Differences between General Contractor and Real Estate Project Developer

If the construction project developer names a fixed price as the OP writes, the risk on this side is only low

Well, contracts are made between the OP and the craftsmen. Therefore, the prices of the craftsmen must also be taken. If these are then significantly higher than the "fixed price" of the construction project developer, does he then pay the difference? Alternatively, no craftsmen are found or the construction project developer increases the fixed price or steps back. I always find such constructs, where a person assumes a price guarantee without being a contractual partner, at least highly questionable. He is also not the contact person for construction defects but gets off lightly. Of course, it can work well, but then why not directly with an architect without this construct?

If the construction project developer quotes a fixed price as the OP does, there is only a low risk on this side. What counts here are the exact and detailed scope of services and contract conditions.

That's exactly what I wanted to write, thanks :-) Yes, it is a fixed price and the construction/scope of services description is just as good or bad as that of our general contractor. We expect additional costs for upgrades/special requests either way, possibly somewhat lower with the project developer (since there are no general contractor surcharges).

What we still wonder is how much more "complex" such a constellation is for us ourselves? Because even with a civil engineer as site manager, there are simply 15 times as many contracts/contract partners, which currently puts us off a bit.

Well, contracts are made between the end customer and the craftsmen. Therefore, the prices of the craftsmen must also be taken. If these are then significantly higher than the "fixed price" of the project developer, does the latter pay the difference? Alternatively, you don’t find any craftsmen or the project developer increases the fixed price or opts out.

Thanks, good point. The project developer explained to us that he has power of attorney with the executing companies and therefore has also calculated the prices in their name. But yes, in the end, he is not the fool if something doesn’t fit. On the other hand, the risk is distributed among several parties and does not lie on one shoulder like with the general contractor.

The construction project developer explained to us that he has power of attorney with the executing companies and therefore also calculated the prices in their name.

Oho, power of attorney with numerous companies. So there is no choice among the companies for you. And certainly no conflict of interest for the construction project developer... It's getting windy. A rigged deal.

Oho, power of attorney at dozens of companies. So there is no choice for you regarding the companies. And certainly no conflict of interest for the property developer...

It's getting shady. A rigged deal.

Hmm, what exactly is "shady" about that? We also don't have a choice with the general contractor; the general contractor just takes the craftsmen he wants, right?! And how else is the property developer supposed to offer a fixed price if we could choose the companies ourselves afterward?!

What do you mean by "conflict of interest"? Of course he takes the craftsmen/companies from whom he gets the best price for the defined service.

We don’t have a choice with the general contractor (GC) either, the GC also just takes the craftsmen he wants?!

That’s true – but you don’t care because you have a contract with the GC. Only one point of contact from a single source. Here you conclude a contract with the project developer (who basically doesn’t bear any liability or guarantee) and then with craftsmen prescribed by him and also legally represented by him. We would call that "Kölscher Klüngel" (Cologne cronyism). What work does he do? What added value does he bring? In the end, YOU have to deal with the craftsmen. The project developer doesn’t care.

And how else should the project developer make a fixed price if we could choose the companies ourselves afterwards?!

How does he make the fixed price at all if it’s not him, but the companies who are your contractual partners? Why do you even need the project developer then? What added value does he offer compared to an architect? I don’t see him. You pay an architect and additionally the project developer – double costs. But you are only allowed to work with the craftsmen he names to you and whom he also legally represents. As I said, everything can work out well. However, I wouldn’t do it.