If you are working in the project management field, you might come across two terms frequently- PMS and GMS contracts. To understand the difference between the two, it is essential to know what they stand for.

PMS Contracts

PMS stands for Project Management Services. The PMS contract is an agreement between a project owner and a project manager. In this contract, the project owner hires a project manager to handle and oversee a specific project. This contract outlines the responsibilities of the project manager and the scope of the project.

Under the PMS contract, the project manager has the authority to manage the project from start to finish. The project manager is responsible for managing the budget, timelines, and resources of the project. The project owner provides the necessary resources, and the project manager manages them.

GMS Contracts

GMS stands for General Management Services. In a GMS contract, the project owner hires a general manager to manage the entire project. The general manager is responsible for managing the project from start to finish.

Under the GMS contract, the general manager has the authority to manage every aspect of the project, including hiring contractors, managing budgets, and creating timelines. The general manager is also responsible for ensuring that the project is completed on time and within budget.

The main difference between PMS and GMS Contracts

The main difference between PMS and GMS contracts is the level of authority given to the project manager or general manager. Under the PMS contract, the project manager handles and oversees the project’s day-to-day activities, while the project owner retains the ultimate decision-making authority.

In contrast, under the GMS contract, the general manager has complete authority over every aspect of the project from start to finish. The project owner does not have a say in the day-to-day decisions, but the general manager is responsible for reporting back to the project owner.

Which Contract is Right for You?

Choosing between a PMS and GMS contract depends on the scope and size of your project. If your project is small or has several stakeholders, it might be best to go for a PMS contract. On the other hand, if your project is large and complex, a GMS contract might be more suitable.

In Conclusion

In summary, PMS and GMS contracts are two types of contracts that project owners can use to manage their projects. While both contracts have their pros and cons, it is essential to choose the right one for your project’s scope and size. An experienced project manager can help you decide which contract is best for your project.