Advance payment, construction defect, construction progress too slow

  • Erstellt am 2011-10-26 19:07:17

iteach

2011-10-26 19:07:17
  • #1
How can I legally reduce an advance payment if a defect is present? Do I have to follow a specific form, e.g., in writing by registered mail, etc.? Do I have to justify the reason for the reduction? Who determines how much I am allowed to reduce? Does the reduction have to be explicitly for this particular installment, or can it also be made later (e.g., window installment paid because it was okay, now windows are unusable because they are smeared with plaster)? Can one then, for example, reduce the electrical installation installment? Suppose the completion of a house is promised for early November, but this cannot be met due to errors affecting the organization of the trades. Am I allowed to reduce the subsequent claims to motivate the homebuilding company to complete the remaining work faster than before? If yes, how much? I am concerned that the final installment will not cover the contractual penalty incurred.
 

Bauexperte

2011-10-26 20:47:35
  • #2
Hello,


Did you conclude your contract for work and services according to the Construction Contract Procedures (VOB) or the German Civil Code (BGB)?

Kind regards
 

iteach

2011-10-27 07:28:02
  • #3
Building Code. The performance is always to be paid after or upon provision (services according to the construction description).
 

iteach

2011-10-27 13:40:41
  • #4
The construction period is being extended because neither the site manager nor the management succeeds in getting the companies to the construction site on time. That is the statement of the site manager; the construction progress has been documented in writing by us and corresponds with the generated construction schedule, which we received after long pleading and begging. Our contract states that the construction period is X working days. The following calendar days are to be added In case of delay, the contracting party has to pay a contractual penalty of X per working day. Of course, we have tried talking, but that no longer helps in the current situation. The gentlemen have a talent for sugarcoating everything and leave us empty-handed every time. The result is that nothing happens. We have never received a VOB, a construction contract, a construction and performance description, a payment plan – that’s it.
 

Bauexperte

2011-10-28 10:32:31
  • #5
Hello,


The issue with the construction schedule is a problem with many general contractors.
If the site manager made this statement, he should also be prepared to document it in writing; that would help you move forward a bit.


Okay, then you must first put your contractual partner in default, in writing and by registered mail/return receipt. The law requires that your provider is granted a reasonable period for remedy. You should attach the—hopefully available—document from your site manager and list the trades that are demonstrably delayed without providing reasons. With this letter, you simultaneously announce that—in case of exceeding the construction period—you will make use of the contractually agreed penalty, specifying the working day from which the regular construction period is exceeded.

Your provider WILL react to this letter (must react), because it gives them the opportunity to explain the delay—if any—make proposals, and work toward a mutual solution; no provider likes to pay voluntarily. Only if this proves fruitless may you reduce interim payments!

You should remember one thing: if talking brings nothing—always write! Everything that is demonstrably “on the table” cannot be ignored and forces a reaction.


I don’t understand that—who are you building with?

Kind regards
 

iteach

2011-10-29 08:22:00
  • #6
Unfortunately, we do not get anything in writing at all. The site manager is a thing in itself. "No matter what happens – it’s not my fault." or "I mustn't say that too loudly because I still want to continue working with them." So much for the topic of an independent advisor. We are not quite sure whether going public will really bring any benefit or if we will only get into more trouble than we already have.
 

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