Differences between General Contractor and Real Estate Project Developer

  • Erstellt am 2019-02-18 08:03:48

Zaba12

2019-02-18 12:52:48
  • #1
I find it very dubious. I also don't understand how he can already tell you how you can save 10-15% compared to a [GU]. 10-15% of what? There isn't even a final amount yet.

You are now excited like crazy and are trying to defend a construct you don't understand. Respect!...and all just because this "building project developer" is enticing you with 10-15%! Have you ever questioned how it is possible that he wants to save you €50k and more around Stuttgart?
 

hampshire

2019-02-18 12:58:56
  • #2
The constellation that a construction project developer has procuration with the tradespeople involved in the construction is unusual. Naturally, the question arises as to why someone offers such an unusual constellation. "Shady" would already be a judgment; it cannot be said like that.

At first glance, it is incomprehensible to me and arouses mistrust:
1. Which tradesperson grants procuration to an external construction developer?
2. How must a trades company be positioned in the current favorable economic situation so that fixed-price calculation by a construction developer is worthwhile?
3. How certain can I be that I can assert my warranty and defect removal claims against “such a company” (answers from 1. and 2.)?
4. On whose side is the construction developer when problems arise? (With the builder, it is clear; they are on their own side. The architect usually supports the client.)

Many roads lead to a house. I would not take the path with a construction developer who has procuration with the offering tradespeople.
 

Altai

2019-02-18 13:02:03
  • #3
I also have a site manager who organizes the individual trades for me. He takes a huge load off my shoulders and also takes care of things when there are problems. Also when it comes to communication with suppliers (house connections, etc.). He also has "his" companies with whom he works a lot. However, it is different here again when the construction project developer is involved with the companies. I would say, read contracts very carefully!!
 

Markuss85

2019-02-18 13:20:32
  • #4
Thank you very much for your honest feedback!

One thing upfront, he is of course not "luring" us with -15%, but we have cost estimates from various GCs, prefab house providers, and the project developer. While the GCs, with one exception, all fall within a range of about 5%, the project developer is simply about 15% cheaper. This is explained to us by the missing GC markups and the fact that we simply have to take care of a bit more ourselves.

I at least partially know the executing companies; through the shell builder (multiple recommendations from friends/acquaintances who have built with him), we even got in touch with the project developer ;)
 

Zaba12

2019-02-18 13:47:06
  • #5
Well, if you think it's so great then go ahead :-p What’s that supposed to cost? And do you even have time for it? When I think about everything I have to do and coordinate and everything that is done behind the scenes by my construction coordinator. Wow. Coordination with the shell builder, creating the electrical planning yourself, window recesses, coordination with the energy consultant, coordination with plumbing, stair builder, window builder, carpenter/roof and much more. I enjoy it. I also have the time for it. But it is also time-consuming. I spend 2 hours actively on the construction every day and my mind never rests passively. There is no standard. Your construction developer will not give you 3-4 proposals and you choose the best one? No no, you will develop the proposals and then you will agree together. You will not be handed a finished concept to decide on. With this setup you will actively participate. It’s not just a little involvement. Therefore, it’s not for everyone.
 

Markuss85

2019-02-18 15:03:29
  • #6


Oh dear, that scares me, that's exactly what we wanted to avoid :( At least regarding the construction/performance description, it's practically the same with the general contractor and the construction developer...
 

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