Tude
2011-02-17 20:27:38
- #1
Hello experts,
we have signed a house construction contract with a large property developer. This also includes a completion guarantee, which is loudly advertised by the developer on the website and in the catalog.
Now we have received the insurance policy for this and found that the guaranteed amount of this insurance only covers 5% of the house construction price. Before signing the contract, no mention was made of such a limitation of the guarantee. Furthermore, the guarantee expires seven months after the issuance of the insurance policy.
Regardless of the question of whether we can still persuade the developer to make improvements, I had the following questions in this regard:
1. What guarantee amount (percentage of the purchase price) would you expect/demand for a completion guarantee so that, in the event of a case, the additional costs by another developer can actually be covered? In this context, I would like to mention that our developer settles according to construction progress, but in my layman’s opinion, the first trades are excessively charged. For planning, building application, and shell construction up to the creation of the roof frame (without covering), already 59% of the construction sum is due.
2. For what period should such a guarantee be set? If there were delays due to the developer’s payment difficulties, the seven months would probably not be sufficient. Should one perhaps agree on “until handover of the house” instead of a fixed term?
I would be very grateful for some advice.
Many thanks and kind regards Jens Lipperheide
we have signed a house construction contract with a large property developer. This also includes a completion guarantee, which is loudly advertised by the developer on the website and in the catalog.
Now we have received the insurance policy for this and found that the guaranteed amount of this insurance only covers 5% of the house construction price. Before signing the contract, no mention was made of such a limitation of the guarantee. Furthermore, the guarantee expires seven months after the issuance of the insurance policy.
Regardless of the question of whether we can still persuade the developer to make improvements, I had the following questions in this regard:
1. What guarantee amount (percentage of the purchase price) would you expect/demand for a completion guarantee so that, in the event of a case, the additional costs by another developer can actually be covered? In this context, I would like to mention that our developer settles according to construction progress, but in my layman’s opinion, the first trades are excessively charged. For planning, building application, and shell construction up to the creation of the roof frame (without covering), already 59% of the construction sum is due.
2. For what period should such a guarantee be set? If there were delays due to the developer’s payment difficulties, the seven months would probably not be sufficient. Should one perhaps agree on “until handover of the house” instead of a fixed term?
I would be very grateful for some advice.
Many thanks and kind regards Jens Lipperheide