Steglitz
2016-09-08 11:10:02
- #1
The advantage of clearly and explicitly regulating something like this in the contract is that you can enforce a penalty clause directly without first having to prove delay. For example, you can set the start of construction to no later than 6 weeks after the building permit is granted, with the simultaneous obligation that the construction company must be finished within 7 months after construction begins. Force majeure, weather, unrest, or other delays not attributable to the construction company will extend the deadline accordingly.
Then attach a reasonable penalty clause per week that covers your double burden for rent and financing costs, linked to the fault of the construction company and, for example, limited to a maximum of 5% of the construction sum.
If you are lenient, minor defects and reasonable remedial work do not exclude completion. There is always something to repaint or fix, which can also be easily done after moving in.
That’s how I did it and it worked out quite well for me. You also see from this whether the construction company has a reasonable construction schedule. You should also have them provide this at the beginning of the construction work, because that way delays can be recognized quite early.
Then attach a reasonable penalty clause per week that covers your double burden for rent and financing costs, linked to the fault of the construction company and, for example, limited to a maximum of 5% of the construction sum.
If you are lenient, minor defects and reasonable remedial work do not exclude completion. There is always something to repaint or fix, which can also be easily done after moving in.
That’s how I did it and it worked out quite well for me. You also see from this whether the construction company has a reasonable construction schedule. You should also have them provide this at the beginning of the construction work, because that way delays can be recognized quite early.