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Construction Management vs General Contractor: Complete 2025 Career & Industry Guide

Last Updated on October 14, 2025 by Admin

A comprehensive guide comparing construction management vs general contractor career paths, project delivery methods, salaries, and decision frameworks for 2025.

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Construction management is the umbrella term for all the steps and tasks involved in overseeing the construction of a building or other physical structure. This includes everything from contracting with vendors and managing payroll and personnel to monitoring and tracking progress.

General contractor, on the other hand, is the title given to a company that specializes in completing construction projects on behalf. Whether you’re planning to build a house on your property or need help getting started with a renovation project, it’s essential to know each approach’s basics to choose the best option.

This comprehensive guide explores both career paths and project delivery methods, providing updated 2025 data on salaries, job prospects, and decision-making frameworks for construction professionals and students considering these dynamic fields.

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What is Construction Management?

Construction management is a profession that manages construction projects. The typical construction management role includes planning, organizing, directing, and controlling the project.

Construction management also involves coordinating with other professionals, such as engineers, architects, and subcontractors. Construction management is a rapidly-growing profession.

Construction managers typically have a Bachelor’s degree in civil engineering or mechanical engineering. Some employers may also require experience in construction or contracting. Many construction management programs include courses in business administration and management.

The Bureau of Labor Statistics (BLS) projects that the number of construction managers will grow by 29% between 2014 and 2024, faster than any other profession. While most construction managers work in the construction industry, the BLS also expects government, education, and health care growth in construction management positions.

For those interested in this career path, our comprehensive guide on how to become a construction manager details the step-by-step process, from education requirements through certification and career advancement. Additionally, understanding what you can do with a construction management degree helps clarify the diverse career opportunities available in this growing field.

What is the Role of a Construction Manager?

The construction manager coordinates all aspects of the project from start to finish. This includes ensuring that all deadlines are met, that workers are adequately supervised, and that the project is completed on time and within budget.

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The construction manager may also be responsible for hiring subcontractors and vendors, overseeing workers’ safety and health, and keeping track of the project’s financial status.

Construction managers typically hold a degree in engineering or construction management. Construction managers work for large construction companies, government agencies, or private enterprises. Construction managers typically earn a salary between $60,000 and $120,000.

The construction manager is an essential team member that builds roads, bridges, and buildings. The construction manager coordinates all aspects of the project, ensuring that deadlines are met, and the project is completed on time and within budget.

Daily responsibilities of construction managers include:

  • Project Coordination: Liaising with architects, engineers, and construction project managers to ensure design intent is achieved
  • Schedule Management: Developing and maintaining project timelines, coordinating multiple trades and deliveries
  • Budget Oversight: Monitoring project costs, processing change orders, and maintaining financial controls
  • Quality Control: Conducting inspections, ensuring work meets specifications and building codes
  • Safety Compliance: Implementing OSHA construction safety standards and maintaining jobsite safety protocols
  • Team Leadership: Supervising construction superintendents and field personnel
  • Client Communication: Providing regular project updates and addressing stakeholder concerns

For detailed insights into this career path, review our comprehensive construction manager job description and explore whether construction management is a good career option for your professional goals.

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Construction Management vs General Contractor Salary: 2025 Data

If you’re weighing these career paths, compensation is likely a major consideration. The salary landscape has evolved significantly, and understanding the financial differences can help inform your career decision.

Construction Manager Salaries

Construction manager salaries have reached new heights in 2025. According to the Bureau of Labor Statistics, construction managers now earn a median annual wage of $106,980, with the top 25% earning $135,550 or more.

Entry-level construction managers typically start between $64,000-$75,000, while experienced professionals in senior roles can command $120,000-$172,000 annually. The highest earners in the field—those working in technology, energy, and healthcare construction—can exceed $188,000.

Construction managers earn significantly more in certain geographic markets. The BLS wage statistics show construction managers in New York earn a median of $156,760, while those in New Jersey make $149,900.

Massachusetts, Alaska, and Washington D.C. round out the top five. California offers strong compensation at $117,770 median, though cost-of-living adjusted figures show Hawaii and Illinois also provide attractive real wages.

General Contractor Earnings

General contractor earnings show more variability due to the entrepreneurial nature of the role. General contractor compensation varies widely, with employed general contractors averaging $86,000-$120,000 depending on the source and whether they’re salaried or running their own business.

