If you’re planning a commercial build, multi-family development, or large renovation in BC, you’ve likely encountered both terms: general contractor and construction manager. They sound similar, but they represent fundamentally different ways of delivering a project — with real consequences for your budget transparency, your level of control, and your exposure to risk.
What Is a General Contractor?
A general contractor (GC) takes full responsibility for delivering your project under a single contract. You agree on a price — typically either a lump sum (fixed price) or cost-plus (actual costs plus a markup) — and the GC manages everything from there. The GC hires and pays all subcontractors directly. You have no contractual relationship with the trades; your only contract is with the GC. The GC carries the risk of cost overruns on their side of the agreement.
What Is a Construction Manager?
A construction manager (CM) works as your representative — an extension of your team rather than an independent contractor. Instead of a single lump-sum contract, the CM is paid a management fee to plan, manage, and oversee the project on your behalf. Under a CM model, you hold the contracts directly with each trade. The CM procures, coordinates, and manages those trades, but the financial relationship runs through you. This structure creates full cost transparency: you see every trade’s actual price, every invoice, every budget line.
Key Differences at a Glance
| Factor | General Contractor | Construction Manager |
|---|---|---|
| Contract structure | Single contract with owner | Multiple trade contracts held by owner |
| Fee model | Lump sum or cost-plus markup | Management fee (% or fixed) |
| Price transparency | Limited — markup is built in | Full — owner sees all trade costs |
| Owner control | Lower | Higher |
| Risk allocation | GC absorbs cost risk (lump sum) | Owner absorbs cost risk |
| Best for | Smaller, well-defined projects | Complex, phased, or large projects |
When a General Contractor Makes Sense
A GC arrangement works well when the scope is fully defined before construction starts, price certainty is the priority, the project is smaller or simpler, and you don’t need ongoing visibility into trade costs and procurement.
When a Construction Manager Makes Sense
- The project is large or complex — multi-family residential, commercial mixed-use, phased industrial, or institutional work
- You want full cost transparency — you need to see where every dollar goes
- You want control over key decisions — who the trades are, what products get specified
- Schedule risk is high — a CM’s ability to overlap design and construction phases can significantly reduce the overall timeline
How Team Construction Management Operates
Team Construction Management has delivered projects across the Okanagan using a construction management model for over 45 years. Our TEAM Process — a documented, phase-by-phase management framework — guides every project from feasibility through final handover. Our team includes Gold Seal Certified project managers, trade relationships built over decades in the Kelowna market, and the capability to work across multiple contract delivery methods.
Contact Team Construction Management to discuss your project and get a clear picture of how we’d approach it.