Experiences with contract negotiations with developers/general contractors

hi

i’m curious about your experiences with negotiations with developers when it comes to signing contracts. we now have a bunch of offers from various builders here and would like to move on to the next step. we’re slowly getting a feeling for what costs what and what each developer could deliver. while one big builder advertises with many “inclusive” prices and constantly offers some discounts before you even ask, the small builder always includes a fixed price. both offers are similar with theoretically the same scope +- 2000€. we’ve basically included all the extras that we could imagine, but we’re already pretty close to our limit. when driving through numerous new development areas, we noticed that almost no one actually has these extras (roller shutters, cladding, glazed roof tiles, and chimney = together easily over 20,000€). money always turns out to be tighter than you originally planned.

i’m interested in how much is normally still negotiable?! especially with some extras, the margin should be bigger, since the commission on extras is always higher than on standard items. of course, i know something is factored in here, probably 5-10%?!

the order situation here is good, but nobody will just let someone go if they have real interest in a contract.

Elma earns about 30 k€ from ProHaus (it is a public limited company, so they show that). Back then, they offered us about 10 k€ or a central ventilation system as a "bonus". It probably always depends on the construction company and their order situation. When you talk about equipment, do you also mean the actual values of your house? So the same wall constructions, plaster, insulation, base insulation, roof covering, etc.? For the construction company we have now basically decided on, we do not want to negotiate, as we feel that the price/performance ratio is fair. Here we also speak directly with the contractor and not with a salesperson.

Elma earns about 30k € per Prohaus (it’s a public company, so they show that). Back then, they offered us about 10k € or a central ventilation system as a "bonus".

Well, 10,000 € as a "discount" is already more than decent. That’s roughly what we imagined too. But apparently, we handled it wrong and already listed all the extras. One bigger extra should have been left out and "contracted in" later as "free of charge". Ultimately, with our extras, we are somewhat over our self-imposed limit and have to somehow reduce the total price by 10-15k € to have those again available as a reserve.
We found a smaller medium-sized bank that, without much fuss, includes the obligatory 5% guarantee for the entire construction period and a completion date with a penalty payment (equivalent to the rent) upon contract signing.

We definitely plan to include the earthworks by making the soil survey part of the contract (the seller also knows the properties and knows that the ground issues there will be rather minor). Since this bank also handles the applications for construction water/electricity, it can pay for the consumed units itself right away. If we can still reasonably round the total price, we’d be in business (or put back in some previously removed extra again).

However, I’ve been wondering the whole time what all the long chatter until the contract is supposed to be about?! I have an offer, I know what he wants for it, and more or less see what I’m getting for it. Do you go to the seller/company 5 times to keep negotiating extras/prices or something?! Or what is done there?! I know exactly what I want. The internet already gives a pretty good idea of what you need and what not, or what kind of things there are. I already know I will take Flandern plus roof tiles (color doesn’t really matter at first), but many extras are also special things that you only clarify much later because it’s much cheaper to talk directly with the craftsmen (topic electricity). For a high-voltage connection in the bathroom for a future sauna, I definitely don’t have to negotiate in person. So, what is always negotiated there?!

so what is always being negotiated there?!

.. the faulty or incomplete construction service description, the number of installments, the faulty contract for work, the missing appointment confirmation...

E.g.: why the construction electricity and construction water have to be paid on site.

since this contractor also makes the applications for construction water/electricity, he can also just pay for his consumed units himself.

Many contractors also offer to handle the applications, but these are your bills (additional construction costs).
In our case, they took over the bills later, but this is not customary.

... would already be a negotiation point in your case

Our construction service description is, I believe, quite patchy... 8 months are stated, but not what happens if it doesn't work out. The same goes for the retention of the 5%. A canopy with two wooden supports, but not what it then looks like, etc. We still have to see how we handle that. But I had the feeling that there is always some room for interpretation.

.. the faulty or incomplete construction service description, the number of installments, the faulty contract for work, the missing deadline commitment...

of course, you first have to know what all is included. yes, there are of course the many construction descriptions, etc. in the end, we want to bring an external expert on board anyway, who will uncover all these issues before the signature. but I don't want to do that for 2 or even 3 construction companies, since it costs money each time. I have read the construction descriptions from 3-4 companies. as you always write, much of it is very vague.

what kind of offer do I actually need to apply directly for a loan at the bank?! is the typical 3-5 page offer with a list of extras enough?! or is a special offer necessary for that?! or do you only do that when you mostly agree with the construction company?!