BÜ wants a declaration of assignment. How to avoid it?

2021-07-25 11:18:04

That is not uncommon. The contractor protects himself against financial losses this way. By paying the first installment late, you have sent the signal that your finances may not be in order. The contractor can secure himself against a complete default through the assignment declaration. Commercially correct. The problem could then be if you have to/want to withhold payments in order to, for example, demand defect repairs.

2021-07-25 11:24:50

I think we had something like that too? So, the general contractor wanted such a document from the bank, confirming that everything regarding the financing is okay. Is it something like that? If yes, such a thing is common.

What is the name of your contracting partner?

I have the feeling that you think you have a personally different contract than others.

It also seems to me as if you have chosen a contracting partner whom you do not trust and are fundamentally suspicious in return.

That somehow cannot work. One should trust a partner. There must be something right about giving them the initial benefit of the doubt.

I or even the whole forum probably cannot identify the exact weakness of the contracting partner. However, it is the case that if a general contractor’s contract is immoral, the general contractor is also not active for long. They then quickly disappear and are rather a niche company (quickly there and quickly gone).

I think you had something else. Our financing has long been settled. What our building insurer wants is basically the indefinite authorization to initiate payments from the bank themselves. That means we no longer have any leverage should defects arise during the construction. And defects will occur, as is the case with many construction projects.

Our trust is broken, that’s true. In our opinion, not without reason. However, we are contractually bound to this construction company and have to find a way to make sure the house stands and that we don’t get taken advantage of.

2021-07-25 11:32:10

What communication has taken place so far? Is there still room for a solution?

As a contractor, I probably wouldn’t be pleased either if my client did not make the agreed payment at the first attempt or only made it late. Was this agreed between you and the company so that there was mutual understanding about the procedure?

Otherwise, I can also understand wanting to protect oneself from not getting paid for work?

You mention conflicts; I would need further context on that...

2021-07-25 11:32:45

I think you had something else.

Yes, I just checked. It was a normal financing confirmation with us.

Our financing has long been secured.

Does that have anything to do with it? I rather think not.

Our trust is broken, that is true. In our opinion, not without reason. However, we are contractually bound to this construction company and have to find a way for the house to be built and not to be cheated.

You are not addressing the questions. Could it be that you never had trust and are therefore quite difficult? Since you also do not provide us with any explanation (you are not obliged to), you should at least reflect on yourselves.

2021-07-25 11:34:18

Is there now a possibility for us not to comply with the demand of the construction company? What happens in this case if we refuse such an obligation? Once again our own fault, I know, but can it be that such a situation is legally legitimate if it causes a significant disadvantage for the client? Thanks in advance.

1. Of course, there is the possibility not to comply with the demand. 2. Then the contractor will terminate the contract for good cause with all consequences according to the Construction Contracting Act, unless otherwise contractually agreed. 3. The contractor is not responsible for the disadvantage. He wants the contract to be fulfilled. Nothing more.

2021-07-25 11:53:10

I think you had something different. Our financing has long been secured. What our BU wants is basically the unlimited authorization to initiate payments from the bank itself. With that, we no longer have any leverage if defects occur during the construction. And defects will occur, as is the case with many construction projects. Our trust is broken, that's true. In our opinion, not without reason. However, we are contractually bound to this construction company and have to find a way for the house to be built and not to be cheated.

Unfortunately, you lost the leverage with the payment delay. The guarantee is clearly regulated in your contract. It only says that the bank has to step in if you cannot or do not want to pay. If you did not like that part of the contract, you should have had it removed before signing.

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BÜ wants a declaration of assignment. How to avoid it?

Myrna_Loy

Thomas911

minimini

ypg

hanghaus2000

hanghaus2000