Change of developer after construction has started?

  • Erstellt am 2017-04-25 16:58:13

jeti79

2017-04-25 16:58:13
  • #1
Hello everyone,

we are considering changing the developer. The bank has already approved the whole thing. My question would be, what might possibly argue against a change? Where could there be pitfalls? I simply hope for your experiences so that we don't overlook anything that should have been considered...

Background:

We signed the contract with the developer in August '16 and received the completed applications for the building permit in December, which was also granted in January '17. We informed the developer in December '16 that we wanted to start right at the beginning of '17, as soon as the weather allowed, which was confirmed to us. There is no contractually fixed deadline. Due to the in-house work (electricity, garage, and floor work on the upper floor), they did not want to commit to a schedule. Since then, communication with our developer has not been satisfactory:

Our site manager was apparently only informed at the end of January that he should supervise our construction and has appeared unprepared in every conversation so far. (For example, he asked in every conversation whether we had in-house work or not). Small traps that I include in our correspondence he overlooks.

When some of our neighbors started in the 2nd calendar week of February, we were still chasing the site manager on the phone about when it could finally start, to which he tried to appease us by saying he still had to find a construction company first. I replied that they could have done that already in December, when it was clear that the building permit would be ready in winter (the usual processing time here in town is 4 weeks, which was also the case for us).

It dragged on until mid-March until a construction company was found at all. (after allegedly another company strangely dropped out a week before the planned start of construction). This company then took a total of three weeks until the foundation slab was finished (flat, not excavated property without a basement). For our neighbors, this took almost consistently under a week. "Our" craftsmen were on site an average of 2 days a week, while others had workers on site every day.

Since then, there has been radio silence towards the construction company. I haven’t been able to reach the foreman for over 2 weeks. He does not respond to calls, voicemails, or emails. Our developer’s site manager keeps promising me at short intervals that work will continue – of course, without it actually happening. Our neighbors (several) are, for example, getting their floor slabs this week....

Therefore, we have now contacted our bank and other companies that would take over the construction for us. I have already informed our current developer and asked him to consider terminating the contract. (So far, we have paid the developer 2% for the architect services and 10% for the construction phase "foundation slab". The penalty for a contract termination would be 10% of the order amount, although I do not consider this justified, since the delays in the construction are considerable.)
 

DNL

2017-04-25 21:20:54
  • #2
Have you already consulted a lawyer about that?
 

Bieber0815

2017-04-25 21:49:40
  • #3
In advance:
Developer: Purchase of house and land in one transaction, purchase contract, developer builds the house as the builder on own land.
General contractor/general contractor with full responsibility: Contract for work for house construction on the customer's land.

You either have a contract for work with a general contractor who has received plans from you based on which he constructs a house. Or you have no plans and have a contract for work with a general contractor with full responsibility who plans and builds for you.

So, you want to cancel this contract.

What argues for or against this can hardly be answered without knowing more about the contract. The easiest thing is to contact a specialist lawyer for construction law. This would be my urgent advice.

General pros:
- Better late than never, better an end with a fright than fright without end.
General cons:
- Construction time will be extended.
- Costs increase.
- Is the new building partner really better?

What other options are there to bring the construction project to a successful conclusion? Clarifying discussion with the managing director?

All further actions should be based on sound legal advice (~300 Euro +/- 50%). IMHO.

Please report how it proceeds!
 

toxicmolotof

2017-04-26 00:07:44
  • #4
Whoever speaks of a developer at this stage of construction has skipped all learning phases before signing the contract. Before doing anything else, you must immediately consult a lawyer with expertise in construction law. As for the contractual penalty in case of termination, it is probably not about what you consider justified (after all, there is no completion deadline) but what is agreed upon and/or represents lost profits. However, any lawyer can likely explain this to you much better based on your contracts.
 

Grym

2017-04-26 00:28:37
  • #5
Even if there is no completion deadline, that does not mean the contractor can take forever. On the contrary. Promptly and within a reasonable timeframe! For more details and further help here, only a SPECIALIST lawyer can assist. So, go to a SPECIALIST lawyer. To a specialist in construction law, not just any lawyer!

I would not risk it, as long as it is still possible and the contractor is not botching the work but just slow. Good things take time.

Of course, going to a lawyer can't hurt, so that with this help you can set deadlines here, etc. (or at least announce first that if there are further delays, deadlines will have to be set, because otherwise it could take another 10 years, etc.)
 

ypg

2017-04-26 00:33:14
  • #6
Are your neighbors building with the same BU?

You are not allowed to make comparisons – who knows exactly when which contract was signed, how the company is structured, etc.
Many pay for fast construction progress, and: a builder must learn, despite high costs, that he and his house are not the center of the universe.
It is normal that a BU is not active immediately after the building permit, while the builder feels it cannot go fast enough.
However, the fleet should have already been in place logistically, I agree with you on that.

Who are you building with?

Regards, Yvonne
 

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