Does the Construction Manager cost the owner an additional fee as compared to a General Contractor, and how does the Construction Manager arrive at his fee?
The Construction Manager does not cost the owner any additional fees as compared to the General Construction method of contracting. When a General Contractor prepares their quotation for an owner, they take the total cost of all the subcontractors work, add to that the cost of work performed by the General Contractors forces, if any, and the cost of managing the project in-house. To this total the General Contractor adds a percentage of the cost of the entire project for their overhead and profit. Similarly, the Construction Manager arrives at a fee which will cover their in house cost for managing the project and add a percentage of the total project cost for their overhead and profit. The fee is based on the nature, duration, and projected cost of the project.
Related Questions
- Does the Construction Manager cost the owner an additional fee as compared to a General Contractor, and how does the Construction Manager arrive at his fee?
- What does ICEAS offer our project team (owner, constructor, construction manager, etc)?
- Does it cost more to hire a Construction Manager early in a project?
