Fixed price offer with construction price index adjustment in the construction contract

  • Erstellt am 2022-10-27 12:41:11

Marc240

2022-10-27 13:43:15
  • #1


No, only the construction time is specified approximately (about 8 1/2 months). Construction deadlines occur after we have met the requirements, especially financing confirmation, approved construction documents.

The construction documents have not yet been submitted.

Bad odds in the worst case for us, right? We are putting ourselves completely in the hands of the contractor.
 

WilderSueden

2022-10-27 13:50:38
  • #2
As it is formulated, yes. I would assume that it is not legal if the contractor dilly-dallies for a year, but in court and on the high seas... I would try to change it to the point in time when you have a building permit and financing. From that point on, your part is done. Or alternatively, look for a provider with a genuine fixed price if you fundamentally don’t feel comfortable with the matter. I would also rather assume that the major price increases are over (simply because at the current prices the demand almost completely collapses), but you never know what might still come.
 

kati1337

2022-10-27 13:55:18
  • #3
I would at least interpret it that way, that the odds are bad for you. Above all, you are giving up any advantage of the fixed-price offer. The decisive factor for me when awarding a contract to a construction company was precisely the fixed price. I tend to pay them more than I would with individual contracts, but in return I have warranty from a single source and a fixed price that gives me planning security. With such a vague phrase in the contract, your planning security is nil. Especially if it is not recorded in the same contract how long the start of construction may be delayed at most. Back then, in our first construction contract, we had a clause that read approximately: There were no price adjustments in our case; nevertheless, it was already regulated (in the construction contract) when construction had to begin if all prerequisites were met. In part, we as clients were responsible for the prerequisites as well. But the company worked hand in hand with us to ensure everything fit perfectly (they prepared a lot for us).
 

Marc240

2022-10-27 14:16:18
  • #4
We are probably scheduled internally for May 23. The offer is also calculated for a construction start in May 23. However, this is not a contractual component.

I don’t necessarily find our contract balanced either.

Of course, the building application can be delayed, then the construction company should not be held liable, but once we have done our part, we would like to enjoy some security.

I can live and sleep with the construction price index, but I do find our contract somewhat unbalanced. Example:

In the case of a construction time delay for which the construction company is not responsible, an increase of the fixed price linked to the construction price index is understandable so that they do not remain stuck with the costs. In the case of a delay for which they are responsible, only the fixed price remains. We receive no compensation. Follow-up costs would remain with us.



We should also insist on a clause like this, thanks!
 

SaniererNRW123

2022-10-27 14:16:33
  • #5

No, not worse odds than with a provider offering a real fixed price. They usually factor in a 20% price increase in their offer, instead of the 10% your current one does. Meet the prerequisites necessary for the start of construction – because from that point it’s 8.5 months of construction time. At least, that’s how I understood you.

So it’s completely rightly your problem, and not the general contractor’s. If you don’t deliver, he can’t build. If it then becomes more expensive, it’s your fault.

In that respect, I disagree with and . Why should the contractor offer a fixed price? You’re dragging your feet with the building permit and financing, and the risk of a construction price increase lies solely with the contractor? Is that fair? Exactly the opposite view, which everyone takes as normal.

And once again: A real fixed price usually only applies for a certain period. And if you then fail to provide the prerequisites for construction, you’re really in deep trouble. If you manage it, the contractor will probably be happy because he hasn’t used up his large risk buffer and earns more.
 

SaniererNRW123

2022-10-27 14:17:33
  • #6
That is actually not fair.
 

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