Legal Question in Construction Law in California

Re: quanity of homes a general contractor can build a year

I think the difference between a developer and a contractor is not in the number of houses built, but in the role assumed.

Contractors, by definition, build (or repair) stuff under contract with an owner. The main risk they take is that whomever they contract with won't pay their bills.

Developers, on the other hand, are assuming some market risk with respect to what they build, and they may build it themselves, but more frequently, they employ contractors. Developers' profits are dependent in some way on selling or leasing the properties they invest in. Pure contractors have contracts that, when paid by the owner, end their involvement and risk (in most respects, at least).

Sometimes the line can be fuzzy, because there may be dual or overlapping roles, joint ventures, etc., but generally speaking it is pretty easy to separate the sheep from the goats here based on role played, not volume.

Re: quanity of homes a general contractor can build a year

I'm not sure what you're really wanting to get at by your question. The difference between a developer and a contractor is often one of role. The issue of "how many homes" more often arises regarding housing construction under the concept of strict liability. Under California law, if you are deemed to be a "mass producer" of housing, you are subject to strict liability for construction defects. The issue then becomes how many homes makes you a mass producer? There is case law to suggest that building a dozen or so houses on spec a year is arguably entering into mass production. Whether a particular developer falls into the mass production definition is subject to various factors considered in the case law and subject to legal argument.