Uiuiuiuiuiuiui, Owowowowow. It probably couldn't have gone more past each other :-(
We carried out our house planning with a locally known construction company (general contractor) based on an offer including a description of construction services, submitted the building application, and completed the detailed planning. The contract was supposed to reach us before the start of construction. After multiple inquiries and urgings, we then received an email two days before the planned start of construction on a Saturday with a preliminary cost update, but still no contract.
The - including implied - acceptance of an offer already turns it into a contract. If the offer did not yet meet your demands for a contract, you should not have accepted it. Now you have accepted it, thereby created a contract (without having stipulated any improvements to its content) and are basically liable to the other party for damages if you want to get out of the contract.
Now, without any justification, additional costs amounting to about 10% of the total house price are demanded. This has led us, in conjunction with the building permit not yet having been issued, to stop the construction project until clarification. This, in turn, quickly prompted the general contractor to offer us the termination of the project and compensation for the work performed so far according to HOAI, which we rejected and insisted on fulfillment.
By insisting on fulfillment, you have once again emphasized that a contract exists. Unfortunately, it seems you both made oversights here: you did not agree on the binding period of the prices or the limitation of their adjustment to cost increases despite the still uncertain start of construction, and so on. You have no claim to a remedy for both your oversights but must come to an agreement about it. The contractor therefore responded quite appropriately to your halt with the offer of a termination agreement. With compensation for his previous expenses (without an additional charge for lost profit!) he will prevail in the first instance and will even be praised by the judge for his fairness; in the second instance, this would be fully affirmed at least or could even turn further in his favor, and if your lawyer has even a shred of decency, he will explain exactly the same to you and recommend an out-of-court settlement. That the general contractor now calculates his planning costs according to HOAI is indeed somewhat steep for a drafting-only planning but on the other hand absolutely fine: you have omitted to make an express deviating arrangement—there is no objection in my opinion to applying a recognized standard as a fallback. I firmly assume that an arbitrator would not explain the situation to you differently.
Furthermore, the general contractor wanted to charge us for the demolition costs of his shell builder, which we also rejected with reference to the still missing building permit.
I assume this does not mean expenses for the demolition of a predecessor building, but merely the cancellation costs of the shell builder (who has the freedom, deviating from the general contractor, to also want his lost profit compensated in order to likewise agree to the termination agreement).
In summary, I sincerely thank you for your suggestion made by presenting your case to ask my lawyer for a guest article on Baulotse-Hoffmann, which will clearly explain to overly optimistic builders what actually creates contracts :)