An owner’s representative works only for the owner and doesn’t build anything. A general contractor builds the project, usually for one fixed price, and a construction manager manages the trades for a fee, either as the owner’s advisor (CCDC 5A) or while carrying the trade work itself (CCDC 5B). Most owners don’t choose between an owner’s rep and a builder: the owner’s rep sits on your side of the table, whichever builder model you pick.
Below: who each one works for, how each is paid, where the conflicts of interest sit, and when you need which. If you’re weighing an owner’s rep against your own project manager, see our earlier post, Owner’s Rep vs. Project Manager.
Who works for whom
The quickest way to see the difference is to follow the contracts. The builder, whether a general contractor or a construction manager, has a contract with the owner to deliver the work. The owner’s representative has a separate advisory contract with the owner and none with the builder.
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- CCDC 2: owner → general contractor (fixed price) → trades.
- CCDC 5A: owner → trades directly; construction manager administers them for a fee.
- CCDC 5B: owner → construction manager (cost plus fee, or GMP) → trades.
- In all three, the owner’s rep advises the owner and has no contract with the builder.
Owner’s rep vs general contractor: the key differences
The general contractor builds. Under a CCDC 2 stipulated price contract, the owner and the general contractor agree one fixed price for the whole project. The contractor hires the trades, runs the site and carries the risk of its own costs. That price certainty is the main attraction, but it depends on a complete design. Every change after signing is priced by the contractor, which is where owners lose control.
The owner’s rep represents you. An owner’s representative manages the project on the owner’s behalf: budget, schedule, design coordination, procurement, change orders and reporting. They review the contractor’s schedule and pricing with the same information the contractor has, but with the owner’s interests in mind. They don’t hold trade contracts, so they have no margin to protect on the work.
| Owner’s rep | General contractor | Construction manager | |
|---|---|---|---|
| Works for | The owner only | Itself, under its contract with the owner | The owner, as advisor (5A) or builder (5B) |
| Builds anything? | No | Yes | 5A: no, manages trades. 5B: yes |
| How paid | Fee: % of cost, lump sum, hourly or hybrid (typically 1–5% of construction cost) | One fixed price (stipulated sum) | Fee plus the cost of the work; 5B can add a guaranteed maximum price |
| Holds trade contracts | No | Yes | 5A: owner does. 5B: CM does |
| Main conflict to watch | None with the builder, if independent | Earns more on changes and claims | Fee can grow with cost unless capped |
| Best when | You need someone on your side across design, cost and schedule | Design is complete and you want price certainty | You need early contractor input or a fast-track start |
Where the construction manager fits
A construction manager comes in earlier than a general contractor, often during design, to advise on cost, constructability and sequencing. In Canada, the standard forms are:
- CCDC 5A, CM for services. The owner holds the trade contracts directly. The construction manager acts as the owner’s limited agent, administering those contracts for a fee, while the owner pays the costs.
- CCDC 5B, CM for services and construction. The construction manager holds the trade work and is paid the cost of the work plus a fee. It offers a guaranteed maximum price option and can convert to a stipulated price. The 2010 edition is being replaced by CCDC 5B 2025.
Our post on CM at risk vs CM for fee covers the two in detail. The point here: even a CM for services is managing the construction, not representing the owner across the whole program, such as budget approvals, consultants, internal stakeholders and the board.
How each one is paid, and why it matters
Incentives follow payment. A general contractor on a fixed price earns more by controlling its own costs and by pricing changes well. A construction manager on cost plus fee earns a fee that can grow with the cost of the work unless it is capped. An independent owner’s rep is paid by the owner alone. Industry guidance puts owner’s rep fees at roughly 1% to 5% of total construction cost; our post on what an owner’s rep costs in Ontario explains the fee models and what they save.
Watch one conflict closely: an “owner’s rep” that is also bidding on the construction, or is owned by a contractor, is not independent. Ask before you hire.
When do you need which?
In practice, owners need an owner’s rep most when they don’t have an experienced in-house capital projects team, when the program spans several projects or sites, or when the board needs independent reporting on cost and schedule.
FAQ
What is an owner's representative?
An owner's representative is an independent advisor who works only for the building owner. They manage the project on the owner's behalf across design, cost, schedule and contractors, but they don't build anything or hold trade contracts.
What is the difference between an owner's rep and a general contractor?
A general contractor builds the project, usually for a fixed price under a contract such as CCDC 2, and holds the trade subcontracts. An owner's rep doesn't build; it represents the owner and checks the contractor's schedule, cost and changes.
Is an owner's rep the same as a construction manager?
No. A construction manager manages the trades, either as an advisor for a fee under CCDC 5A or while holding the trade work under CCDC 5B. An owner's rep has no stake in the construction contracts and represents only the owner.
How much does an owner's rep cost?
Industry guidance puts owner's representative fees at roughly 1% to 5% of total construction cost, charged as a percentage, lump sum, hourly rate, per square foot or a mix of these.
The bottom line
A general contractor and a construction manager build your project. An owner’s representative makes sure it gets built the way you need, for the budget and on the schedule you approved. They aren’t alternatives; the strongest projects have both. Our owner’s rep ROI calculator shows whether the fee pays for itself on your program.
Not sure which model fits your project? Book a 30-minute call and we’ll talk it through.
Sources: CCDC 2 2020 Stipulated Price Contract (product description); CCDC 5A 2010 (product description); CCDC 5B 2010 (product description); Sage, CCDC 5A and 5B contract types; Mastt, Owner’s Representative Construction Fee. This article is general information, not legal advice.