ᐅ Differences Between General Contractor and Project Developer

Hello everyone,

as silent readers, we have already learned a lot from the forum, but now we have a question we haven’t been able to find an answer to yet. Please feel free to link the appropriate thread if this has already been discussed.

We originally planned to build with a general contractor (single-family home, about 140sqm (1506 sqft), solid construction, 2 full floors, basement, turnkey), since we wanted to have only ONE contact person and contractual partner. I often spend weeks abroad, so we can’t manage the construction full-time. However, during our discussions, we met a so-called "building project developer," who is about 10-15% cheaper than the other general contractor offers and leaves a very professional impression.

The "building project developer" also offers us the house turnkey at a fixed price (according to the construction and service specifications) and takes on the construction management role plus planning/coordination, but we would have individual contracts with the separate trades and pay the companies directly. Are you familiar with this arrangement? Is this "normal," or are there any significant disadvantages we might not have considered? Especially regarding a higher "supervision effort" on our part?

We somehow can’t really find anything about this kind of setup, or are we just looking in the wrong places? 😉

THANKS to all of you!

Take a look at the warranty conditions. If you have contracts with the individual trade companies, the concept of "a single point of contact" ends here.

hampshire schrieb:
Take a look at the warranty terms. If you have contracts with the individual trades, the “single point of contact” approach no longer applies.

What do you mean exactly by "warranty"? In a general contractor setup, the general contractor is responsible for the warranty, but when working with multiple contractors, each trade company is responsible, right?

Hello,

We are building in this setup with a project developer.

Additionally, we have a structural engineer acting as the site manager, who coordinates with the contractors, handles inspections, and frequently supervises the various trades.

Our contracts include a warranty period of 5 years. This is also specified separately for each trade during the handover and signed by both parties.

In case of warranty issues, you will need to contact the respective company directly.

Best regards

Markuss85 schrieb:
Now, during our discussions, we met a so-called "building project developer" who is about 10-15% cheaper than the other general contractor (GC) offers and gives a very professional impression.

I would be cautious about the price advantage. The "building project developer" does not give anything away for free – neither do the involved tradespeople. It is basically no different from an architect-designed house with individual trade contracts.
In the end, the house will cost roughly the same as with a GC, but perhaps with slightly better fittings.

nordanney schrieb:
I would be cautious about the price advantage. The "building project developer" is not giving anything away – and neither are the craftsmen involved. It is basically no different from an architect-designed house with separate trade contracts.

If the building project developer, as the OP writes, names a fixed price, there is only a low risk on this side. Then the exact and detailed scope of services and contract conditions are what matter.

Building can go well or badly in many different ways. The configuration of a "building project developer" is basically acceptable. In the end, it always depends on the people involved and carrying out the work.