The mandate in General Contractor (GC) or in Total Contractor (TC)
The advantage of these types of mandates is to maintain a precise and unequivocal budget.
In this context, the Project Manager (PM) chooses all interior materials and fittings (kitchen, bathroom, tiles, floors, carpets, wall coverings, etc …). However, at the implementation level, the General Contractor (GC) will carry out and be responsible for all works. The client does not choose its partners and stakeholders freely. The aim of this type of mandate is to simplify and standardize all processes to optimize planning and reduce costs.
The payment of the price is fixed and is then carried out under a schedule defined according to the evolutions of the construction.
For example :
- 10% at the signature
- 10% at the opening of the construction site
- 20% at the realisation of the slab of the basement
- 20% after the installation of the frame
- 20% after the installation of the roof
- 10% at the end of interior works
- 10% at the handing over of the keys
For the GC and TC mandates, we find the detailed description of the construction with tariff specifications for important items (eg: Kitchen budget = CHF 12,500). It should be noted that any change from the initial project leads to capital gains or losses.
Funding
The banking organisation plays a very important role, because it will study the solvency of the General Contractor (accounts, balance sheets and background, etc.).
Because instalments payments are usually paid before the execution, if the General Contractor fails, a large part of the last instalment payment would probably be lost, plus the costs of researching and hiring a new construction company agreeing to complete the project. The new General Contractor will therefore be bound to open a bank account with the same organisation as the PM (Project Manager). All down payments will be paid into this parallel account and only the bank acts. The latter controls the use of funds by the GC and validates each movement of funds on the account.
The Total Contractor (TC) mandate includes all the advantages and constraints of the General Contractor (GC) but intervenes with an architect to carry out the entire construction project and especially the needs definition phase / preliminary project. The architect also executes the building permit submissions and realises the construction plans.
