Handling the final installment for a single-family house

Hello everyone,

I have a question regarding the final installment for my newly built single-family house. The contract states the following:

"The client must provide a security for the timely completion of the work without significant defects in the amount of 5% of the remuneration claim upon the first installment payment. (...) The security can be provided by a guarantee or another payment promise (...)."

I have a bank guarantee for 5% of the construction sum.

In the payment plan, the 13th payment of 2% is stated as "after acceptance and rectification of significant defects that prevent moving in."

The acceptance took place on 21.12.2017, my move-in immediately thereafter. The acceptance protocol includes various open items, but none of them constitute significant defects. Some items are still not completed.

The construction company has now proposed withholding 2,000 EUR due to weather-related delay of laying the floor for the house entrance platform.

The truly significant missing items are however the following: balcony wood covering missing, exterior facade plaster with defects in the entrance area, usable standing height in the attic too low (a discount of 500 EUR was offered), some issues with electrical and painting work, entrance platform, dispute about balcony drainage through the platform...

The request to return the bank guarantee has already been made.

Can I now withhold an arbitrary amount or not since these are not significant defects? My idea would be to withhold the entire 2%. That would be 6,000 EUR. But would I then maybe face a payment lawsuit or would they stop the rectification work?

Best regards, Redsonic

Let me guess, you saved the money for external construction supervision in favor of a nice to have?

Security for the timely completion of the work without significant defects in the amount of 5% of the payment claim to be provided.

Says it all, really. Because

Wood flooring on the balcony is missing, plaster on the exterior facade has defects in the entrance area, usable standing height in the attic is too low (a 500 EUR discount was offered), some issues with electrical and painting work, entrance platform, point of contention regarding balcony drainage due to the platform...

did not oppose the acceptance (confirmed in writing by you), since you finally wanted to move into the new house?

Can I now simply withhold any arbitrary amount

You would have had to record that in writing in the acceptance protocol. Now the opportunity has passed.

No, a building savings contract was available and included at the acceptance. He just said I should recalculate what all that is worth and then withhold up to 5% of the building amount.

well, your house builder seems to be accommodating. we have paid everything out to be entered in the land register. the defects were successively addressed

Reduction of the price by a reasonable amount. According to prevailing case law, reasonable is up to 2.5 times the cost of remedying the defect. 2000 is probably a bit too little. Then he won't do anything anymore and will forgo the few bucks.

No, a home savings contract was present and included at the acceptance. He only said I should recalculate what the total value is

It is a tricky thing with the experts. Isn't that his job? Did you note the reservation in the protocol during the acceptance?