"Construction Manager" v. General Contractor?
Hi, Someone recommended to me that I use a Constructino Manager rather than a general contractor to save money on a near-gut renovation. Has anyone done this; can you offer pros and cons? Have any good references to pass along? So far I’ve only heard of people using GCs. Thanks!
elm_bk
in Brownstoner Renovation 13 years and 5 months ago
8
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8 replies
jackhhampton | 13 years and 4 months ago
I would like to suggest you to contact to only General Contractor instade of Contractor Manager. Because some time you have to order him for work but to http://www.createcsi.com/“> genreal contracor you need not to order them
mtadstudio | 13 years and 5 months ago
I think the real difference is in the structure of the contract. Most Construction Managers are also General Contractors. If you just want a watchdog acting on your behalf then you would hire an Owners Rep. I don’t believe that is what you are talking about. I have done many projects where the General Contractor (liscensed contractor that pulls the permits and provides insurance) works under a construction management contract AIA CMc-131\. This means that the Construction Manager is a Project manager and a site super (and sometimes laborors). The Construction manager would then hire sub-contractors to do most / all of the work. The CM process is advantagous because, as someone else noted, it is an open book process or cost-plus, meaning you, the owner, get to see all the sub-contractor bid, requests for payment etc…..This CM process can also alleviate the painful process of bidding the job and then realizing that you are way over budget. Ideally, a CM would be brought to the team early to work with the Architect to provide reference bids at a couple of different points in the design. After DD, at 50% CD and then the 100% CD bid on which your contract would reference. Look up the AIA contracts and you can see the differences.
greenmountain | 13 years and 5 months ago
You could save a lot of money if you get out of workers comp insurance. A sub that does only one trade may pay about %10 of payroll for that. A GC that does not handle tools, pays even less or nothing on him/herself. But, a firm with well supervised employees who do most of the work, yet hire one sub for a single day of work pays %20 of payroll for every employee even the one that goes for coffee. That may be why a “Construction Manager” is suggested as cheaper than a contractor, who obviously “manages” a crew. (Subs are not employees, and supervise themselves.) But, if you get out of paying workers comp, and somebody gets seriously hurt (an employee of a sub, or anybody working on the site without insurance) you might not save any money, and after selling the property to pay medical and legal bills, you might wish you had hired a licensed contractor (whatever you call them), who makes sure everybody on site is covered by workers comp. The DOB offers tracking numbers to either HIC’s (DCA license) or GC’s (DOB licence) and calls them all “GC’s” including the small ones licensed by Consumer Affairs along with PC Richards and your local bodega. The catch is the contractor on the permit must have comp. When the insurance policy expires, so does the permit. The rates I mentioned are for those who have never had a claim, and would be hire if they did. Since 4 years ago, the rates increased %100 with no leveling off in sight.
jockdeboeraia | 13 years and 5 months ago
I CM will charge a fee based on the cost of construction. They will secure several bids for each part of the project. There will still need to be a general contractor to pull the permit. DOB will not easily allow the owner to pull it. If it is minor work, sure, but anything substantial is going to kill it. I have done projects both ways and have had it work out and also end badly. Like with anything, you need to make sure whomever you use is good.
pigthree | 13 years and 5 months ago
just remember a GC’s liscense is issued by the Dept of Consumer Affairs. It is not required by the state of NY. You need it for the tracking number from the DOB (catch22), but there are ways to get it without the liscense. There is no quarentee of quality or inspection of work that comes with a GC’s liscense. Their primary concerns are over workmans comp insurance and child support.
pigthree | 13 years and 5 months ago
I think more than a few people have ended up disappointed with just a GC. A CM can manage the subs and its open book for the owner. GC is a contentious relationship from the start. Owner can get permits with proof of insurance and workmans comp. Again, all costs are real for owner with CM handling the day to day. Depending on the CM, it can be to your advantage as an architect, engineer and even the GC are not present at all times.
scleary | 13 years and 5 months ago
I always recomend to work with a good GC. You can end up with dissopointed with CM.
masterbuilder | 13 years and 5 months ago
You could have a construction manager oversee a GC instead of an architect or engineer. But only a GC can take out the permits for your renovation. So you are adding a cost. A GC such as my company has strong relationships with subcontractors. A coordinated team streamlines the process and keeps risk and costs down. I am also qualified to act as a construction manager on behalf of New York City. In that case I represent the CIty’s interests. There is still a GC. In addition the City enforces Wicks Law – which does not allow the GC to package all of the subs under them. All major subs bid competitively. What the city ends up with is a highly non-coordinated team and construction costs about 30 higher than they would be under a single contract. http://www.zdlaw.com/enews/2008-07-11-wickslaw.php