Property Developer, General Contractor & Craftsmen: Differences & Legal Aspects

Hello everyone,

I have a few questions that might also be interesting for other builders, and I hope for your knowledge or experiences.

As far as I can see, a general contractor (GU) can take on certain construction work – such as tiling or drywall – even without special qualifications, since these trades are not subject to the master craftsman requirement. However, for craft activities that require a master craftsman, such as masonry work, the GU may only perform these if they themselves have a master title or employ a master mason in the company. Is that correct, or are there exceptions?

I am also interested in the legal situation with the developer. As I understand it, the developer is usually the builder in the legal sense. Private individuals are allowed to carry out many tasks (such as the shell construction) themselves as builders. Does this apply the same way to the developer? Or are there special rules regarding own work in construction projects?

I remember that with my brother (he built through a developer), the owners of the construction company did the masonry themselves – although I believe they did not have a master title. Is that legally permitted, or is it only "tolerated"?

And one more question about the definition of terms: Can a developer also act as a general contractor (GU) at the same time? In other industries, such as insurance, there are clear distinctions between brokers and agents. Is this regulated in the construction industry based on the business registration? Must a company be explicitly registered as a developer or as GU/GÜ, or can such designations be used simultaneously?

Thank you very much for your previous answers and your support! I would be very happy about experiences or legally secure information.

"General contractor" is not a profession, but a legal position vis-à-vis the client. A general contractor submits a total offer in response to a tender, including lots of other trades, which are then partly fulfilled by subcontractors. The executors (he, his employees, workers and subcontractors) naturally do not enjoy exemptions from potential master craftsman obligations. He himself or a licensed employee is usually a master craftsman in masonry and concrete construction, or in the case of wooden buildings, in carpentry. Any provision of services for others is commercially or freelance self-employed. A journeyman or even a layman is therefore not allowed to lay bricks on behalf of others.

A property developer is nothing more than a general contractor and client in one person. Many large general contractors have emerged according to the concept of the endosymbiotic theory, and for reasons of capacity also operate as property developers and real estate developers.

In other industries, such as insurance, there are for example clear distinctions between brokers and agents.

In insurance and financial consulting, the trend is clearly towards multiple brokers and also fee-based consulting. Even Günter Kaiser from the TV commercials of my childhood and youth is no longer an agent at ERGO. Here, the "master craftsman certificate" is §34(c) GewO.