What Is Construction Manager in Construction?
Definition
A construction manager (CM) is a professional or firm hired to oversee and coordinate the planning, design, and construction of a project on behalf of the owner. Construction managers can serve in an advisory capacity (CM as advisor) or take on construction risk by holding trade contracts directly (CM at-risk).
Construction management is a project delivery method that gives the owner a professional construction expert involved from early design through project completion. Unlike the traditional design-bid-build approach where the general contractor enters after design is complete, a construction manager is typically engaged during design to provide input on cost, schedule, constructability, and trade packaging.
In a CM as advisor arrangement, the construction manager provides oversight and recommendations but does not hold construction contracts. The owner contracts directly with trade contractors, and the CM manages coordination on the owner behalf. In a CM at-risk arrangement, the construction manager holds all trade subcontracts and guarantees a maximum price, functioning similarly to a general contractor but with early design involvement.
Construction managers provide pre-construction services including cost estimating, value engineering, schedule development, and constructability reviews. During construction, they manage the schedule, coordinate trades, process pay applications, and oversee quality and safety. Their early involvement often results in better cost control and fewer change orders compared to traditional project delivery.
Why It Matters
Construction managers bring professional expertise to the owner team, often resulting in better project outcomes. Their early involvement in design helps avoid costly errors and omissions. The CM at-risk model provides price certainty through a guaranteed maximum price, while the CM as advisor model gives the owner maximum control and transparency over trade costs.
How HomeFloorPlan Helps
HomeFloorPlan supports the construction manager coordination role by providing a central platform where all trades, design team members, and owner representatives can view plans, track issues, and communicate in context. The CM can monitor all project activity, identify bottlenecks, and ensure no issues fall through the cracks.
Frequently Asked Questions
What is the difference between a construction manager and a general contractor?
A general contractor is hired after design to build the project based on completed construction documents. A construction manager is typically hired during design to provide pre-construction services and early cost and schedule input. A CM at-risk holds subcontracts like a GC, while a CM as advisor does not hold construction contracts.
What is a Guaranteed Maximum Price (GMP)?
A Guaranteed Maximum Price is a contract provision in CM at-risk agreements where the construction manager guarantees that the total construction cost will not exceed a specified amount. If costs exceed the GMP, the CM absorbs the overage. If costs come in under the GMP, the savings may be shared between the owner and CM.