Differences between General Contractor and Real Estate Project Developer

Hello everyone,

as silent readers, we have already learned a lot from the forum, but now we have a question that we unfortunately haven't found an answer to yet. Please link the appropriate thread if this has already been discussed.

We originally wanted to build with a general contractor (single-family house, approx. 140 sqm, solid construction, 2 full floors, basement, turnkey) because we only wanted ONE contact person and contract partner. I am often abroad for weeks at a time, so we cannot take care of the construction full-time. However, during our discussions, we met a so-called "construction project developer" who is about 10-15% cheaper than the other GC offers and makes a very professional impression.

The "construction project developer" also offers us the house turnkey at a fixed price (according to the construction and service description) and takes on the role of construction manager + planning/coordination, but we would then have individual contracts with the individual trades and pay the companies directly. Do you know such a constellation? Is this "normal," or are there any significant disadvantages that we haven't considered? Especially regarding higher "supervision effort" for us?

Somehow we can't really find anything about this constellation, or are we just looking in the wrong places? ;)

THANK YOU!

Take a look at the conditions for warranty. If you have the contracts with the [Handwerksunternehmen], the principle of "one point of contact" ends here.

Take a look at the conditions for warranty. If you have contracts with the craft companies, the principle of "one point of contact" ends here.

What do you mean by "warranty"? With the general contractor, the general contractor is responsible for the warranty; with construction involving several contractors, then the individual craft companies, right?

Good morning,

So we are building in this constellation with a construction project developer.

We also have a civil engineer as a site manager as an additional trade who handles all coordination with the companies and also inspections, as well as frequent monitoring of the individual trades.

In our contracts, there is a warranty period of 5 years each. This is also stated again for each trade in the acceptance and is signed by both parties.

In the event of a warranty case, you must of course contact the respective company.

Regards

Now, in our discussions, we have met a so-called "construction project developer" who is about 10-15% cheaper than the other general contractor offers and makes a very professional impression.

I would be cautious with the price advantage. The "construction project developer" has nothing to give away either – the involved craftsmen, by the way, don't either. It is basically nothing other than an architect-designed house with individual trade assignments. In the end, the house will land at a similar price as with a general contractor, perhaps with slightly better equipment.

I would be cautious with the price advantage. The "construction project developer" also has nothing to give away - neither do the craftsmen involved, by the way. It is basically no different from an architect's house with individual trade contracts.

If the construction project developer, as the OP writes, names a fixed price, there is only a low risk on this side. The exact and detailed specification of services and contractual conditions then count.

Building can go well or badly in many different ways. The "construction project developer" constellation is basically okay. In the end, it is always the people involved and executing who decide.