Differences between trust collection account and bank guarantee? New construction.

I may be wrong, but even with a guarantee I would have expected that he can only call it upon against progress of construction... but of course I have no idea what would apply in the event of insolvency. If things go badly, the money would be tied up during the long proceedings, if things go really badly creditors might be able to access the money without construction performance... but just amateur assumptions, though it would of course be a not insignificant point against guarantees.

well, on the one hand you have a guarantee, i.e. the bank guarantees that the amount X will be paid and the money will not be used otherwise.

On the other hand, you also sign a payment plan in the contract for work. It is based on the construction progress. That means if the developer only does the shell construction, then you will only pay for the shell construction. If the developer goes bankrupt during this, then you still have the money in reserve for further progress. (but usually more money flows with the first 1-2 payments...) therefore it may be that if you change the developer, you will spend more (but then you know why they went bankrupt).

I may be wrong, but even with a guarantee I would have expected that he can only call it up against construction progress..

Self-debtor guarantee, payable on first demand - that is normal. Only then does money flow, regardless of whether it is justified or not. And afterwards, you can deal with it legally whether the claim was lawful.

...

I cannot answer your questions, but I would like to suggest possibly checking out another option. We took out a "Bauherrenbürgschaft/Kautionsversicherung." It cost us a one-time fee of €208.95. The premium depends on the amount to be secured. I am not aware of the advantages and disadvantages compared to your options, but maybe you want to research it and then propose it to your developer. The "Bauherrenbürgschaft/Kautionsversicherung" was a requirement from the house manufacturer to us. Whether it pays off for you, I unfortunately do not know. Addition: It just occurred to me that we did not have to "secure" the entire house construction amount but only the final installment.