Construction Financial Glossary

Construction Manager Definition

A construction manager runs the build on site: they plan the programme, coordinate subcontractors and suppliers, keep to quality and safety standards, and watch the cost against budget. The title is used in two ways. In a contractor it is a senior site role. As a procurement route, the Client appoints a construction manager for a fee and contracts with each trade contractor directly.

Worked example

A construction manager at a £2,500,000 refurbishment reviews the job at the end of month four. The budget for mechanical and electrical is £300,000. The orders placed so far:

ItemAmount
Mechanical Subcontract order£165,000
Electrical subcontract order£118,000
Subcontract variations instructed£9,000
Committed cost£292,000
Budget remaining£8,000

Only £8,000 of budget is left with the fire alarm and controls still to buy. The manager flags a likely overspend to the commercial team now, while there is still time to change the specification or recover the cost through a Variation.

The commercial side of the role

A construction manager is not usually the QS, but their decisions are what the QS prices. Instructing extra work on site without a written instruction creates cost the contractor may not recover.

A good habit is to check the committed cost on each package every week, flag any approved change that has no variation raised yet, and agree the Cost-to-Complete forecast with the QS before it goes in the monthly report.

Prompt site records help the money side. Daywork sheets, delivery notes and photographs of changes are what turns a disputed variation into an agreed one.

Main Contractor, Project Manager, Quantity Surveyor (QS), Subcontractor, Client.

Planyard's job costing gives site and commercial teams one view of budget, committed cost and spend, so the manager sees where a package is heading before it overspends.

Frequently asked questions

We've got your questions covered. If you can't find the answer below, then feel free to contact us via the chat.

Runs the construction phase: programme, site team, subcontractors, health and safety, quality and cost. On a main contractor’s job, the construction manager usually reports to the contracts director.

Upload your project budget and follow the financial progress in real-time

No credit card required. No sales or IT support needed.