ᐅ Have the house designed by a general contractor or an architect?

The problem with the general contractor is deciding whom to trust more. I now have two offers, and I don’t think I will request more. The difference between these alone is €30,000.

It goes without saying that I will have everything reviewed by the Private Homeowners Association.

But this decision is really difficult, as it involves a lot of money.

GManuel schrieb:
The problem with the general contractor (GC) is deciding whom to trust more. I now have 2 offers, and I don’t think I’ll get more. These differ by as much as 30,000 euros.

Of course, I will have everything checked by the Association of Private Homeowners.

But this decision-making is really difficult, since it involves a lot of money.

Often, if possible, you have to rely on the judgment of others who may already have experience with the GC or architect. In the end, the personal impression and gut feeling are what count.

In my current case, the GC is practically decided.

• Two acquaintances have built with this company in recent years.
• Another acquaintance recently received a very good offer.
• A close friend who runs a carpentry and roofing business and works with the GC has only shared positive feedback.

Whether an architect would have ultimately been a better choice will remain unknown.

Construction companies that offer turnkey homes have developed their own standardized approaches that they rarely deviate from: the structure of the basement, walls, and roof; choice of suppliers (heating, ventilation, windows, stairs, doors, plumbing, etc.); selection of tradespeople, and so on. Therefore, if you want to plan these aspects yourself, turnkey construction may not be the right choice. In addition, personal contributions are often only possible in the final finishing phases (wall and floor coverings) with turnkey offers. Last but not least, turnkey options are often more expensive than architect-designed homes. It is common for general contractors to add a 15% markup on every invoice from subcontractors. I don’t know how much coordinating tradespeople through an architect costs, but it is probably cheaper.

However, turnkey homes also have some advantages that ultimately convinced us: the concepts are well thought-out and tried-and-tested. Tradespeople working for general contractors face more performance and scheduling pressures because they want to be hired for the next project, unlike with private homeowners who usually don’t have more projects to offer after their house is built. Acquaintances have told me that it is often difficult for private homeowners to find tradespeople at all, and they frequently experience construction delays. If one trade is delayed, the others cannot start, and new appointments are only available weeks later. This creates a chain reaction of scheduling changes. Not only when the schedule slips, but also in case of construction defects, it is beneficial to have a single point of contact, so that no one can shift blame to someone else. Although turnkey construction may be more expensive, the completion date and final price are guaranteed.

For these reasons, we decided on turnkey construction.

More information on other topics can be found in our construction blog (construction company: Gemünden / location: Budenheim / homeowners: Juliane and Peter), which can be easily found via a Google search.

It was already hinted at in the posts, but I want to emphasize it explicitly:
The advantage of a general contractor (GC) lies especially in the fact that you have a fixed price for the offered service (and only for that).
With an architect, the price risk ultimately falls on you. You cannot hold anyone liable for poor cost estimation.

Whether this security is worth additional costs is something each person must decide for themselves.

jx7 schrieb:
Construction companies that offer turnkey homes have developed their own building concepts, which they follow closely and are reluctant to deviate from: the construction of the basement, walls, and roof; the choice of suppliers (heating, ventilation, windows, stairs, doors, sanitary installations, etc.); selection of tradespeople; and so on. Therefore, anyone who wants to plan these aspects themselves should avoid turnkey construction. In addition, doing some work yourself is usually only possible in the final finishing stages (wall and floor coverings) with turnkey offers. Last but not least, turnkey offers are often more expensive than architect-designed houses. A typical general contractor markup is about 15%, which the contractor adds on top of every subcontractor’s invoice. I don’t know how much coordination by an architect costs, but it is surely less expensive.

However, turnkey homes also have some advantages that ultimately convinced us: The concepts are well thought out and proven. Tradespeople face more pressure to meet performance and deadlines because they want to be hired for the general contractor’s next project, rather than a private homeowner who likely won’t have any further projects after building their house. Acquaintances have told me that private homeowners often find it difficult to find skilled tradespeople at all and frequently experience delays. When one trade falls behind schedule, the others cannot start their work, and new appointments are often only available weeks later. This creates a chain reaction of rescheduling. Not only is it beneficial to have a single point of contact if timelines slip, but also if construction problems arise, so no one can blame someone else. Although turnkey building may be more expensive, the completion date and final price are guaranteed.

For these reasons, we chose turnkey construction.

More information on other topics can be found in our building blog (Construction company: Gemünden / Location: Budenheim / Homeowners: Juliane and Peter), which can be easily found via a Google search.

On the other hand, architects are different. Of course, the bidding process works differently here, but an architect also usually has certain companies they prefer to recommend or not, depending on their experience with those firms.

The most important thing is clearly to check the experiences of others. Every general contractor (GC), architect, developer, etc., has companies they prefer to work with and others they avoid or only work with on client request. Sometimes there is a bit of insider favoritism involved, but mostly these companies have proven reliable, dependable, and competent over time. Many of the budget builders (though of course not all) regularly deliver poor workmanship or come back later with additional costs. Most architects want satisfied clients, but all of them want a straightforward and hassle-free process. This usually only works with companies that deliver quality work on time. It also works the other way around: there are many architects and developers that subcontractors don’t want to work with, either because the prices are too low or the planning and management are poor. The problem is that many GCs put their subcontractors under so much pressure that they may have to leave things unfinished if urgent issues arise. Many trades are small businesses with fewer than 20 employees, where cross-subsidizing between projects only works to a limited extent. So they definitely need some major clients to guarantee a minimum workload, but also smaller customers—not to exploit them, but simply to be reasonably paid for reasonable work. Overcharging doesn’t work because people usually get multiple quotes these days. If you don’t have to calculate almost break-even, you might even take a few extra minutes and do the job properly (yes, this is quite common!). Also, some contractors are annoyed that they have to earn their money through “extra services.” Many GCs negotiate with their subs on the premise that certain tasks must be done for a set price, while for extras X and Y you get to charge more. In the end, the GC probably gets his money this way, but the tradesperson is always seen as the bad overcharger, while the GC collects extra fees and is happy about it.

Ultimately, the price difference probably isn’t huge. The GC earns more on the trades because he skims off the top, and this also allows him to push the subs more. A good architect, on the other hand, might know good and affordable tradespeople and possibly provide a smoother process, even if it takes the client a bit more time.

There are also significant differences among architects. First, most architects have a particular style or preferences. When I was younger, my father and I often visited new housing areas and could easily tell which houses came from architect X or Y. Ideally, they should still implement your ideas, but every house also reflects a bit of the architect’s personal imprint. So take a look at houses they have designed beforehand. Also, every extra feature will cost money when working with an architect. No matter how you build, a simple rectangular house with a pitched roof will generally be the most affordable.

Second, there is often a big difference between an architect’s planning and their construction supervision. Some architects are excellent planners but terrible at site management or construction supervision. Others are the opposite. Their drawings might be standard or require caution to avoid a poorly executed home, but they are perfect site managers and ensure everything goes smoothly.

This shows that you need to carefully consider all available options and look for experiences. See who is working in your area and who is building with whom. Even a layperson can often tell something about how people work, who they work with, their demeanor, the equipment used, etc. You will also meet homeowners who usually speak quite frankly about how well or poorly things went with certain parties.