Construction Management and General Contracting project delivery. Which is right for my project?

Completing a renovation or building a new home is quite a financial undertaking. We understand that budgets and estimates are a major driving factor in selecting a builder.

At Gold Coast Custom Homes (GCCH), we offer two options to build and deliver your project. Construction Management (CM) and General Contracting (GC). With both CM and GC options, we first complete a thorough analysis of the design drawings and conduct a site walkthrough with all our trades and the Architect to create a comprehensive budget to build your project. Each option with us will lead to a successful building experience, but there are some distinct differences.

The differences between the CM Model and GC Model really come down to transparency and your expected involvement, as explained below.

Construction Management (CM):

• The Client is presented multiple bids from the Contractors (e.g. three carpentry bids, three electrical bids, etc.) with a narrative and recommendation from GCCH on whom may be the best fit for your project. Besides cost, we also advise on Contractor availability, past performance as it relates to schedule, and of course, quality.

• The Client makes the selection of the Contractors they would like to work with.

• The Client goes into contract directly with the Contractors, with GCCH managing the contract terms, overseeing quality control, and contract payment requests and change orders.

• There is full transparency of costs for labor and material throughout the project and all receipts and invoices are included in the monthly billing.

• Because of this transparency, for instance, if material and/or labor costs go down from the original budget when they are needed, then the savings are passed on to the Client. Likewise, if the project Scope of Work increases resulting in material and/or labor increases, Change Orders are presented for approval.

General Contracting (GC):

• The Client is presented one construction estimate from GCCH that contains bids from the Subcontractors we feel will be best suited to complete your project given expectations of both schedule and quality control.

• The only contract in play is the one between the Client and GCCH.

• Monthly accounting is simplified with the Client making only one payment to GCCH, based on percent (%) of completion and deposits on materials and labor, as reviewed and approved by the Architect.

• GCCH pays the project Subcontractors directly. Meaning the Client does not have visibility of cash flow, contract values, or the cost of materials at the micro level.

• Because the project is given as a fixed price, if initial budgeting and estimating are short, for instance, it is the responsibility of GCCH to pay any overages to secure all materials and labor required (barring any unforeseeable economic conditions such as what was experienced with COVID-19, changes to scope driven by Client and/or Architect, or project contingencies/unknowns encountered in the field).