Anyone who wants to build a house but does not want to deal with the planning and implementation can hand over responsibility to a developer. The developer procures the land on behalf of the owner, plans the construction of the house and coordinates the construction work until the final handover of the keys. When working with a developer, builders can choose from the developer's extensive range of services. Due to the standardized construction process, developers can usually guarantee a fixed price and keep costs transparent.
If a developer is commissioned with the construction of a house, he is the owner of the property during the entire construction period and bears full responsibility for the construction of the house. The basis for this is a developer's contract, which must be certified by a notary. This usually includes a land purchase or heritable building contract for the land and a contract for work and services for the construction of the house. This "double contract" protects both contracting parties and minimizes legal complications.
During construction planning and execution, the developer commissions and pays all subcontractors and craftsmen and is responsible for financing. The advantage for the original builder is that he only pays for the services already provided by the developer. These are set out in a payment schedule drawn up by the developer. What a payment plan must look like is regulated by the Real Estate Broker and Property Developer Ordinance. Only for property owners who would like to participate creatively in the construction planning, the cooperation with a developer is not recommended. This is because the construction plan is basically fixed and carried out in a standardized manner. Special building requests are only possible in individual cases and must be paid for separately.
Source: Immowelt AG
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