What are the Responsibilities of a Developer vs. Builder?

The Residential Developer and Builder both have vital responsibilities in building communities. Even though the Developer and Builder have different roles, they may be tied together as part of the same group of companies. However, if a Builder is constructing a custom home outside of a subdivision or planned community, this may require customized responsibilities. 

To help homeowners and developers understand who is responsible for what, LandPro has provided a breakdown of the obligations of the Developer and Builder when it comes to developing subdivisions and residential areas in a community.

The Developer sets the stage.

A Developer is responsible for getting the lots created and ready for building homes.

They are responsible for obtaining all necessary permissions (such as zoning) and Building permits, and often may also put in sewers, creating lots, setting up water and electrical lines, as well as creating streets and curbs.  

The Developer is responsible for deciding where the various parts of a subdivision go, such as green spaces, ensuring there are parks, ponds, walking pathways, and even boulevard trees to enhance the community's environmental wellness and walkability. In addition, they work with the local municipality to meet specific quality standards for accessibility, cleanliness, and street-related safety standards.

The residential Developer will often work with a professional planner to create the plan before engaging local municipalities and environmental authorities so that goals are aligned and the correct permissions are in place to build a community that works best for the area and the residents.

The Builder takes the project to the finished home

The Home Builder's role is the construction of the home or building.

The Home Builder manages the entire construction process from grading the property from the curb to the foundation (including grading and sodding) to building the home (such as pouring the basement, setting up the frame, adding in the plumbing, and putting up the roof). The Builder physically produces the residential buildings.

However, before they begin, the Builder works with the Developer, Architect, and Homeowner to understand the project's needs, where the Builder then decides on the various house designs to offer. They review the blueprints, ensure the land is properly graded, and ensure that all permits are in place before they begin construction. 

The Builder makes sure that all construction meets the Ontario Building Code (OBC) so that the home is safe and healthy for the new owner.

If the Builder works with a developer, the Developer will already have the municipal and environmental plans. However, when building a custom home, the Builder, homeowner, or architect will often work directly with a professional planner to get the proper permits, drawings, and studies to prepare the site for the building. Working with a professional planner can save time and money. They are a trusted advisor and can help navigate the document process and liaise with communities and local government officials to get the job done on time and within budget.

Sometimes the Developer also becomes the Builder. But that’s for another blog…