Execution guarantee documents only at the start of construction?

Hello,

what do you think about receiving the performance bond only "two weeks before the start of construction"?
Before that, two installments are already due, amounting to a total volume of approx. EUR 60,000.

Is this really common practice among the major construction companies?

I look forward to your feedback...

what is to be made of receiving the performance bond only "two weeks before the start of construction".

You don’t happen to mean a "contract performance bond"?

Previously, two installments have already been due, totaling approx. EUR 60,000.

For what purpose and in what relation to the total amount of the construction project? Rhineland regards

Hello construction expert,

yes, I mean a [Vertragserfüllungsbürgschaft].

The total amount of the [BV] is TEUR 360.

The first two installments are TEUR 30 for planning and TEUR 30 for the building permit.

It would be great if you could give me your assessment.

Thank you very much.

Best regards

What do you think about receiving the performance bond only "two weeks before construction starts"? Before that, two installments are already due totaling approximately EUR 60,000.

No work done yet and already the first EUR 60,000 gone? Then the contract performance bond (from a German universal bank) must necessarily be received BEFORE this payment.

Make sure to get advice.

*shakes head*

"two weeks before the start of construction". Two installments are already due before that, totaling approximately EUR 60,000.

I hope it's not too late yet ... It could all be fine, you just don't know. In our property developer contract, the first payment is due *after* the start of the earthworks (well, of course, notary, property transfer tax, city fees, I don't know what else are earlier ...). Maybe you can reduce the first installment by the amount of the performance bond.

Thank you for the first responses. There is still no information available regarding the amount of the performance bond. Until now, I thought it referred to the contract sum.

The first 30000 have already been paid for the design planning. The next 30000 are to be paid as soon as the building application is handed over for submission.