Construction start delayed, financing at risk - What to do?

Hello everyone,

Key facts about my question:

In our contract (end of November 2017) it states: “The start of construction was targeted for the end of March beginning of April,” “The construction period is limited to 8 months.”

In the order confirmation it says:



Since May 7, 2018, the building permit has been available. So not at the end of January, so that we can start construction at the end of March beginning of April.

We have received financing from NBank and Allianz.

NBank wrote to us: “The approval notice xxx will be maintained if construction work begins by 08/01/2018.” “Further extension of the deadline is no longer possible” (extended until the beginning of August).

Of course we want to start construction as soon as possible and finish the house, now the deadline from NBank applies so we must start by the end of July.

The contractor is not giving us a concrete schedule, the start of construction was not even set in writing. The boss only told us on the phone: the schedule depends on subcontractors, they have to be able to start, they are not reachable, the weather this year was not good, this year was not good for us ... don’t worry, by then (08/01/2018) we can start.

This contractor was interesting for us because

1. Price is favorable

2. We visited finished and published houses from the company. The owners were always very satisfied with the smooth construction work and the construction period. (allegedly only a few houses were built well and quickly to use for advertising)

What would you do in our place?

Thank you very much in advance

They will probably get a floor slab finished by 1.8.

So in just under 3 months, the contractor should already be able to start, otherwise it could become a lengthy construction... Present facts and stay on it! Contact him every two days so he doesn’t lose you from his radar.

I assume it’s a general contractor, then it would also be advisable not to destroy the relationship right in this early phase. So everything with care. Proceed kindly but firmly!

As leverage, you can mention that otherwise the financing and thus his house contract will fall through.

Thinking outside the box... What exactly does Baubeginn mean?

So, if this is your job... send the Baubeginnanzeige to the building authority in mid-July. Or ask the site manager/construction contractor/architect to do exactly that.

And then you grab a spade and dig a hole...

How much Baubeginn do they still want?

I agree. The start of construction is marked by a document, at least he should be able to manage that? Unless he doesn't want to, because then his 8 months start ticking.

The creator actually has all the strings in his hand if he just plays them. As long as the [GU] keeps dawdling, his financing will collapse, and he expressly has the right to withdraw free of charge. Therefore, I would simply apply pressure by stating these facts.