A Comparative Analysis between Construction Management and General Contracting Many individuals’ and home buyers opt to construct their own home than to settle for the existing homes that are on sale. They are very much willing to deal with the cost of home building than deal with repairs and improvements of an existing house. They believe that constructing their own home is more beneficial to them and since they consider a home as their most valuable property and most important investment, they make sure that is built and made according to their preferences and choices. El Paso construction TX may involve hiring a lot of employees to make the building process a lot easier. This may involve the employment of a general contractor and a construction manager. But did you know that these two are not the same entities? Find out why in this article. General contractors are solely responsible for making the drawings and designs of the architects in reality. A construction manager is chosen based on experiences and skills prior to the completion of the drawings and outlines. He is responsible for reviewing the designs, the schedule and the budget as the design develops and established. He ensures that the schedule and budget are ready come to the time that the drawings and outlines are completed. Take a look at the comparison between construction management and general contracting in details. Objective Alignment The primary difference of a general contracting and construction management has to do with incentive performance. A general contractor’s contract is highly dependent on the final drawings to be followed in the building or construction process. When they are completed, that is the time when the contractor will establish and set a price for the project. The GC is rewarded whe4n the project costs is less than the price of the bid. The difference between the project costs and the bid price is the general contractor’s fee. This is the main reason why the GC aims to complete the project in a least cost. While He is earning, the cost for the owner is still the same, there is no additional benefit. The Owner’s objectives and the contractor’s aims are opposing elements from the start. On the other hand, construction management fee is fixed and established. There are no other opportunities for the Cm to earn more money while the owner does not save. Thus, the CM and the owner will share a common goal of getting the best and most reasonable price for the cost of the work ranging from the supplier down to the materials needed. The architect, owner, and the construction manager work hand in hand to ensure the success of the project. It is the responsibility of the construction manager to protect the Owner’s interests with the sub contractors and supplier all throughout. The errors and the problems in the GC approach are avoided in the CM approach. Early Participation The decisions made prior to the construction process produce a great impact on its success. This helps in the development of the schedule and in the allocation of the budget. During the pre-construction phase, the construction manager’s role is to provide data, recommendations and suggestions that will help the owner to create the best design and the right decisions. The construction manager may provide inputs on the following: • Estimates of the cost of work • Alternatives to materials, systems, and design • Time frame of the design and the building process • Material and equipment selections • Recommendations for subcontractors and bidding process • These are necessary for the owner’s and architect’s decision making process. With the suggestions of the CM, the owner will be able to maximize the utilization of his money helping him not to over spend and save more. The CM is also responsible for the reviewing of the design once it is done. He can provide possible solutions and alternatives to those items that he thinks are not feasible and he may also request little changes in the design that will greatly affect the ability of the project to be constructed. Access to overall costs In the CM contract, the owner will only pay those works that are already completed. Unlike in the GC contract, the contractor bids for an estimated amount of completion for scheduled works so the owner will be the one to judge if the percentage and the set value of work completion is precise and accurate without even knowing if all works are completed at the same time. The construction manger is responsible for providing the backup to substantiate and augment costs. The owner is not required to pay in case a backup cannot be provided. The listed statements and information above are just some of the many benefits of a construction management contract compared to general contracting. Knowing all these things may help you out in making your construction project a success.
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