Construction costs are currently skyrocketing

I can understand every general contractor and every craftsman who no longer wants to take the risk with the material. But as a builder, it is now simply incalculable.

Whether the surcharges with the general contractors or craftsmen still have anything to do with reality? Here is a live status report: 100 sqm Rhombus larch as exterior cladding for a mere 50 gravel stones surcharge.

Btw - from when can you send PMs?

I fear the limit has probably been raised again and is now at 200 or even 250, since I can no longer send any either. In any case, in my opinion, you wouldn't go wrong with JR Bau. We built with them last year and are completely satisfied. However, prices, as with everyone in the industry, have accordingly increased. At least the company is very well positioned in terms of key figures, so that risks are minimized in this regard. Unfortunately, there has been a significant trend in recent years of general contractors with no significant staff, who, in my opinion, are often not the best choice given the current order situation.

In general, one should keep in mind that no reputable contractor currently can seriously offer fixed prices that are valid for longer than 4 or 8 weeks. Therefore, index price clauses will probably prevail. And just to mention, what has been gained if a contractor today wins his customers for next year with a bunch of fixed prices that, due to procurement prices at the end of this year, put the contractor into an economic loss. The contractor goes bankrupt and the started or planned construction can then not be continued or started (provision interest).

This may be bitter for the wishes of some, but one should face reality and also question the motivation for building once again.

And by the way ... the interest rate development can currently take adventurous values even by today’s standards. Around 2000 (just over 20 years ago), the mortgage interest rate was between 5.5 and 6% ... that’s almost double what most people today calculate with for interest AND repayment.

Worse than milkmaid’s reckoning. People who pay such rents often do not have the necessary equity to buy something in the area.

I wanted to fully agree with you at first, then I looked up my hometown. Upper Swabian province, small town. By now, in the listings most offers for apartments are just under 10€, some are above. Sure, this is southern Germany, but certainly not a typical high-price region when it comes to housing.

Generally, one should keep in mind that no reputable general contractor currently can seriously offer fixed prices that are valid for longer than 4 or 8 weeks. Therefore, index price clauses will likely prevail. And just to mention, what has been gained if a general contractor today wins clients for the next year with lots of fixed prices that, due to procurement prices at the end of this year, lead the general contractor into economic loss. The general contractor goes bankrupt and the started or planned construction cannot then be continued or started (provision interest).

I find that a very double-edged sword. Because the client must also be able to calculate properly. Property owners who are insolvent cannot be in the interest of the craftsmen either. But I also do not have a solution to the problem :confused:

I think this is a very double-edged sword. Because the client also has to be able to calculate properly. Builders who are insolvent cannot be in the interest of the craftsmen either. But I don't have a solution to the problem either :confused:

Assuming that if a general contractor offers a fixed price for a construction project in one year, a certain price increase is already factored in. Especially now, after the Corona price explosion, the GCs will add a considerable safety margin to fixed price offers based on their experience.