What is a general contractor?

As a rule, the general contractor (GC) provides all construction services for the erection of a building. In most cases, the building is constructed on a turnkey basis (turnkey construction). This form of construction contract is referred to as a type of contract for work as a general contractor agreement.

In contrast to the sole contractor, the general contractor has agreed with the client that it may subcontract (partial) services to subcontractors. However, this does not change the fact that the general contractor is the only contractual partner of the client and bears full responsibility for the overall performance.

The general contractor must provide at least part of the construction services in the narrower sense within its own company, while the remaining services can be subcontracted. Planning services, on the other hand, are not included in the scope of the general contractor’s services.

In a general contractor agreement, construction services are often tendered on a functional basis. In the case of a general contractor agreement, the remuneration is usually based on a lump sum.