Evaluation of architect's cost statement for building completion

Hello everyone,

we are currently building 3 terraced houses in the Stuttgart metropolitan area (3 builders). The construction is taking place through a general contractor on our own property. Unfortunately, the whole thing is not working as hoped and expected. At contract signing in February 2019, we were promised a move-in date of May/June 2020 (depending on the duration of the building permit/release). The actual start of construction was then in early July 2020. This would not basically be dramatic. BUT as of today, after almost 9 months, the basement is finished. The ground floor is also standing but shows serious defects (for details – there is also a thread here). In addition, we regularly learn from craftsmen that they have not been paid. Last week, we received information that the rent for the construction power box (contractual service of the general contractor) has also not yet been paid. The electrician then wanted to have the money from us (approx. €700) – after a conversation, the managing director of our general contractor told me that he currently does not have the money to pay for the construction power box. Insolvency has (not yet) been filed. We already had contact with a lawyer in February, who advised us against withdrawing from the contract as long as we do not have anyone who will continue the construction with us (at a financially feasible price). This brought us to look for alternatives. We now have a first offer from a former site manager of our general contractor, who is an architect himself. Personally, some of the values (e.g. completion of masonry) seem clearly too low to me, so I wanted to fall back on “crowd knowledge.”

Here are a few side infos about the planned buildings: Each terraced house has a basement, 2 full floors and a converted attic. The floor area is 10.5 x 6 meters. It is solid construction with unfilled Poroton bricks (36.5). Interior walls are also built of Poroton (11.5). Two bathrooms are planned (1st floor and attic), one of them with a bathtub, as well as a small guest toilet. Electrical: 130 sockets, electric roller shutters, no smart home. Heating: air-to-water heat pump with underfloor heating from the ground floor. Floors: bathrooms each with tiles, the rest vinyl.

I hope I was able to summarize all relevant information reasonably well. If not, feel free to ask.

Construction site setup (construction fence, crane, construction staircase ...)	5,540.90
Completion of masonry (1st floor + attic)	11,454.39
Correction of masonry defects	15,000.00
Stonework	1,514.43
Carpenter, roofer	17,331.00
Plumber	1,899.05
Plastering work	18,533.00
Tiling work	11,322.18
Screed	4,471.18
Carpentry work	3,846.17
Roller shutter/shutter work	2,644.25
Windows/glazing	11,538.52
Painter/coating work	8,942.36
Floor covering work	4,230.79
Drywall work	1,009.62
Structural installations (stairs)	9,831.78
Sanitary installation	19,687.61
Heating installation	12,019.30
Electrical installation	18,004.90
TOTAL completion of building	178,821.43
Site manager activities	7,588.49
Project management	11,427.40
TOTAL coordination	19,015.89
GRAND TOTAL	197,837.32

I will hold back on construction cost calculation, but:

Insolvency has (not yet) been filed.
We already had contact with a lawyer in February, who advised us against withdrawal as long as we do not have someone who will continue the construction with us (at a financially feasible price).

I see the risk that you are leaving out an essential item – namely your damages resulting from tolerating a delayed insolvency on the part of the general contractor. Assume that his (provisional) insolvency administrator will mercilessly collect from you everything the general contractor still has to receive from you – even if it is "only" lost profits, in case you resort to self-help when a ruin threatens due to lack of construction progress before weatherproofing is completed; and conversely, when accounting against each other, you will end up empty-handed. We are talking here about an amount of sunk money per house equivalent to a complete fitted kitchen or a carport – so the exterior facilities will almost certainly be completed two years later. Talk to your financiers about this additional requirement now – and in my opinion, best also about pooling together for the advance services of an insolvency procedure. The damage will only become greater if the administrator is called in too late. I believe I have already pointed out in the original thread about classic "born" third-party applicants (to whom discreet hints can be given).