When you decide to build a home, one of the first crucial decisions is choosing your construction approach. You can opt for managing the construction yourself (the “DIY” or “economic system”) or hiring a general contractor.
The “economic system” (DIY) offers some investment flexibility, as you personally select individual specialists and oversee the entire construction process. However, this also means you’re responsible for sourcing and transporting building materials, and the process demands significant personal involvement (e.g., coordinating various teams like electricians and plumbers). It also requires making dozens, if not hundreds, of ongoing decisions, leading to considerable daily stress. This is why more and more people choose to hire a general contractor, who comprehensively manages the entire investment. Why is this second option gaining popularity? Does it impact construction time? What should a contract with a general contractor include? We’ll answer these questions in this article.
What Does a General Construction Contractor Do?
The scope of services provided by a general contractor is very broad, with specific duties regulated by the contract between them and the investor. Generally speaking, a general construction contractor is responsible for the entirety of the work performed – from site preparation, through earthworks and construction, to bringing the property to the desired final standard.
Why Sign a Contract with a General Contractor?
Few people today have enough free time to take on the demanding task of overseeing a home construction project. This is the main argument for hiring an experienced general contractor – an all-around coordinator of the entire process. Your biggest involvement as an investor will be at the beginning of the collaboration, when terms are set and expectations for the property are defined. After that, the general contractor oversees the investment, reporting on progress. This allows you, the client, to focus on other activities without getting bogged down in daily construction matters.
A second advantage of hiring a general contractor is the guaranteed quality of workmanship. A reputable general contractor works with trusted construction teams, often having completed many projects with them, ensuring their professionalism. There’s a misconception that general contractors supposedly cut corners on labor and materials to increase profits. Such an approach would be very short-sighted, as they stake their own reputation on the outcome – the finished property. And in the construction industry, especially among larger entities specializing in general contracting, reputation is a key competitive advantage, particularly in a market like Croatia.
The third benefit of such collaboration is reduced construction time. If you work with an experienced general contractor who sticks to deadlines and knows the local Croatian market – meaning they have their own trusted teams and a network of suppliers who deliver materials on time – it’s natural that the entire process will run much more smoothly than if an individual investor tried to coordinate everything themselves. This would require extensive research in the areas mentioned above, and even then, there’s no guarantee of finding reliable teams. There’s also the risk that fast, on-schedule progress would only happen if individual contractors were “monitored” daily, which means lost time and the need for construction knowledge (to verify both pace and reliability of work). So, how long does it take to build a house with a general contractor? Bringing a property built using traditional masonry technology (known for its solidity and durability) to a developer standard should take a maximum of 12 months. The best general contractors, depending on the complexity of the building, can even shorten this time to 8-10 months.
Contract with a General Contractor – What Should It Include?
When it comes to home construction, a contract is an essential element without which no one would imagine starting cooperation with any contractor today. It’s certainly easier to sign one contract with a general contractor than a series of agreements with individual teams or specialists (especially since some might push for “cash in hand” work). So, what should such a contract contain?
Generally speaking, it should cover all matters regulating the cooperation with the general contractor regarding the execution of construction works. The most important is defining the detailed scope of work to be performed and the conditions for its execution (including the type of materials to be used). It should also include:
- The rights and obligations of each party, including penalties for non-compliance.
- Financial terms, including payment schedules and any security provisions.
- Conditions for potential withdrawal from the contract.
As you can see, the decision to sign a contract with a general contractor brings a number of benefits. An investor saves time and stress, gaining certainty that an experienced team is overseeing the entire project, ensuring high quality and timely execution – which is by no means an easy task when coordinating multiple construction teams and processes. The relief from purchasing materials and arranging their transport is also invaluable. It may even turn out that working with a general contractor is not significantly more expensive than building independently using the “economic system,” where finding suitable professionals, negotiating material prices, and potential lost earnings due to time spent on the construction site generate considerable costs that are not immediately apparent. Furthermore, a general contractor also provides guarantees and warranties for various elements of the property, offering you long-term peace of mind.
