Owner’s Rep vs General Contractor vs Construction Manager

A large building under construction with a tower crane on top

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.

Who contracts with whom in three common delivery models Three diagrams. In each, the owner's representative sits beside the owner as the owner's advisor and has no contract with the builder. 1: under a CCDC 2 stipulated price contract, the owner contracts with a general contractor for one fixed price, and the general contractor holds the subcontracts with the trades. 2: under CCDC 5A construction management for services, the owner holds the trade contracts directly and the construction manager manages them for a fee, with the owner paying the costs. 3: under CCDC 5B construction management for services and construction, the construction manager holds the trade work and is paid cost plus a fee, with a guaranteed maximum price option. Who works for whom Contracts and money flow in three models. The owner’s rep (orange) advises the owner in all three. 1. General contractor (CCDC 2) One fixed price; the GC holds the trade contracts Owner Owner’s rep contract General contractorstipulated price subcontracts Trades 2. CM for services (CCDC 5A) Owner holds trade contracts; CM advises for a fee Owner Owner’s rep trade contracts Construction managerfee, owner pays costs manages Trades 3. CM at risk (CCDC 5B) CM holds the trades; cost plus fee, GMP option Owner Owner’s rep contract Construction managercost + fee or GMP subcontracts Trades
Simplified. CCDC 5B 2010 is being replaced by a 2025 edition. Sources: CCDC 2 2020, CCDC 5A 2010 and CCDC 5B 2010 product descriptions (Construction Saskatchewan); Sage, CCDC 5A and 5B contract types.
View as text
  • 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 vs general contractor vs construction manager
 Owner’s repGeneral contractorConstruction manager
Works forThe owner onlyItself, under its contract with the ownerThe owner, as advisor (5A) or builder (5B)
Builds anything?NoYes5A: no, manages trades. 5B: yes
How paidFee: % 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 contractsNoYes5A: owner does. 5B: CM does
Main conflict to watchNone with the builder, if independentEarns more on changes and claimsFee can grow with cost unless capped
Best whenYou need someone on your side across design, cost and scheduleDesign is complete and you want price certaintyYou need early contractor input or a fast-track start
Owner’s rep fee range: Mastt, Owner’s Representative Construction Fee. Contract terms: CCDC 2, 5A and 5B descriptions. On narrow screens, scroll the table sideways.

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.

A yellow tower crane beside a building under construction
A building under construction (outside Canada). Photo: Frames For Your Heart on Unsplash (Unsplash Licence).

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?

Which do you need? Decision guide. If the design is complete enough to price, use a general contractor on a fixed price under CCDC 2. If you need contractor input before design is done, use a construction manager. If you want the construction manager to carry trade risk, use CM at risk under CCDC 5B with a guaranteed maximum price option; otherwise use CM for services under CCDC 5A. Whichever route you pick, an owner's representative works on the owner's side. Which do you need? Three questions pick the builder model. The owner’s rep question is separate. Is the design complete enough to price? ✓ Yes: general contractor, fixed price (CCDC 2) → No: go on Do you need contractor input before design is done? ✓ Yes: construction manager (CCDC 5A or 5B) → No: finish design, then tender Do you want the CM to carry trade risk? ✓ Yes: CM at risk (CCDC 5B, GMP option) → No: CM for services (CCDC 5A) Whichever route you pick: an owner’s rep sits on your side of the table
A simplification for early planning; your lawyer and procurement policy have the final say.

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.

← All insights

Have a program that's slipping, or about to start?

Book a 30-minute call. We'll tell you where your schedule and budget are exposed, and what an owner's rep would change, before you commit to anything.