General Management Contractor in Procurement Law 2026

General management contractor in procurement law: definition, distinction from the general contractor, procurement law admissibility, and particularities of design and build.

Definition: A general management contractor (Generalübernehmer, GÜ) is a contractor that takes on both the design and the construction services for a building project from a single source. It differs from the general contractor, which only delivers the construction work, and the total contractor, which likewise performs both services.

Last updated: January 2026 · Legal basis: BVergG 2018, VOB/A, VgV, BGB/ABGB, HOAI 2021

What is a general management contractor?

The general management contractor (Generalübernehmer, GÜ) is a contractual model in which a single contractor assumes full responsibility towards the contracting authority for the realisation of a building project – from design through execution to handover. Unlike the general contractor (Generalunternehmer, GU), which only delivers the construction works, and the total contractor (Totalunternehmer, TU), which performs both design and construction itself, the general management contractor typically does not perform services with its own personnel but exclusively coordinates third-party companies (sub-contractors).

Distinction between the terms

In German and Austrian construction practice, the terms general contractor, general management contractor and total contractor are often used differently:

Term	Design	Construction	Own performance
General contractor (GU)	No	Yes	Partially
General management contractor (GÜ)	Partially	Yes	No (coordination only)
Total contractor (TU)	Yes	Yes	Partially
Total management contractor (TÜ)	Yes	Yes	No (coordination only)

The terminology is not fully uniform; the concrete contract content is always decisive.

Procurement law admissibility

Awarding a contract to a general management contractor is in principle permissible, but is subject to certain conditions. Public contracting authorities may bundle design and construction services into one contract only where there are objective grounds. Pursuant to § 97(4) GWB and the requirement of lot division, contracts must in principle be divided into specialist and partial lots; bundling requires justification.

Permissible grounds for awarding a GÜ contract may include:

Particular complexity of the project
Inseparability of design and execution
Efficiency gains through integrated delivery
Promotion of innovation through functional specification

Tendering under the GÜ model

Under the GÜ model, tendering is functional – the contracting authority describes the desired outcome (e.g. a building with certain usage characteristics) without prescribing the design and execution details. This gives the GÜ greater latitude in finding solutions and promotes innovation, but places high demands on the contracting authority's specification.

Liability and risks

The general management contractor assumes full responsibility towards the contracting authority for all elements of the work, even where these are performed by sub-contractors. It is liable for design errors, execution defects and the coordination of sub-contractors. This comprehensive liability is an essential feature of the GÜ model and distinguishes it from mere coordination services.

FAQ

What is the procurement-law advantage of GÜ awarding for the contracting authority? Fewer interfaces, a single point of contact, clearer allocation of liability and the possibility of functional tendering with innovation potential.

What risks does the contracting authority bear in a GÜ award? Reduced influence on design details, higher price risk (lump-sum contract), dependence on a single contractor, and difficulty in switching providers in case of performance problems.

Must the GÜ name its sub-contractors in the bid? The contracting authority can require this. As a rule, at least the sub-contractors envisaged for substantial parts of the work must be named.

Is the GÜ model treated equivalently in Austria and Germany? Essentially yes, although the terminology differs slightly. Both in Germany and Austria, GÜ awarding is permissible but requires justification where it deviates from the lot division principle.

Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.