Häuslebauer40
2012-09-07 14:27:44
- #1
... but it doesn’t make much sense not to have a payment plan. It has to be agreed somewhere when what is paid.
For additional work that we assign to our builder, it is handled so that we pay 60% in advance and the remaining 40% upon completion. On the other hand, with every partial payment (i.e. after the shell construction, after the roof, etc.) 3% of the invoice is always withheld as security. So after the house is completed, we basically still hold 6% of the agreed house price. 3% final installment + 3% security retention ...
60% advance payment is also far from correct. Just for your information:
Invalid clauses in the construction contract
According to the statutory model applicable in Germany, a builder is obligated to provide advance performance. He must initially provide performance in advance and can only demand partial payments pursuant to § 632a paragraph I of the German Civil Code (Baugesetzbuch) to the extent that he has previously rendered performance which results in an increase in value of the building.
Builders understandably try again and again to circumvent this advance performance obligation partially by drafting construction contracts in which favorable partial payments are agreed upon for them.
In about 80% of all construction contracts concluded between commercial builders and private home builders, these payment plans are unbalanced and disadvantage the builders.