Construction contract - Uncertainty regarding payment schedule

5% retention if the guy does not have an escrow account. It was the same for us, it's included in the notarized contract. We also withheld it, why should that be a bad start? He will get his money at the end if everything is fine.

Yes, I see it that way too.

We, in turn, have to provide him with security:

Provision of a guarantee or another payment promise by a credit institution or credit insurer authorized to operate a business under the Civil Code to the contractor amounting to 15% of the agreed price.
But at least:
The contractor must reimburse the client for the usual costs of providing security up to a maximum rate of 2% of the guarantee amount per year.

I hope that this can still be discussed and that we can show him proof of our equity plus loan and that this will be sufficient for him. Right?

I agree with the latter. He has to swallow that. You have to trust him to finish without going bankrupt. He trusts you to pay the invoices. I had the following payment plan. 11 steps. 9 at 10% and two final ones at 5% each. The last five after successful acceptance and handing over of the keys and removal of any defects. Payment term 14 days. If within 8 days, then 1% discount. I have always paid promptly without withholding, taken my percentage, and at the end the five as well, since everything was okay. Karsten

Yes, I agree with that. Thank you. Then it also states that if the [Baugenehmigung] is not available 6 months after the contract is concluded, the price will increase by 0.5%. We are located in the [Bebauungsplan-Gebiet] and only need a [Bauanzeige]. The [B-lan] is available, so hopefully there should be no problems in that regard.

For me, from application to approval [three weeks]. [B Plan], no special features requested.

The only special feature with us. The property is not yet 100% developed. Only the tar and the paving of the sidewalks are missing. And then it is developed, must be paid for, and then I can submit the building notification. The plan is May / June.