September 16, 2025

By: Justin Hernandez

The Role of a Construction Manager vs. a General Contractor

There are two very important roles when it comes to building a construction project, the construction manager, and the general contractor. These two roles often interact, overlap, and collaborate depending on the project. It is important to distinguish the two roles before choosing how to structure your project team. 

What is a Construction Manager?

A construction manager acts as the agent for the project owner. This requires planning, coordinating tasks, creating budgets, and supervising construction projects from start to finish. A construction manager is hired early on in the design process, to collaborate on the design, build a reasonable schedule, and provide insight that the owners may not be familiar with. Throughout the project, a construction manager also oversees the general contractor to confirm that they are working to meet the owners wishes. Construction managers should provide great post-construction care as well to guarantee complete client satisfaction. Hiring a construction manager will ensure that the project will be completed according to contract, on time, and importantly, under budget.

What is a General Contractor?

A general contractor is responsible for managing the actual construction process, including all subcontractors. Their job is to take the owners plans and execute them by managing the project team, procuring materials, and planning. General contractors have a lot of responsibility since they are much more hands-on with the daily progress of the project. General contractors also work closely with the architect and owner during the construction phase to ensure that problems are handled efficiently. 

Key Differences in General Contracting and Construction Management

While the roles of a general contractor and a construction manager make look similar (design approvals, project oversight, quality assurance), there are many key differences that are important to distinguish before choosing which one is right for your project. 

Owner Involvement

Hiring a construction manager allows the owners to outsource their oversight and involvement in the project.. Without hiring a construction manager, it is the owner’s responsibility to oversee the process of the entire project, while also managing the general contractor. Typically a general contractor falls under the responsibility of the construction manager, making that a big difference between the two.

Materials Procurement

While the construction manager may influence material choices during the design phase, it is the general manager’s responsibility to purchase materials for the project. The general contractor also organizes the labor dealt with the materials.

Labor Cost

A construction manager is hired by the project owner, and is billed by the hour, regardless of project changes. General contractors bid on the project and can offer different fee structures, including fixed-fee, cost plus, or time and materials. It’s ultimately up to the owner to award the project to the fee they feel is most appropriate for the scope of work.


Which One is Right for Your Project?

Every project requires a general contractor, but not every job needs a construction manager. When you have a large-scale job with a higher level of complexity, you may decide it’s in your best interest to work with a construction manager. 

Construction managers can keep the stakeholders updated on the progress while the general contractor can focus on the daily development. For example: commercial hospitality projects are usually massive, complex endeavors that require a level of detail best handled by both a construction manager and a general contractor. Other large projects requiring both are public infrastructure works, large-scale residential housing, industrial plants, and any other large commercial developments.

If you are an expert in construction management and want to be the line of communication for your general contractor, then you may not need to hire a construction manager. It all depends on how involved you want to be with your project, taking under consideration your time and the scope of the project. General contractors can complete projects without a construction manager, but their focus shifts to the projects completion, rather than adjusting for owners interests. Both roles play very important parts in developing projects, and the owner can ultimately decide who is needed for which project.

Contact NGC Group Today To Start Your Commercial Project

Our team at New Generation Construction is licensed in 24 states across the central Midwest. We partner with local subcontractors and employees in each area to ensure your project is meeting all the local safety regulations and zoning rules. Our collaborative mindset, unique solutions, and emphasis on safety, leaves our clients highly satisfied with their projects. We provide both construction management and general contracting services for your commercial projects. Contact us today to get started with your project.

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About the author

Justin Hernandez

Justin is a Nebraska native and President of NGC Group with over 20 years of experience. He founded the company in 2009 during one of the most difficult economic periods in recent memory with a goal of doing things differently in the commercial construction market. NGC has developed from a small local contractor in Nebraska to a company that now employs team members in multiples states across the region.

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