Behavior/Consequences towards Construction Company

We have the following problem and are really at a loss by now:

We started building our house in June 2021 last year and commissioned a construction company as the general contractor up to and including the turnkey finishing stage. Everything started perfectly, and the construction then stalled due to delivery difficulties of steel/reinforcement for the intermediate ceiling. Over the winter, hardly anything happened (roof, windows, and completion of the brickwork). By March, the shell was completed and covered.

The big problem is that the construction company is working at a snail's pace, which is now no longer tolerable for us. They have taken a good 4! months for all installations (electrical, sanitary). By the end of June, these were only completed. To explain: the gentlemen brought in an electrician from the area who, after his 40-hour job, worked for about 1-2 hours in the evenings at our site. Often, he didn’t feel like working for us after work because he also wants to go home once in a while. Accordingly, it took forever. And we didn’t even know that. We then learned it from neighbors. That is not what I understand under subcontractors as we actually discussed. And it goes on like this the whole time. We constantly call, constantly go there, and 1. hardly see anyone working and 2. are constantly given excuses like “next week we’ll speed up” / “our house is the highest priority” / “on day xy the interior plastering or screed will come”. It just never happens.

We have been building now for 13 months and haven’t even reached the tiling-ready stage.

Originally, according to the schedule in June 2021, it was said May 2022, if nothing like lockdowns etc. interfered. Of course, we were aware of that, but from the start, we made it clear at contract signing that we have to move into the house by this summer (August 2022) at the latest. They said it would surely work out. Then it was summer or June/July (due to material delivery difficulties).

In May, we sought a conversation because it was already clear to us that June/July would never work out at the pace they were working. We explained our situation that we absolutely have to move in by the end of August. They said they would make it by the end of August, they are now working continuously. We would get a building dryer for the screed to catch up during this time, etc., they would cover all electricity costs as a sign of goodwill, etc., and the screed would be done at the end of May including interior plastering. We were on vacation for two weeks at the beginning of June and upon our return, we were shocked. We drove to the house and nothing had happened. Zero. Just last week we finally got the interior plastering done. No sign of underfloor heating or screed. And in about 6 weeks, the house is supposed to be handed over turnkey?

I can’t listen to their stories anymore, their empty promises. Especially since we have an 18-month-old toddler and I am currently 5 months pregnant. So just going to a hotel or staying with friends/family is not exactly easy in this situation (not to mention who pays for that?). The kitchen planner also refuses to measure without screed, so we will have no kitchen for weeks. A great situation with a child/baby. Our relationship is also suffering massively. This is the number one cause of arguments. It’s all a nightmare.

I already wanted to go to a lawyer but what’s the use now if they won’t finish. The angriest letter won’t change that. I can’t even count how often we call and go there. Always the same bla bla. Especially since we did not agree on a penalty clause due to Corona lockdowns, since then they cannot influence the construction anymore.

I would suggest that they finish the tiling-ready stage (i.e. screed) and then we complete the house ourselves with professionals on our own initiative. I think we would be much faster than them. Does anyone know what else we can do?

Thanks for reading!

What do you have written in the contract about the handover date? What does the [GU] say in writing about the delay?

Otherwise, put the [GU] in default in writing and claim damages. Even if there is no specific penalty in the contract, damages are regulated in the Construction Code. For example, it can be the rent for a furnished apartment.

I’m afraid you won’t get any craftsmen on short notice. In our region, the response to inquiries is: not before 2024.

That is intense. What does the external construction supervisor say? Has he had any experience with the company? He might be able to mediate.

Since they started in July 2021, the issue of material shortage probably doesn't apply. A construction company usually reserves or stores the materials. We started in November 2021, and the only thing with delivery difficulties is the geothermal heat pump, which was ordered in February 2022. Have they already ordered the heat pump for you? Current delivery times are about 9 months.

What do you have written in the contract regarding the handover date? What does the general contractor say in writing about the delay?

Otherwise, put the general contractor in default in writing and claim damages. Even if there is no specific penalty in the contract, damages are regulated in the Building Code. For example, it can be the rent for a furnished apartment.

In writing, we have the construction contract with a latest construction end date of 12/2022, precisely because it was unclear whether and to what extent one or more lockdowns would come again. The construction schedule without this scenario was set until May 2022.

In writing, almost nothing works there. They never reply by email but call instead. They are still somewhat old-fashioned here (no homepage, etc.). We have already chased many emails; often the answer was that they had not received them at all. So unfortunately, our agreements are mainly based on personal conversations.

I’m afraid you won’t get any craftsmen at short notice. In our region, the answer to inquiries is: not before 2024.

Ufff.... that sounds terrible.

That’s really tough. What does the external construction supervisor say? Has he had any experience with the company? He might be able to mediate.

The fact that they started in July 2021 means the issue with material shortages probably doesn’t apply. A construction company normally reserves or stores materials. We started in November 2021 and the only thing with delivery problems is the geothermal heat pump, which was ordered in February 2022. Have they already ordered the heat pump for you? Current delivery times are about 9 months.

We don’t have a construction supervisor; we would only involve an expert at handover.

All materials are there. Heat pump, floors, our front door, etc. It’s all in their warehouse. They just need to install and do something.

"Written" means the good old letter by mail. Preferably by registered mail with return receipt. Even better from the (specialized) lawyer.

I also ignore several emails daily ;)