Choosing Construction Management vs. a General Contractor

December 14, 2020

In recent years, clients performing construction work have been growing increasingly likely to opt for the construction management approach rather than going with a traditional general contractor.

But what exactly is the construction management approach, and what sort of benefits come with it? Here’s an overview of what you should know when considering construction management for a new home in Oklahoma City, OK.

About the approach

A construction manager works on a consultant basis with the owner of the property for a fixed fee, meaning they will have a shared interest with the owner in the budget, schedule and quality of the construction.

General contractors are usually required to submit bids against other contractors to be able to get projects, which means their primary motivation in the work that follows will be to maximize the profit margin they’re able to get. This could encourage them to use inferior materials, or to be a bit lazy with their workmanship. Ultimately, lower bidding prices may force them to drive up final prices because they get unrealistically low with how much they allot for certain items.

This means the general contractor’s interests do not necessarily align with yours. They may need to take certain risks to get the project under contract, and will then find every possible opportunity to increase profits. This is not a particularly beneficial arrangement for you, as the owner of the property.

Because construction managers work for you and share in your interest, their approach helps you feel as though you have someone on your side who will be completely up front with you about all aspects of your project. This gives the owner a greater ability to save money on the project through reduced costs.

Saving money through construction management

There are plenty of cost benefits of going with a construction management approach over a traditional general contractor approach.

A new home construction manager and the costs that come with working with one in Oklahoma City, OK do not result in additional expenses to the owner. The fees paid for construction management replace the lump sum paid for a contractor’s overhead and profit.

Upon completion of the project, the owner will only have to pay the construction manager’s fee, plus those aforementioned costs. And because the construction manager assumes the general contractor’s tasks and responsibilities for all supervision and administration, there are not additional costs for those tasks to you, the owner, because the construction manager slides into the role usually filled by the general contractor.

So ultimately, all of this means that, in working with a construction manager, you will have an advocate who’s actually working in your best interest while also keeping tabs on everything happening with the project, all while getting reduced costs for the job.

To learn more about the services provided by a new home construction manager in Oklahoma City, OK and the benefits of going with this approach, contact the experienced team at Perry House Plans today. We look forward to working with you on your project!

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