Very often, the difference between a general contractor (GC) and
a construction manager (CM) is not what we believe it to be. The
specific terms and conditions of the contract - not the titles
(General Contract vs. Construction Management Agreement) –
are what define the rights and obligations of the parties. In
particular, construction management can be a very malleable
concept.
CM Agreements Can Vary Greatly
First, the term "Construction Manager" embodies more
than one contract model. In a more traditional CM Agreement, the CM
is advisor to the owner, and often acts as the owner's agent;
but the owner contracts with trades and suppliers. In contrast,
there is the CM-at-risk model; a CM-at-risk takes on responsibility
for construction, and contracts with trades and suppliers directly.
It is often unclear from the document title alone whether a
particular CM Agreement is one or the other. But these different CM
arrangements are substantially different, both legally