Construction costs too high / Planning off target

Hello everyone,

after several months and numerous rounds of planning a single-family house, we now have an implementation plan as well as tender results, which in total are significantly above our specifications and expectations. As a result, we sought direct talks with a construction company and received feedback that the content and thus the total amount of the shell construction tender indeed do not hit the mark. Without going into detail, unnecessary costs of about 20,000 EUR were identified.

Basically, I am of the opinion that, besides the actual, time-based work of a planner (architect), especially adherence to the specified budget is an essential part of the assignment. If this is not possible, e.g., if I provide a much too low budget, an architect should of course communicate this clearly and as soon as possible. But if, as in our case, construction costs increase even from estimate to tender, the goal is missed. Especially since at the "halfway point" we clearly pointed out the budget and the necessary cost reduction measures.

In short: If I receive plans, drawings, and folders for a million-dollar villa, I can’t do anything with them at all.

What is your view on this? I am more concerned with the contractual background here and not with assigning blame or similar.

Best regards

We had almost the same problem as well (only after about 7 meetings it was not an execution plan but still the preliminary planning). After we had incorporated various saving options and own contributions, it only got slightly better. In the end, we stopped the whole thing with reference to the various meetings and went back to the start – of course, that hurt after 5 months of planning and "being in love with our house."

Have you already signed the contract? (our company talks to us and designs our house so far without a contract) If a contract exists – are your specifications (price-wise) included there? However, it could also be that more and more wishes came in during the course of the project – controlled residential ventilation, electric shutters, etc. Then the company should have pointed out to you that the price would be higher, but the problem would then be rather self-made.

My tip – if possible: send it back with reference to the various meetings and notes. Either one finds a solution or it has to go back to the start.

It is interesting that you read or hear about this problem relatively often.

So far, we have only accepted the architect's offer. No other contracts exist. Wishes and ideas were quite clear early on and tended to decrease rather than increase. We are currently at the point of stopping the whole thing.

For the single-family house with 125sqm and basement, we planned 225TEUR. As a reference: 10.8m x 7.8m, KfW77, Poroton T10, air heat pump – so no special requirements. Trades such as plumbing, electrical, flooring, painting, stairs, etc. are awarded based on offers from companies known to us. Their prices are not as variable as some often think.

What is annoying is that the costs for earthworks and shell construction including plaster are supposed to be 180TEU. There is no point in trying to save a thousand on windows. In other words, it initially depends on the tendered items.

The only annoying thing is that the costs for earthworks and shell construction including plaster together are supposed to be 180TEU. We don't need to start trying to save a thousand on windows. In other words, it primarily depends on the tendered items.

How high are the costs for your earthworks or the basement? For our city villa with approx. 250sqm living space (simple architecture without basement, but demanding statics, approx. 1,000cbm enclosed space) we have a shell builder who charges only TEUR 124 including the (minor) earthworks, klinker on the ground floor + ETICS on the upper floor. Your price sounds like a defensive offer and should be SIGNIFICANTLY reduced (unless the earthworks + basement are amazing).