Development partner or general contractor? Two ways to build on your lot
If you own a lot that could hold more than it does today, there are two common ways to get it built: partner with a developer, or hire a general contractor and act as the developer yourself. We do both, so we get asked which one is right more than almost anything else.
The short answer: it depends on how much risk, capital and time you want to put in — and how much of the upside you want to keep.
Option 1: Hire a general contractor
You own the land, you arrange the financing, and you make the decisions. The general contractor (GC) is responsible for building what has been designed and permitted — managing trades, schedule, site safety, quality and cost.
This usually fits when you:
- Want to keep the finished homes (to live in, rent or sell) and the full upside
- Have, or can arrange, construction financing
- Are comfortable making design and budget decisions along the way
What to look for in a GC:
- A valid Alberta residential builder licence (you can check any builder on the provincial public registry)
- A clear contract structure — lump-sum or cost-plus — and what each means for change orders
- Regular reporting: schedule, budget versus actual, and draw packages your lender will accept
- Experience with the building type you are planning, from duplexes to fourplexes with suites
Option 2: Partner with a developer
Here the landowner contributes the lot and the developer brings the expertise to take the project from feasibility to completion — and often helps structure financing. The partnership can take different forms, such as a joint venture or a GP/LP structure, with returns shared according to what each party contributes.
This usually fits when you:
- Have valuable land but do not want to manage a construction project
- Prefer not to carry all of the financing or construction risk yourself
- Want a share of the upside rather than simply selling the lot
Side by side
| General contractor | Development partner | |
|---|---|---|
| Who owns the project | You | Shared, per the agreement |
| Who arranges financing | You | Shared or developer-led |
| Your time commitment | Decisions throughout | Lower, mostly at key milestones |
| Risk you carry | Most of it | Shared |
| Upside you keep | All of it | Shared |
Not sure which fits?
Every lot is different — zoning, servicing, frontage and your own goals all change the answer. Tell us about your lot and we will walk you through both paths, including a first look at what could be built and roughly what it would take.