Licensed general contractors with established businesses average $97,000, with top earners reaching $137,000-$155,000. The wide range reflects the diverse business models—some GCs work as project-based employees while others own successful contracting companies.

Professional Certifications Impact

Experience and certifications significantly boost earnings. Construction managers with a Certified Construction Manager (CCM) credential earn approximately 10% more than their non-certified peers. The CCM certification, administered by the Construction Management Association of America (CMAA), represents the only ANSI-accredited construction management certification.

The Project Management Professional (PMP) certification adds $12,000-$18,000 annually, with the Project Management Institute (PMI) reporting that certified construction professionals earn 33% higher median salaries. For construction specialists, the PMI Construction Professional (PMI-CP) offers construction-specific credentialing.

Industry Specialization & Benefits

Industry specialization matters considerably. Construction managers in information technology construction earn the highest salaries at $166,450, followed by energy and mining at $149,900, and aerospace at $129,630. Healthcare construction projects command 20-35% premiums above baseline rates, while data center construction offers similar premiums.

Beyond base salary, total compensation packages tell the full story. Construction managers receive annual bonuses averaging $23,000-$37,000, with performance-based bonuses ranging from 15-30% for professionals and 25-50% for executives. The construction industry also commonly offers profit-sharing arrangements, company vehicles or allowances, professional development funding, and retention bonuses.

Future Job Market Outlook

Looking ahead, the job market for construction managers remains robust. The BLS projects 9% job growth from 2024-2034, translating to 46,800 annual openings. This “much faster than average” growth reflects continued infrastructure investment, commercial construction demand, and an aging workforce creating advancement opportunities.

For comprehensive salary data and career progression information, explore our detailed construction and management jobs guide for 2025 market insights.

What is the Role of a General Contractor?

A general contractor is a professional contractor licensed to perform all construction work, including design, installation, and repair. A general contractor typically has a team of subcontractors who can help with specific tasks or phases of the project.

A General Contractor is a professional who specializes in the designing and construction of large, complex projects. They work with various clients, from government agencies to private businesses. General Contractors often have a degree in engineering or another related field.

They must have excellent problem-solving skills and work with a wide range of people. They must also be able to oversee the entire project from start to finish, ensuring that everything goes according to plan. The role of a General Contractor is versatile and can be very rewarding.

They can help bring new projects or facilities online quickly and efficiently, saving the client and the contractor money in the long run. A general contractor typically has a team of subcontractors who can help with specific tasks or phases of the project.

Becoming a licensed general contractor requires meeting state-specific requirements. Our comprehensive guide on how to become a general contractor details the licensing process, while understanding the various types of contractors in construction helps clarify specialization options.

Business structure and licensing requirements vary significantly by state. For example, the California Contractors State License Board (CSLB) licenses over 285,000 contractors across 45 classifications, while Virginia’s Board for Contractors has different thresholds and categories. The Associated General Contractors of America (AGC), representing 27,000+ member firms, provides resources and advocacy for the general contracting industry.

General Contractor Responsibilities

A general contractor typically has a team of subcontractors who can help with specific tasks or phases of the project. The responsibilities of a general contractor can vary depending on the project type and the contractor’s team size. Typical responsibilities include:

  • Providing project management
  • Coordinating work with other professionals, such as architects, engineers, and construction managers
  • Managing budgets and contracts
  • Maintaining equipment and property
  • Providing crew resources (e.g., labor, materials), supervising subcontractors
  • Coordinating with the client on all aspects of the project, including design, budgeting, and scheduling
  • Make sure the project is completed on time and within budget

Additional key responsibilities include:

  • Safety Compliance: Ensuring all work meets OSHA construction standards and maintaining comprehensive safety programs
  • Permit Management: Obtaining all required building permits and coordinating with local authorities
  • Quality Control: Implementing quality assurance programs and conducting regular inspections
  • Risk Management: Maintaining appropriate insurance coverage and bonding requirements
  • Financial Management: Processing payments to subcontractors, managing cash flow, and providing cost reporting
  • Change Order Management: Handling project modifications and scope changes effectively

Understanding how construction companies make money provides insight into the business side of general contracting, while exploring construction job titles and hierarchy clarifies organizational structures within contracting firms.

Construction Management vs General Contractor Pros and Cons

Understanding the advantages and disadvantages of each approach helps both construction professionals choosing career paths and owners selecting project delivery methods.

