Construction costs are currently skyrocketing

Don’t get me wrong, I have also had great "craftsmen" here. My favorite was the "window maker" who took out the old window, installed the new one with plastic spacers (you could still look out around the window) and said: "So, now I'm done, the connection to the masonry has to be done by the bricklayer."

The search for good craftsmen simply takes time. I now have plumbing, roofer, electrician, windows and doors. And they are constantly rehired. If they are clearly too expensive, I politely point out that I would like to hire them, but there is a significant price difference (> 20%). And I ask if they would rather explain that.

We were at the second meeting with the main contractor today... We probably have to expect about 3k/sqm... At the ADW near CZ... :/ It also seems that the construction contract will be redesigned and there will no longer be a fixed price that applies, but rather some kind of "index," although he doesn’t know yet what management will do... How can I imagine this index construction contract? I sign today for, for example, 400k and next year in April at the start of construction it costs 480k and I’m out of luck?! Thank you

How can I imagine this with an index construction contract? I sign today for, for example, 400k and next year in April at the start of construction it then costs 480k and I'm out of luck?!

Usually, the data from the Federal Statistical Office (Google: Destatis Construction Price Index) is used for this. Meaning: You sign in Q2/2022 for 400k. Construction start is Q2/2023. They look at how much the index has risen from Q2/2022 to Q2/2023 and apply that percentage to the 400k. At least that’s how the "big players" handle it when you are outside the price guarantee.

Where are you building? Upper Palatinate, if I read your nickname correctly?

Yes, that's exactly how it can be. It has now become common practice. Construction companies currently cannot calculate reliably either. The 3000€/m2 is apparently the lower limit at the moment. Existing properties are also continuing to rise. Interest rates are rising more slowly in the short term due to the war. Existing properties are really there. New construction is financially and timewise almost not plannable.

Where are you building? Upper Palatinate, if I read your nickname correctly?

District of Tirschenreuth

Existing properties are really there

There? Either ready for demolition or 25 years old and 10% below a new build

Yes, exactly, that can be the case. It has become common by now.

How do they imagine that? It’s probably not feasible for 90% of the builders... You can’t just finance a 45% buffer and if you don’t draw on it, you still have to pay a massive penalty to the bank?

And you can only start in April 2023? You probably only get such a long price guarantee with the big ones….