What are the advantages of building with a general contractor (GC)?

Key points: Why the GU model is worthwhile

The advantages of using a general contractor can be divided into four main categories: finance, organization, time, and liability.

1. Financial security through a fixed price guarantee

Probably the strongest driver for choosing GU is money.

With the architect's model, you work with cost estimates. These are often precise (+/- 10%), but they are not a guarantee. If raw material prices rise during construction, you will incur additional costs.

One of the key advantages of a general contractor is the fixed price.

• Predictability: You sign a contract for sum X. That's the price you pay. Period.
• Risk transfer: If the concrete becomes more expensive or the excavation is more difficult than expected, this is at the expense of the general contractor's margin, not at the expense of your wallet (provided the construction specifications were precise).

This cost certainty is one of the decisive advantages of general contractors , especially for families who have to budget carefully and have no buffer for unforeseen expenses.

2. " One Face to the Customer": A single point of contact

A construction site is like a complex clockwork mechanism. If one cog jams, everything comes to a standstill.

In the classic model, you (or your architect) have to settle the dispute between the plumber and the tiler.

advantages of a general contractor become apparent :

• Coordination: The general contractor coordinates all subcontractors. You don't need to know who lays the pipes or roofs the house.
• Responsibility: For you, only the general contractor exists. If something goes wrong on the construction site, you don't have to figure out who's at fault. You call the general contractor and demand rectification. This simplified communication is one of the most welcome advantages of using a general contractor in the stressful everyday life of a construction site.

3. Adherence to deadlines and faster construction progress

Time is money – this is especially true when building, if you want to avoid the double burden of rent and construction loan interest.

The advantages of general contractors in time management are evident:

• Routine: General contractors often work with well-established teams of tradespeople. Processes are optimized, and downtime is minimized.
• Contractual penalty: General contractor (GC) contracts usually stipulate a fixed move-in date. If this date is not met, the GC often has to pay a contractual penalty.

This pressure and routine create significant advantages for general contractors in terms of construction speed. A house built by a general contractor is often completed months earlier than a custom-designed architect-built house.

4. Easier financing at the bank

If you talk to your bank, you will quickly realize that they also appreciate the advantages of using a general contractor .

Banks love security. A construction project with an open budget and many individual invoices is time-consuming for the bank to review.

A general contractor agreement with a fixed price guarantee is a "worry-free package" for the lender.

• Creditworthiness: Since the cost risk is capped, banks often assess the project risk as lower. This can facilitate loan approval or even lead to better terms.

advantages of using a general contractor extend even into the financing negotiations.

5. Warranty and liability from a single source

After moving in, the tap starts dripping or a crack appears in the plaster. Who is to blame? Was it the material? Was it the installation? Was the substrate improperly prepared?

In the individual contract model, tradespeople often blame each other. You're stuck with the damage until the culprit is found.

This is where the legal advantages of being a general contractor come into play :

• Overall liability: The general contractor is liable for the entire project. It doesn't matter to you why it's leaking. The general contractor must fix the defect.
• Warranty periods: You only have one warranty period for the entire house (usually 5 years according to SIA standards). You don't have to monitor 20 different periods.

This legal clarity is one of the advantages of a general contractor , allowing you to sleep soundly for years after moving in.

Who is this model suitable for?

The advantages of a general contractor become particularly apparent when you:

• You have little time : You are very busy with work and cannot be on the construction site every day.
• You are security-oriented : You want to know exactly what it costs and when you can move in.
• You accept standardization : You don't need an experimental one-of-a-kind, but a solid, functional house.

Of course, these advantages of a general contractor come at the cost of slightly less flexibility during the construction phase (changes are often expensive) and a certain lack of transparency regarding individual trade prices. However, for the majority of private homeowners, the advantages of a general contractor clearly outweigh the disadvantages.

Conclusion

In summary, the advantages of a general contractor lie in the significant reduction of complexity and risk for the client. You exchange the risk of awarding contracts individually for the security of a comprehensive package. Fixed-price guarantees, adherence to deadlines, and clear liability are arguments that carry considerable weight in the expensive and complex Swiss construction market. A general contractor makes construction predictable – a value that can hardly be overestimated.

If you value a stress-free process and financial planning security, the advantages of a general contractor are hard to beat. However, be sure to carefully review the building specifications to ensure the fixed price truly meets your needs.

If you are unsure whether a current general contractor offer is competitive or whether the fixed price offers the quality you expect, it is worth using Loft 's data analysis to obtain a neutral basis for comparison.

Glossary

• General contractor (GC): A construction company that undertakes all services for the construction of a building and delivers the finished work to the client at a fixed price.
• Fixed price guarantee: One of the most important advantages of a general contractor ; a contractual assurance that the construction project will be completed at a fixed price, regardless of price fluctuations in the market.
• Turnkey: Condition of the house upon handover; for general contractors, this usually means that all essential work has been completed, but is precisely defined by the building specifications.
• Subcontractors: Tradespeople (e.g. electricians) who are not directly commissioned and paid by the client , but by the general contractor.
• SIA standards: Standards of the Swiss Society of Engineers and Architects, which often serve as the basis for contracts and warranty periods and also legally framework the advantages of general contractors .