Construction Management Advantages

Construction management offers several compelling advantages. From an owner’s perspective, the CM works as an extension of their staff on a fixed fee, creating aligned interests focused on meeting schedule, budget, and quality goals rather than maximizing contractor profit.

CMs provide early involvement during the design phase, offering constructability input that prevents costly redesigns. The open-book accounting approach ensures transparent costs, with any savings reverting to the owner. This collaborative model allows flexible procurement, where owners can break projects into packages and potentially start construction before completing full design.

For construction professionals, the CM role provides steady income based on expertise rather than project outcomes, reducing financial risk compared to contracting. The advisory position offers regular interaction with diverse stakeholders and involvement throughout the project lifecycle, from design through closeout

One experienced construction manager notes the best part of the role: “the challenge of problem solving—every jobsite is different with different challenges even if you’re building the same thing.”

Construction Management Disadvantages

However, construction management has notable drawbacks. The approach demands more owner time and expertise, requiring active participation in decisions throughout the project. Without a Guaranteed Maximum Price (GMP), costs can potentially exceed estimates.

CM fees add another layer of cost on top of general contractor-level markups. The multiple-party coordination requires excellent communication skills. Don, an experienced CM, acknowledges: “Stress and maintaining a healthy work-life balance are constant battles. This career can be all-consuming if you let it.”

General Contractor Advantages

General contractors bring different strengths to projects. The fixed-price contract structure provides owners with price certainty established upfront, making budgeting straightforward. One single entity holds accountability for the entire build, simplifying communication—owners deal with one contractor rather than multiple subcontractors. This requires less owner involvement in day-to-day operations.

The established, traditional delivery method is well-understood by all parties, and GCs efficiently manage all subcontractor coordination directly.

For professionals pursuing the GC path, there’s potential for higher profit through efficient execution and the opportunity to capture cost savings. GCs maintain greater autonomy in decision-making and control over subcontractor selection. Successful general contractors can build substantial businesses—licensed general contractors with established operations average $97,000-$130,000, with top earners exceeding $137,000.

General Contractor Disadvantages

Yet the general contractor approach has significant challenges. The profit-driven model can create misaligned incentives, where GCs benefit from spending less, potentially conflicting with quality goals. Without involvement during design, projects miss valuable contractor expertise that could improve constructability.

Any changes after design completion trigger expensive change orders. Closed-book pricing means owners don’t see actual costs, and the linear design-then-build process offers less flexibility than collaborative approaches.

Career-wise, general contracting is demanding. As Jason, a CM in the energy industry shares: “The travel, long hours (I average 70-90 hours a week) and working in the elements. It can be difficult to deal with the large personalities and egos out in the industry.”

Forum discussions reveal that “construction is a tough business, hard to make decent money, hard to find decent jobs, huge up and down cycles.” The economic sensitivity means “construction is highly sensitive to fluctuations in the economy,” requiring careful financial management.

Making the Right Choice

The choice depends on project characteristics and personal preferences. Choose construction management when projects are large and complex (typically over $5 million), owners want active involvement, design flexibility is needed, multiple stakeholders require coordination, or cost transparency is a priority. Early construction input adds the most value on technically challenging projects.

Select a general contractor when design is complete and finalized, owners prefer a hands-off approach, fixed price certainty is critical, projects are relatively straightforward, or you need a single point of contact. Smaller projects under $1 million often work well with traditional GC delivery.

From a career perspective, consider construction management as a career if you value advisory relationships, enjoy collaboration across project phases, prefer predictable salary structures, and want less financial risk. Pursue general contracting if you’re entrepreneurial, prefer hands-on execution, want to build your own business, and can manage the higher financial variability.

Construction Management vs General Contractor: Direct Comparison

Construction management is a specialized field of business that coordinates and controls construction projects. In contrast, a general contractor is a broader term for any professional undertaking construction work.

Both construction management and general contractor have their unique benefits and drawbacks.

Construction management can improve communication and cooperation between different parties involved in a construction project, while the general contractors can provide more experienced manpower and expertise.

However, each has challenges that must be considered when selecting a contractor for a particular project.

When comparing construction management and general contractor services, the main difference is that general contractors are responsible for all project phases, from design through completion.

On the other hand, construction management companies typically focus on one or more project phases.

