What is a General Contractor?
A general contractor (GC) is a company that assumes full responsibility toward the client for delivering a complete project. The GC performs some work with its own resources and subcontracts the remaining services to subcontractors.
Distinction from Related Terms
| Term | Own Work | Coordination | Design |
|---|---|---|---|
| Individual contractor | All | Own only | No |
| General contractor (GU) | Partial | All trades | No |
| General manager (GÜ) | None | All trades | No |
| Design-build contractor (TU) | Partial | All trades | Yes |
| Design-build manager (TÜ) | None | All trades | Yes |
Legal Framework
Engaging a general contractor in public procurement is subject to specific rules:
- § 97(4) GWB: Principle of lot division – contracts should generally be divided into lots
- The GC model is only permissible when there are documented economic or technical reasons for combining lots
- § 5 VOB/A: Lot division for construction works – trade lots are the default
The Principle of Lot Division
SME protection is a central concern of German procurement law. Under § 97(4) GWB, contracts must generally be divided into partial and trade lots to enable small and medium-sized enterprises to access public contracts. A combined GC award requires documented justification in the procurement report.
Subcontractors in the Procurement Process
When a GC uses subcontractors, special procurement rules apply:
- Naming intended subcontractors (depending on tender documents)
- Specifying which service portions will be subcontracted
- Submitting commitment declarations from subcontractors
- For reliance on third-party capabilities: proving the subcontractor's suitability
Liability
The general contractor is liable to the client for:
- Own work: Full warranty and defect liability
- Subcontractor work: Liability as for own fault (§ 278 BGB)
- Coordination: Responsibility for timely coordination of all trades
- Overall performance: Unified warranty period for the entire project
Advantages and Disadvantages
Advantages for the client:
- Single point of contact for the entire project
- Less coordination effort
- Clear liability allocation
- Faster project delivery for complex undertakings
Disadvantages:
- Higher costs due to GC markup
- Restricted competition (fewer bidders can offer complete services)
- Conflict with the lot division principle
- SMEs excluded as main bidders
Patterno hilft
Patterno identifies both combined contracts (GC tenders) and individual trade lots for you. Our AI automatically recognizes whether a tender is awarded as a whole or in lots, and notifies you based on your service portfolio. As a general contractor, you find the right overall projects — and as a specialist, the matching lots.