors are professionals who work for the general contractor at a client’s site and have a contract under one agreement. This can be easier, but it means you have less direct control over the subcontractors. Compare Flexibility Do you anticipate any changes in your project? As for the construction management, more flexibility is present. Since you are in the middle of the process, making the necessary changes along the course is easy. General contracting can be less flexible. Establishing the plan to execute the project and signing the contract means that it will be expensive or time-consuming to make adjustments. 832.610.3000 www.wyattmngt.com

4. Review Timeline Control Another distinguishing factor is that of timeline control. In construction management, you operate with the CM to change the schedule as required. This can assist in maintaining direction toward the project’s completion even if faced with challenges. A general contractor works with a timeline in mind. If there are any setbacks, it becomes easier to set new dates while incurring additional costs. Compare Risk Management Managing risks is a critical element of any project. Construction management involves risk distribution between you and the CM. You are involved in the decision-making process so that you can have more control over risk management. In general contracting, the general contractor tends to bear more risk. They are accountable for completing the project successfully within the set time and costs. Read More: https://medium.com/@wyattmanagement/10-tips-for-comparing-construction- management-and-general-contracting-1bf53ae5a88f 832.610.3000 www.wyattmngt.com