Sandro177
2022-06-24 08:17:39
- #1
Hello dear forum,
I have read a lot here but still haven’t really made much progress.
We have the following situation. We signed a contract in 10/2020 for the construction of a semi-detached house with a fixed price guarantee for 24 months. The associated company also brokered a plot of land for us, which, according to statements, would be developed shortly. Well, that was not the case; we were too naive, but that can no longer be changed now.
The plots will reach building readiness in 10/2022.
We want to continue building and also agree with the builder (BU) on a reasonable basis, but the burdens due to increased interest rates and general inflation are of course very high.
Now some questions:
Does the price guarantee generally refer to the start of construction or the completion?
Is it correct that price increases may only be passed on to us if they arise after the price guarantee expires?
The latter was assured to us in a conversation in 2021, which took place when it became clear that the development would take significantly longer than planned.
In the meantime, the builder no longer feels bound to this statement because the situation has changed so significantly.
The company would like us to sign a new contract. Am I right to assume that we absolutely should not do that because it would basically only bring disadvantages for us? We are already building very basic, but have calcium silicate blocks instead of aerated concrete; that would be the only point where costs could still be saved. How should such a side agreement be designed so that the old contract is not suddenly affected? To give some numbers, a current calculation would be over 30% more expensive than in 2020. 10% would be manageable, somewhere around 20% would be a limit at which the project would really become difficult for us.
Thank you very much for any advice and best regards
I have read a lot here but still haven’t really made much progress.
We have the following situation. We signed a contract in 10/2020 for the construction of a semi-detached house with a fixed price guarantee for 24 months. The associated company also brokered a plot of land for us, which, according to statements, would be developed shortly. Well, that was not the case; we were too naive, but that can no longer be changed now.
The plots will reach building readiness in 10/2022.
We want to continue building and also agree with the builder (BU) on a reasonable basis, but the burdens due to increased interest rates and general inflation are of course very high.
Now some questions:
Does the price guarantee generally refer to the start of construction or the completion?
Is it correct that price increases may only be passed on to us if they arise after the price guarantee expires?
The latter was assured to us in a conversation in 2021, which took place when it became clear that the development would take significantly longer than planned.
In the meantime, the builder no longer feels bound to this statement because the situation has changed so significantly.
The company would like us to sign a new contract. Am I right to assume that we absolutely should not do that because it would basically only bring disadvantages for us? We are already building very basic, but have calcium silicate blocks instead of aerated concrete; that would be the only point where costs could still be saved. How should such a side agreement be designed so that the old contract is not suddenly affected? To give some numbers, a current calculation would be over 30% more expensive than in 2020. 10% would be manageable, somewhere around 20% would be a limit at which the project would really become difficult for us.
Thank you very much for any advice and best regards