Developer vs. Construction Company: What’s the Difference – and why is having both in one hand is the greatest advantage?

If you’ve ever planned a construction project in Mallorca, you’ve probably come across the terms developer and construction company. Many people use them interchangeably – but in reality, they represent fundamentally different roles with distinct responsibilities. What many don’t realize: with us, you get both from a single source – because we are both a developer and a construction company. What that means and why it’s a major advantage for your project, we explain in this article.

What Does a Developer Do?

A developer acts as the client’s representative and takes care of everything related to the construction of a property.

Typical tasks of a developer:

• Land acquisition
• Project development & planning
• Building permits & dealings with authorities
• Cost management
• Property sales (e.g., in-house projects)
• Coordination of all construction services

In short, the developer is responsible for the entire project – from the initial concept to handover of the keys.

What Does a Construction Company Do?

A traditional construction company typically handles the structural work. It executes construction services based on existing plans – commissioned by a developer, an architect, or a private client. Essentially, it is a service provider within the building process.

• Typical tasks of a construction company:
• Structural and/or interior construction
• Site management and technical execution
• Coordination of trades and subcontractors
• Quality assurance during the construction phase
• Adherence to schedules and warranty coverage

The Common Confusion – and How We Resolve It

Many prospective homeowners mistakenly believe that developers also build. But in most cases, developers hire external construction or general contractors – without having direct influence on quality or execution.

We do it differently. We combine both worlds under one roof:

• In-house architecture department
• Internal construction management and site supervision
• Our own construction crews and company
• Dedicated interior design & furnishing team

This means: we design and build – all from a single source, and at the highest level.

Who Is Legally Responsible? – The Key Differences

A crucial distinction between developer and construction company lies in their legal and financial responsibility toward the client.

The Developer Bears Full Responsibility

In a turnkey contract, the developer is the sole contractual partner of the client and is therefore responsible for:

• Meeting construction deadlines
• Proper execution of the building as per contract
• Handover of a defect-free property
• Legal warranty

As the developer realizes the entire project at its own risk, it is directly liable for any errors, defects, delays, or deviations from the plan.

The Construction Company Is Only Responsible for Its Work

A construction company, on the other hand, is usually not the contractual partner of the buyer but is commissioned by the developer or client. It is liable only for the services it directly performs – and only to its contractual partner (typically the developer). Thus, its responsibility is limited to its specific trade – not the overall project.

What Does This Mean for You as the Client?

However, if the developer also is the construction company (as we are), the responsibility is seamless – because all aspects are managed and controlled internally. There’s no shifting of blame – and no uncertainty about who is in charge.

In short: Responsibility from a single source = security from a single source.

Your Benefits When Developer and Builder Are One

Thanks to our integrated structure, you benefit in multiple ways:

• Maximum Control: We maintain quality in every phase – from planning to the final brushstroke
• No Friction Losses: No interface problems, no communication gaps – everything runs smoothly and internally
• Planning Certainty: As we build ourselves, we know all costs and processes precisely – and can act early
• Individual Adjustments: Design or construction changes can be made directly within our team
• Top Quality: With our own site managers and craftsmen, we guarantee execution down to the last detail

Conclusion: Developer & Construction Company = Your Full-Service Partner in Mallorca

The difference between a developer and a construction company is not just theoretical – it has major practical implications for your building project. With us, you get both in one hand. That means: planning, construction, design, and handover – all from a single source.You benefit from maximum transparency, security, and quality – and don’t have to worry about a thing.

Planning a Project in Mallorca?

Whether it’s a luxury villa, apartment development, or investor concept: as your reliable partner in Mallorca, we handle everything – from land acquisition to turnkey delivery.

Get in touch – we look forward to your project!