How a project is delivered affects cost, risk, speed and how much control you have. Here is a plain-language guide to the three most common models.
General contracting
One contractor signs a single contract to deliver the work, usually for a fixed or stipulated price based on completed drawings. The contractor hires and manages the trades and carries the risk of delivering for that price.
- Best for: well-defined projects where the owner wants one accountable party and price certainty
- Trade-off: design must be largely complete before pricing, and changes are priced through change orders
Construction management
The construction manager leads the build on the owner's behalf, often joining during design. Trade packages are tendered transparently, and the owner sees the pricing. Work can start before all design is finished.
- Best for: owners who want transparency on trade costs, earlier contractor input and the option to fast-track
- Trade-off: requires more owner involvement in decisions
Project management
An owner's project manager represents the owner. They do not build; they manage the consultants and contractors, control cost and schedule, and protect the owner's interests.
- Best for: owners without in-house construction expertise, larger or complex projects, and multi-site programs
- Trade-off: an additional fee, usually offset by better procurement and change control
Can you combine them?
Yes. A common path is project management during planning, then construction management or general contracting for the build. The right answer depends on how defined your project is, how fast you need it, and how involved you want to be.
This article is general information, not legal or professional advice. Requirements change, so confirm details with the relevant authority or your advisors.