This means a construction management company will provide resources and manage project contingencies but may not be responsible for all design or procurement aspects.

In addition, general contractors typically have more significant experience and expertise than construction managers in specific areas such as contracting or material handling.

Another critical difference between construction management and general contractor services is cost. A typical project with a general contractor will cost approximately 10% more than a similar project with a construction management company.

The main reason is that general contractor typically have larger organizations with more experienced personnel who can absorb additional costs.

Overall, construction management is a more specialized field with greater control and coordination abilities. A general contractor can provide more experienced manpower and expertise but may have more difficulty communicating with all the parties involved in a construction project.

Selecting construction management or general contractor is essential for any business looking to take on a large construction project.

Key Comparison Factors

Project Control & Oversight:

  • Construction Management: Acts as owner’s representative, providing advisory services and coordination
  • General Contractor: Takes direct responsibility for all construction execution and completion

Risk Allocation:

  • Construction Management: Risk primarily remains with owner; CM provides guidance and expertise
  • General Contractor: Assumes construction risk through fixed-price or GMP contracts

Cost Structure:

  • Construction Management: Transparent, open-book accounting with CM fees typically 5-10% of construction costs
  • General Contractor: Fixed pricing with markup typically 10-20% including overhead and profit

Timeline & Scheduling:

  • Construction Management: Enables fast-track construction with overlapping design and construction phases
  • General Contractor: Sequential design-bid-build approach, typically longer overall timeline

Quality Control:

  • Construction Management: Independent quality oversight representing owner interests
  • General Contractor: Internal quality control with potential conflicts between quality and profit

For detailed comparisons of project delivery methods and their implications, explore our guide on construction project management approaches.

Understanding Construction Manager at Risk vs General Contractor

The Construction Manager at Risk (CMAR) model—also called CM/GC—represents a hybrid approach that combines elements of both construction management and general contracting, and it’s increasingly popular for complex projects in 2025.

CMAR Process & Structure

CMAR changes the traditional relationship structure. In this model, the owner hires the CM during the design phase to provide constructability reviews, cost estimates, and value engineering suggestions. The CM then establishes a Guaranteed Maximum Price (GMP) before construction begins.

Once the GMP is negotiated, the CM assumes the role of general contractor during construction, managing all subcontractors and work. Critically, the CM absorbs any costs exceeding the GMP, while the owner keeps savings if the project comes in under budget.

This approach delivers distinct advantages over traditional general contractors. The CM provides construction expertise during design—input that traditional GCs can’t offer since they’re not hired until design is complete. The owner gains cost certainty through the GMP while maintaining transparency through open-book accounting.

CMAR Implementation Phases

The CMAR process unfolds in four phases. During design consultation, the CM joins the project at approximately 30% design completion, reviewing constructability and providing cost estimates at key milestones.

In the GMP development phase, the CM creates detailed cost estimates and negotiates the guaranteed maximum price with the owner. The construction execution phase mirrors traditional general contracting, with the CM managing subcontractors and work. Finally, closeout includes final inspections, cost reconciliation, and project handover.

Cost Structures & Economics

Cost structures differ from both traditional approaches. While general contractors typically charge 10-20% markup (including 5-10% overhead and 5-10% profit), CMAR projects layer costs differently.

The CM fee ranges from 5-10% of project costs for advisory services, then subcontractors add their markups of 10-15%. On a $1 million project, a traditional GC approach might cost $1,000,000 total ($850,000 construction plus $150,000 GC markup).

The CMAR approach might total $1,009,120 ($850,000 construction, $102,000 subcontractor markups, $57,120 CM fee), but the transparency and early involvement often yield savings that offset higher apparent fees.

Ideal Project Types for CMAR

CMAR works best for specific project types. The model excels for large, complex projects exceeding $5 million, public sector projects requiring transparency, projects with uncertain scope, fast-track schedules needing early starts, and technically challenging work benefiting from contractor design input.

It’s less appropriate for small, simple projects, completely defined designs, owners wanting minimal involvement, or situations where low-bid selection is mandatory.

The key distinction from traditional general contracting lies in timing and risk allocation. Traditional GCs are hired after design, bid a fixed price, and bear all risk within that price. CMAR combines CM advisory benefits with GC risk assumption, creating a balanced approach where owners get construction expertise early while maintaining cost certainty through the GMP.

