General contractor or separate trades: which contracting model pays off for renovation and remodelling?

When a single overall contract pays off, when awarding trades separately is cheaper and where the interface costs are hidden — with an honest look at a third model.

Planning

By Artem Kozlovskyi, Owner ·

If you are renovating a flat, refurbishing a bathroom or remodelling commercial space, you have to make an early decision that has more influence on cost and schedule than any choice of materials: how will the work be contracted? In principle, there are two models — everything to a general contractor, or each trade separately. In between lies a third model, which we offer ourselves. This article compares all three, including the cases in which our model is not the cheapest solution.

Model 1: separate trade contracts

With separate contracting, the client concludes a separate contract with each tradesperson: painter, tiler, plumber, floor layer, plasterer, demolition contractor. Each one quotes, each one invoices, each one is liable for their own work.

The advantages: For each trade, you can compare quotes and choose the cheapest or the best provider. There is no surcharge for an overarching organisation. If you have plenty of experience or employ your own site manager, you keep full control.

The disadvantages: Coordination lies with the client. Who comes when, who waits for whom, who disposes of whose rubble, who is responsible for cleaning — someone has to organise all of this. And then there are the interfaces: is the shower leaking because the tiler's waterproofing is faulty, or because the plumber set the connection incorrectly? With separate contracts, this question is not only technical but also financial.

Model 2: general contractor

A general contractor (GC) takes on the execution of the entire project, usually for a lump-sum or global price (Pauschalpreis or Globalpreis) and with a fixed completion date. The GC awards the individual trades to subcontractors, coordinates them and is liable to the client for the work as a whole.

The advantages: one contract, one contact person, one price, one date. The GC bears the coordination and interface risk. For large projects — new builds, complete refurbishments of entire buildings, remodelling with many specialist planners — this is often the only practical approach.

The disadvantages: Coordination and the risk taken on do not come free; the GC builds in a surcharge for them, even if everything goes smoothly in the end. The client often does not see which subcontractor is actually working on site. And for smaller jobs — a bathroom, a kitchen, a vacant flat — the overhead of a GC organisation is rarely in proportion to the job.

Where the interface costs are hidden

Price comparisons between the models usually go wrong because separate contracting looks cheaper on paper. The sum of the individual quotes is lower than the GC price. What is missing from that sum are the costs that arise between the quotes:

  • Waiting times: If the tiler arrives two days late because the plumber has not finished, everything that follows shifts. For a vacant flat, that means days without rent; for commercial space, days without revenue.
  • Duplicated work: Every tradesperson covers up, every one cleans, every one travels to site. Some of this is paid for several times, and some of it is done by no one.
  • Rework: If a trade carries out its work on an unfinished substrate, it has to be redone — and the question of who pays for it ends up with the client.
  • Disputes over responsibility: When there is a defect at an interface, each firm points to the other. Until that is resolved, the defect remains.
  • Your own time: The hours a property management firm or a private individual spends phoning, scheduling and checking do not appear in any quote, but they are real.

None of these points can be reliably expressed as a percentage, because each depends on the project and the firms involved. But every one of them belongs in the comparison.

Model 3: several trades from one company

Our model sits between the two. We are not a general contractor that passes everything on to subcontractors, but a company with its own trades: renovation, plumbing, tiles and floors, remodelling and drywall, strip-out and dismantling, painting. For a bathroom, a kitchen, a vacant flat or a commercial space, that covers most of the work.

In practice, this means: one contract, one site management team, one itemised quote with materials separate from labour, an acceptance report at the end and a 5-year warranty on our work. The question of whether the shower leaks because of the waterproofing or because of the connection does not arise for you — both come from the same company. We test new plumbing pipes with a pressure and leak test and give you the test report.

We are open about what we do not do ourselves: electrical installations are carried out by a licensed electrical firm that we coordinate. Structural assessments are made by an external structural engineer. You choose kitchen units and appliances yourself from a kitchen maker or retailer, or we source them for you on request; we take care of the installation. All other interior and exterior work — from the façade to the basement — we carry out ourselves, throughout Switzerland. We do not offer roofing work.

When separate contracting is cheaper

We think it is only fair to say this too: there are cases in which separate contracting is the better choice.

  • Only one trade: If all you want is to have a flat painted, you need no coordination. What counts here is the price for that one trade — and you can compare it directly.
  • Your own site management: Property managers, general contractors or architects who provide their own site management take on the coordination anyway. For them, a single trade or a package of trades as a subcontractor is often the right arrangement.
  • Large volumes: For very large areas or series, tendering each trade separately can generate more competition than a single overall offer.
  • Trades outside our range: If the focus is on electrical work, joinery or building services, award these directly to specialists.
  • Plenty of time, little deadline pressure: If you are flexible, you can accept waiting times between the trades.

When a single overall contract pays off

Conversely, there is a lot to be said for a single overall contract when several trades interlock in a small space, when there is a fixed deadline — handover to new tenants, the opening of a shop — and when nobody on the client side can or wants to take on the coordination. Bathrooms, kitchens and vacant flats are the typical cases: plumbing, waterproofing, tiling, painting and flooring follow one another in close sequence, and every wait extends the whole job.

What to look out for with any model

  • Quotes with individually listed items, materials separate from labour
  • Start and handover dates in the contract, not ‘by arrangement’
  • A clear rule for change orders: work only after written approval
  • Who is responsible for strip-out, disposal and cleaning
  • Which test reports and certificates are available at acceptance
  • Warranty and acceptance with a written report; in construction, the SIA 118 standard is often agreed as the contractual basis for this

If you would like to know which model suits your project, we are happy to discuss it during the site visit. General contractors who want to engage us as a subcontractor for individual trades or packages will find the details on the For general contractors page. How we work is described on the About us page; remodelling with layout changes is covered under Remodelling and drywall.

This article describes typical contracting models in general terms and is not a substitute for legal or construction advice. Which arrangement suits your project depends on its scope, its schedule and your own organisation.

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