Developer vs Builder – What's the Difference?

Understanding the Roles

The terms "developer" and "builder" are often used interchangeably, but they represent different roles in the property development process. Understanding this distinction helps landowners, investors, and other stakeholders know what to expect from each party.

A property developer typically takes on the overall project risk, secures land, obtains planning permission, arranges finance, and coordinates the entire development process. A builder or contractor focuses on the physical construction work, following designs and specifications provided by others.

The Developer's Role

Property developers identify opportunities, acquire sites, manage the planning process, coordinate design teams, secure funding, and oversee project delivery. They take financial risk and aim to create value through the development process. Developers may work with multiple contractors and consultants to deliver schemes.

In Bridlington and East Riding of Yorkshire, developers like Chocolate Box Homes work with landowners to structure projects, manage planning applications, and coordinate the various professionals needed to bring schemes forward. The developer remains responsible for the project's overall success.

The Builder's Role

Builders and contractors focus on construction: preparing sites, building structures, installing services, and completing finishes. They work to designs and specifications provided by architects and engineers, typically under contract to the developer. Their expertise lies in construction methods, materials, and workmanship.

Builders may be main contractors who manage the entire construction process, or specialist subcontractors who handle specific trades. They are responsible for delivering work to the agreed standard, on time, and within budget, but they do not typically take on the development risk.

Risk and Responsibility

Developers take on the overall project risk: planning may be refused, costs may increase, or market conditions may change. They invest time and money upfront before construction begins. Builders take on construction risk: they must deliver work to specification, but their risk is typically limited to the construction phase and contract value.

This risk difference explains why developers often seek to secure planning permission and structure deals before committing to construction contracts. It also explains why developers may work with different contractors on different projects, selecting the most appropriate builder for each scheme.

When You Need Each

If you own land and want to develop it, you typically work with a developer who will manage the entire process. The developer will coordinate architects, planners, and builders. If you already have planning permission and designs, you might work directly with a builder, but you would then take on the developer's coordination role yourself.

For most landowners in East Riding of Yorkshire, working with a developer provides expertise across the full development process, from feasibility through to completion. This reduces risk and increases the chances of a successful outcome.

Working Together

Developers and builders work together on most residential schemes. The developer manages the project, and the builder executes the construction. Good communication and coordination between them is essential for successful delivery. Developers select builders based on: track record, capacity, pricing, and suitability for the specific scheme.

As a developer, we work with trusted contractors who understand our quality standards and approach. This partnership helps ensure schemes are delivered to the right standard, on time, and within budget.