Understanding these distinctions helps in selecting appropriate project delivery methods, whether pursuing construction management careers or developing general contractor businesses.

General Contractor vs Subcontractor: Understanding the Hierarchy

Understanding the distinction between general contractors and subcontractors is essential for anyone entering the construction industry, as these roles form the backbone of project execution.

Fundamental Relationship Differences

The fundamental difference lies in contractual relationships and scope. General contractors hold direct contracts with project owners, maintaining overall project responsibility from start to finish. They oversee all aspects of construction, coordinate multiple trades, and serve as the single point of accountability to the owner. Subcontractors, conversely, contract with the general contractor—not the owner—and specialize in specific trades like electrical, plumbing, HVAC, framing, or finishing work.

Scope of Responsibilities

Responsibilities differ significantly between these roles. General contractors manage project-level concerns: obtaining permits, ensuring building code compliance, scheduling all work phases, managing the overall budget, processing payments, maintaining insurance and bonding, and providing daily site supervision. They make strategic decisions affecting the entire project and bear financial risk for overall completion.

Subcontractors focus on specialized execution within their trade. An electrical subcontractor installs electrical systems to specification, manages their own crew and equipment, procures specialty materials, and maintains work quality within their scope. They report to the general contractor, coordinate with other trades as directed, and carry trade-specific insurance and licensing. Their liability is limited to their particular work scope.

Organizational Hierarchy

The relationship hierarchy flows from owner to project completion. The owner contracts directly with the general contractor. The GC then subcontracts specialized work to trade-specific subcontractors: electrical contractors, plumbing contractors, HVAC specialists, framing carpenters, roofing contractors, concrete specialists, and finishing trades. This structure creates a single point of accountability for the owner while enabling specialized expertise for each construction component.

Financial Flow & Accountability

Financial flows reflect this hierarchy. Owners pay general contractors based on schedule of values or milestone completion. GCs then pay subcontractors from funds received, typically after subcontractors submit payment applications to the GC, which the GC includes in owner invoices. Retention is commonly held from both GC and subcontractor payments until project completion, protecting against defective work or incomplete tasks.

Liability and accountability create important distinctions. Even though subcontractors perform specific work, the general contractor remains ultimately accountable to the owner for all work quality, code compliance, and project completion. GCs are liable for subcontractor failures or defects. This responsibility explains why GCs carefully vet subcontractors through bid leveling, require proof of insurance and licensing, use well-defined contracts, implement quality control inspections, and maintain clear communication protocols.

Career Path Considerations

Understanding this relationship is crucial for career planning. Subcontracting offers a path to specialize deeply in one trade, build expertise in specific systems, and potentially grow a focused business. General contracting requires broader project management capabilities, business development skills, risk management expertise, and the ability to coordinate multiple specialized trades toward common goals.

For those exploring construction careers, review our guides on construction job titles and hierarchy and types of contractors in construction to understand various specialization paths and advancement opportunities.

Construction Manager vs Project Manager: Key Distinctions

While the terms are sometimes used interchangeably, construction managers and project managers fill distinct roles with different responsibilities, authority levels, and expertise requirements.

Core Scope & Timing Differences

The core distinction centers on scope and timing. Construction managers focus primarily on day-to-day construction operations during the building phase. They work on-site 80% of the time, directly supervising construction crews, managing subcontractor work, coordinating trade sequences, solving technical construction problems, and ensuring work meets specifications. Their expertise lies in building trades, construction methods, blueprint reading, and site logistics.

Project managers, conversely, oversee the entire project lifecycle from initial planning through closeout. Working primarily in offices (70% office, 30% site visits), PMs manage client relationships, handle overall budget and master schedule development, coordinate contract negotiations, and make strategic decisions affecting project scope and direction. Their expertise encompasses business management, stakeholder communication, financial management, and high-level problem solving.

Authority & Decision-Making Levels

Authority and decision-making levels differ substantially. Construction managers operate at mid-level management, reporting to project managers, making tactical daily decisions about work priorities, resource allocation, and immediate problem resolution. Project managers hold high-level authority, reporting directly to owners or senior management, making strategic decisions about budget allocations, scope changes, and stakeholder management.

As one industry source notes: Construction managers focus on “how to build” while project managers determine “what to build and why.” This distinction clarifies the complementary nature of these roles on complex projects.

