Experiences with contract negotiations with developers/general contractors

  • Erstellt am 2015-03-29 15:03:31

Legurit

2015-03-29 17:41:18
  • #1
So out of self-interest, I would only go to the bank once you know what it will cost. Nobody likes to refinance, overfinancing also costs a bit (not that much - but still). However, we have now also submitted the application with quite a few unknowns (soil report available, but for example, no written offer yet for earthworks, pipelines, outdoor facilities).
 

ypg

2015-03-29 18:06:07
  • #2


You write in the calculation for house costs
x€ according to the offer.
Extras own services material y €
Upgrades electrical z€
Sum total = xyz €
always round up nicely and build in a buffer, since you are only estimating.

Then the additional building costs, outdoor facilities, miscellaneous

That is enough for the calculation...



ours too But I wasn’t a forum member then
We were lucky, that’s what we think -> everything went well.
 

Musketier

2015-03-30 10:25:37
  • #3
If you are going to bring an external person on board anyway, then let them make the comparisons of the offers from your preselection. They can tell you exactly that the point is included in the construction service description in the offer from Company 1, but not in the offer from Company 2, cost approximately =x €. Thus, offer 2 should be cheaper by the amount x.
 

Bauexperte

2015-03-30 10:50:52
  • #4
Hello,


I’m answering from the contractor’s perspective.

We create the calculations based on the draft drawing; meaning, once the draft is finished, our draftsmen click a button and the program calculates the exact fixed price based on the quantities and equipment to be installed. So we don’t estimate nor do we include buffers. If a discount in the range you described was possible, I would have already screwed over every one of my customers from the start. I generally don’t grant discounts; maybe a floor-to-ceiling shower or a second washbasin on top, that’s basically it overall. I don’t have anything to give away either, because our BB is already pretty well positioned.

From your description of the circumstances, I gather that you don’t have much knowledge of the subject (laypeople rarely do, where would they get it from?). So take some money in hand and have the documents of your preferred construction partner checked by someone who knows about it. That way you are largely on the safe side and can be almost sure that you are not laying a cuckoo egg.

Edit:

Normally, a personal conversation is enough for any financier, in which the future builder openly reveals his personal situation. Based on this, the financier calculates the financial framework within which potential builders can operate. Some banks also expect an offer; for that the offer from the preferred provider is sufficient. Bankers know quite exactly what additional costs need to be added.

Rhenish regards
 

Doc.Schnaggls

2015-03-30 11:53:18
  • #5
Hello,

the statements by match my experiences as a customer quite exactly.

Getting a real discount is nearly impossible with reputable suppliers, especially in the current order situation.

As an alternative, we received a so-called equipment credit – which then included one or the other little treat that we otherwise wouldn’t have allowed ourselves.

Anyone still offering big discounts has previously priced correspondingly higher – we have especially noticed this bad practice with kitchen suppliers...

Regards,

Dirk
 

kubus

2015-03-30 12:41:58
  • #6
We have had similar experiences as Dirk. The prices of the individual providers were not really negotiable, however, all sellers had a small margin in the form of small extras or similar. Based on experience, this margin was between 1% and 2% of the final amount.
 

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