A substitute investor is a person or company that acts on behalf of the investor and takes over the organization and supervision of the construction process. It is a solution for those who want to build, but do not have the time, experience or opportunity to manage the investment on their own. The substitute investor represents your interests - both towards contractors, designers and authorities.

Hiring a substitute investor works well in many situations:

  • with larger residential or commercial investments,
  • when the investor lives abroad or in another region of the country,
  • when the construction is commissioned by a person without technical experience,
  • for private investors who want to have a “quiet head” and limit their involvement.

What does such cooperation consist of?
The substitute investor acts on the basis of a power of attorney or a civil law agreement, which determines the scope of his responsibility. He can participate in the whole process - from the selection of contractors, through the inspection of works, to pickups and contact with the authorities. It is not just an intermediary, but an actual investment coordinator who watches over quality, deadlines and costs.

In practice, a substitute investor can:

  • conclude contracts with contractors and suppliers,
  • receive the next stages of work and control their compliance with the project,
  • keep construction documentation,
  • keep an eye on the schedule and budget,
  • contact designers, construction manager and officials,
  • prepare building permit applications, applications, pickups.

Does this mean that a substitute investor is the same as a construction manager? No. The construction manager is responsible for the technical side of the works, their compliance with the project, safety at the construction site and the construction log. The substitute investor manages the process as a whole - from an organizational, legal and financial perspective - and acts on behalf of the principal.

Imagine two situations.

  1. The investor works abroad. He buys a plot in Poland, chooses a project, orders construction... and disappears. There is no one to supervise the work, pick up the works, contact the contractors. The schedule is falling apart and the budget is swelling.
  2. My daughter wants to build a house for her elderly parents. She herself lives in a big city and cannot be on site every day. He hires a replacement investor who takes over communication with the crew, controls the progress of construction and keeps an eye on the formalities. The house is built according to plan, without delays and stress.
  3. Is it worth hiring a substitute investor for the construction of a single-family house? If you have the time, knowledge and energy - perhaps not. But if you care about calm, time and predictability, then such a person can significantly facilitate the whole process. This is not only comfort, but also a reduction in the risk of errors, misunderstandings and unnecessary expenses.

What are the costs of such cooperation? Depending on the scope of responsibilities and the duration of the investment. Usually the settlement takes place in the form of a lump sum for the entire process or a monthly salary, but in return you get a partner who takes care of the interest of your investment on an ongoing basis.