Project Size & Team Structure

Both roles are necessary on larger projects. Small projects under $1 million often combine both functions into one person, sometimes titled “project manager” but performing CM duties. Medium projects ($1-$10 million) may have dedicated CMs and PMs, with the PM potentially overseeing multiple projects. Large projects exceeding $10 million typically require both distinct roles, sometimes with multiple CMs reporting to a single PM.

Career Paths & Qualifications

Career paths and qualifications vary. Construction managers typically progress from skilled tradesperson to foreman or construction superintendent, then to construction manager, potentially advancing to senior CM or project manager with additional education.

They need deep knowledge of building trades, construction methods, safety regulations, and crew management, often holding construction management or engineering degrees along with certifications like CCM.

Project managers usually start as assistant project managers or project engineers, advancing to PM and eventually senior PM or program manager. They require strategic planning skills, client relationship management, business acumen, and leadership capabilities, typically holding project management degrees, PMP certification, and sometimes MBAs for senior positions.

Career Transition Opportunities

The construction manager to project manager transition is possible but requires additional education, development of client-facing skills, and shift from tactical to strategic thinking. This typically takes 5-10 years of experience plus formal education (bachelor’s degree or MBA).

For those choosing between these career paths, construction management suits those who prefer hands-on involvement, site-based work, solving immediate technical challenges, and focusing on construction execution.

Project management careers appeal to those who enjoy strategic planning, client interaction, business development, and overseeing projects from concept to completion across all phases.

Both paths offer strong earning potential among the highest-paying construction jobs, with advancement opportunities into senior leadership roles within construction organizations.

Which is Better: Construction Management or General Contracting?

A few key differences between construction management and general contracting should be considered when deciding which type of contractor is best for your project.

General contractors typically have more experience with large-scale projects. This may be important if your project involves complex engineering specifications or tight deadlines.

General contractors typically have a more comprehensive range of skills and resources, including subcontractors and engineers with specialties in different construction areas. This makes them better equipped to handle unique aspects of your project.

Eventually, general contractors often have relationships with suppliers who can provide them with equipment and materials at discounted rates. This can save you money on your project budget.

The key factors to consider when choosing a contractor for your project are the specifics of your project and your budget.

A general contractor may be the best option if you are looking for a contractor with experience in complex projects or a wide range of resources and skills.

If you are looking for a more cost-effective option or only need help with specific aspects of your project, then a construction management firm may be a better fit.

Decision Framework by Project Characteristics

Choose Construction Management when:

  • Project value exceeds $5 million
  • Complex coordination between multiple stakeholders required
  • Fast-track schedule with overlapping design and construction
  • Owner wants active involvement and transparency
  • Technical complexity benefits from early contractor input
  • Public sector project requiring open-book accounting
  • Renovation or retrofit work with unknown conditions

Choose General Contractor when:

  • Complete design documents are available
  • Fixed-price certainty is priority
  • Owner prefers hands-off approach
  • Project scope is well-defined and stable
  • Traditional delivery method required by financing or regulations
  • Single point of responsibility preferred
  • Project value under $2 million

Career Path Decision Framework

Construction Management Career Suits Those Who:

  • Prefer collaborative, advisory relationships
  • Enjoy working across entire project lifecycle
  • Value stable, salaried employment structure
  • Want involvement in design and planning phases
  • Prefer lower financial risk profile
  • Enjoy problem-solving and coordination challenges

General Contracting Career Suits Those Who:

  • Are entrepreneurially minded
  • Want direct control over construction execution
  • Comfortable with higher financial risk/reward
  • Prefer building and managing their own business
  • Enjoy hands-on construction involvement
  • Want unlimited income potential through business growth

Long-Term Market Outlook

Both career paths offer excellent long-term prospects. The Bureau of Labor Statistics projects 9% growth for construction managers through 2034, while the broader construction industry continues expanding with infrastructure investment and development needs.

For comprehensive career guidance, explore our construction and management jobs overview for 2025 market insights, or review specific paths like entry-level construction management jobs for those beginning their careers.

Conclusion

This article has explored the differences between construction management and general contractor approaches from both career and project delivery perspectives. Construction management is a specialized field that focuses on coordinating the work of many contractors and subcontractors while ensuring that each project stage is completed on time and within budget. On the other hand, the general contractor specializes in direct construction execution—building projects from start to finish. Although both have valuable skills and knowledge, general contractors are typically better equipped to handle larger projects with more complex dependencies, while construction managers excel at coordination, transparency, and advisory services.

