Construction manager and general contractor are two terms that are often used interchangeably but have varying meanings. Understanding the difference between the two is crucial for owners and developers. The primary difference between construction managers and general contractors is their scope of work and level of involvement.

A construction manager, whether an individual or entity, supervises the overall project development, beyond construction activities, and is involved in the early pre-construction stages of the project life cycle including assisting owners and developers with site selection, feasibility studies, entitlement planning, procuring design consultants, plan check and permitting, and prequalifying general contractors for selection.

Other functions of construction managers include:

- Baseline budget and cost analysis
- Owner/Developer development schedule
- Project team responsibility matrix
- Budget updates during plan check review cycles
- Value engineering and constructability reviews
- Send invitation to bid (ITB) to general contractors
- Team’s payment application and billing review
- Financing support and lender liaison
- General contractor change order review, negotiations, and validation
- Periodic reporting of project costs, schedule, quality, and safety conditions
- Coordinating owner furnished material deliveries

General contractors, however, will run construction-specific functions such as procurement planning, trade coordination and scheduling, managing subcontractor construction billing, ensuring construction quality compliance, and guaranteeing a safe construction jobsite for all personnel. A general contractor’s involvement in the project typically starts upon being awarded a construction contract and ends at construction final completion (with the exception of warranty work).