Expired fixed price guarantee - additional costs

If the question about the buffer is directed at me, after purchasing the land and the originally calculated house construction, we still have 95K left. However, this also includes the selection of materials (tiles, floor coverings, doors, which we purchase separately from the company in B2B and install as EL). That means we can vary a bit in terms of procurement prices.

The question is of course addressed to you. In the calculation for financing, a buffer for unforeseen circumstances is always included. 10-20%. That should cover the scenario; the rest must be saved somewhere. I really do not want to be in your shoes – it is certainly very unsatisfactory. Nevertheless, there must be a Plan B for you.

you planned a house
+ Muster
+ Garage
+ Terrace
+ Paths, driveway
+ Fence system,
consider which of these plus signs can be postponed by months/years,
and the order.
There should be some leeway for your financing

Well, the request runs in parallel, and then you have to wait for your turn...



How high is the buffer planned? They talk about at least 10% of the fixed price offer... that doesn't mean every builder considers this. But it has been confirmed by most builders here over the years. The early (information) worm gets the build ;) Either increase financing or cut your losses – it’s easier for some than others, but you can’t really advise on that, everyone has to calculate it for themselves.

I’ve planned about 15k for special expenses, with 2% discount on the individual trades more towards 20k. So really as a pure buffer for what still arises during the construction phase, e.g. for a bit more paving/terrace area and for example fence or garden construction. As I said, the rest is completely part of my contract, but I have to say that I’m building with a smaller regional general contractor, the company itself carried out all the civil engineering work and the carpenters and co employed there also do the outdoor facilities etc., which probably makes it easier to plan. For the interior finishing, my contractor organizes the trades himself and thus earns the margin. But I’m optimistic that everything will work out like this. But I also still have reserves in case something really unforeseen happens or a relevant delay occurs. So not planned down to the last euro, I think the current situation quickly becomes dangerous otherwise...

We signed our contract last week.

It said that if the construction company does not start construction within 6 months, they are entitled to increase the price by 0.XX% per month. After 12 months, a price adjustment can be made.
Our company extended the first deadline from 6 to 9 months upon request, since it is already foreseeable that the shell construction probably cannot be completed this year.

What exactly does the contract say?
If it is formulated similarly, the 10,000 euros could indeed be correct.

We signed our contract last week. It said that if the construction company does not start building within 6 months, they are entitled to increase the price by 0.XX% per month. After 12 months, a price adjustment can be made. Our company extended the first deadline from 6 to 9 months upon request, because it is already foreseeable that the shell construction probably cannot be completed this year. What exactly does the contract say? If it is similarly worded, the 10,000 euros might be correct.

Unfortunately, there is no percentage given in our contract. Only that the fixed price guarantee applies until completion if the following points are met within 6 months from the conclusion of the contract: - Building application is approved - Utilities are installed - Construction road is in place

This doesn't help you now, but about €40,000 more for the same house seems pretty steep to me. I don't know if I would want to give this free pass...

The "stupid" thing is, a few percent more quickly results in five-figure sums in the (house) final price. For that, a grandma has to "knit" for a long time. Just imagine if the price increases were like those for smaller consumer goods. There I have already noticed that prices tend to go up by 15% to 20% by reducing the package contents.

...
Either increase the financing or pull the plug
...

Or reconsider the floor plan/specifications?

...
If it's "only" about 10K, I'll part ways with them on the spot; at 30K it already becomes painful but still within the realm of possibility... if the price increase is 30%, then the house project falls apart.
...

Fingers crossed!