Key takeaways for 2025:

For Career Seekers: Both paths offer excellent opportunities, with construction managers earning median salaries of $106,980 and strong 9% job growth projected through 2034. General contractors face more variability but offer entrepreneurial opportunities and unlimited income potential through business ownership.

For Project Owners: Choose construction management for complex projects requiring transparency, early contractor input, and collaborative approaches. Select general contractors for straightforward projects with complete designs where fixed-price certainty and single-point accountability are priorities.

For Students: Both career paths benefit from formal education, with construction management degrees opening doors to management roles and providing advancement opportunities. General contracting offers direct entry through apprenticeships and experience, with licensing requirements varying by state.

As the construction industry evolves in 2025, both construction managers and general contractors remain in high demand, with the Bureau of Labor Statistics projecting strong growth and opportunities. Whether you’re drawn to the collaborative, advisory nature of construction management or the entrepreneurial, execution-focused world of general contracting, both paths offer rewarding careers with strong earning potential.

The key is understanding your strengths, preferences, and career goals—then pursuing the education, certifications, and hands-on experience that will set you apart in this dynamic, challenging, and ultimately fulfilling industry. With labor shortages creating abundant job openings and infrastructure investment driving demand, qualified professionals in either discipline can expect robust opportunities and competitive compensation for years to come.

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Frequently Asked Questions (FAQs)

What’s the typical cost difference between hiring a construction manager and a general contractor?

General contractors usually charge a 10–20% markup on total project costs—covering roughly 5–10% for overhead and 5–10% for profit. Construction managers typically charge a 5–10% management fee for their services, which is in addition to subcontractor markups.
For example, on a $1 million project, a GC might add around $150,000 in markup, while a CM might charge about $57,000 in fees plus $102,000 in subcontractor markups, totaling roughly $160,000. However, the CM approach often yields savings through early planning and transparency.

What do Redit discussions reveal about construction management vs. general contracting careers?

Online discussions highlight similar challenges in both roles—long work hours (70–90+ per week), high stress, and the need for experience and business acumen. Many agree that success depends more on leadership and management skills than on field labor experience. As one user puts it:
“The most successful contractors I know aren’t the best builders—they’re the best businesspeople.”
Overall, Reddit users suggest choosing the path that aligns with your interests—CM for stability and collaboration, or GC for entrepreneurship and independence.

Is construction management or general contracting a better career choice?

It depends on your goals.
Construction Management (CM): Offers stable employment, predictable salaries (median $106,980 per BLS), structured growth, and lower financial risk.
General Contracting (GC): Provides entrepreneurial freedom, hands-on project control, and higher earning potential—but with greater financial risk.
Choose CM if you prefer advisory roles and steady income; choose GC if you’re entrepreneurial and thrive on ownership.

Can a general contractor also act as a construction manager?

Yes. In the Construction Manager at Risk (CMAR) model, a professional first provides consulting services during design and later assumes the GC role after setting a Guaranteed Maximum Price (GMP). Many professionals hold both a GC license and CM certifications, allowing them to switch roles based on project delivery methods.

What education is required for each career path?

Construction Managers: Typically need a bachelor’s degree in construction management, civil engineering, or a related ACCE-accredited field.
General Contractors: Must meet state-specific licensing requirements, which often include a combination of experience, exams, and, in some states, formal education or apprenticeships.

What certifications are recommended for each path?

Construction Managers: Common credentials include the Certified Construction Manager (CCM) from CMAA, Project Management Professional (PMP) from PMI, and PMI-CP (Construction Professional).
General Contractors: Require state-issued licenses, sometimes with continuing education for renewal.
For details, see our Certified Construction Manager Guide on professional development options.

How do salary prospects compare long-term?

Both offer strong earning potential:
Construction Managers: Median salary of $106,980, with top earners exceeding $176,000.
General Contractors: Typically earn $55,000–$130,000+, but income can rise significantly with business ownership and scaling opportunities.

Which career offers better job security?

Both enjoy solid demand. The BLS projects 9% job growth for construction managers through 2034. While general contractors face business risks tied to project flow, they also have greater autonomy. The growing demand for infrastructure and development ensures steady opportunities in both career paths.

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