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What is a general contractor?

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

In contrast to the sole contractor, the general contractor has agreed with the owner that he may further assign (partial) services to subcontractors or sub-subcontractors. However, this does not change the fact that the general contractor is the sole contractual partner of the owner and bears full responsibility for the overall performance.

The general contractor must perform at least part of the construction services in the narrower sense within its own company; it may subcontract the remaining services. Planning services, on the other hand, are not included in the scope of the general contractor service.

In the case of a general contractor agreement, construction work is often put out to tender on a functional basis. In the case of a general contractor agreement, remuneration is regularly based on a lump sum.

 

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