Have the construction contract checked / by whom? Is it necessary?

Hello everyone,

after endless reading, searching, conversations and whatnot, we are slowly entering the final phase of our house construction project, although it’s really just beginning with that :)

We are now in the last stages with three providers and would like to sign something in the next 4 weeks if everything fits, as it currently looks.
In this context, the question came up: who actually reviews the construction contract?
I checked online and the Verbraucherzentrale in NRW currently does not offer any contract review. Who else can I turn to? Does such a contract even need to be reviewed and do the big providers even change anything in it if we have complaints? I suspect that these are always the same standard terms and conditions or are they different from project to project?

How did you handle this? I am neither a lawyer nor an expert and with such an amount of money, I would like to have a bit more security.

Best regards
Andreas

Hello everyone,

after endless reading, searching, conversations, and so on, we are slowly entering the final phase of our house-building project, although that is only when it really begins.

We are now in the final steps with three providers and would like to sign something within the next 4 weeks if everything fits, which currently seems likely.
That raised the question for me: who actually checks the construction contract?
I looked online and the Consumer Center in NRW is currently not offering any contract checks. Who else can I turn to? Does such a contract even have to be checked, and do the big providers actually change anything inside if we had complaints? I suspect that these are always the same standard terms and conditions, or are they different from project to project?

How did you handle this? I am neither a lawyer nor an expert, and with such an amount, I would like to have a bit more security.

Best regards
Andreas

It depends on what you have checked so far:

The Bible for you is the construction and service description.

There are many things hidden here that can vary extremely in cost and also differentiate the providers from one another.

It is usually the "appendix" to the contract. This should definitely be checked by you and ideally worked through together with the provider (if not done already).

Regarding the contract itself:

Even here, it is basically rarely "standard terms and conditions." Here too, the provider generally protects themselves very well, and if you simply sign blindly, you will have a very hard time being in a stronger position in case of difficulties.

Example:

Payment plan --> here, they usually try to charge everything as quickly as possible (without withholding a payment for possible problems at the very end). Therefore, I would agree on a retention of, for example, €20,000 that you can withhold until everything is really completely done. This way, you still have something as leverage.

Also look closely at the installment payments... Does the provider want to have an extremely large amount from you right at the beginning, which seems somewhat dubious? Or are the installments really in line with construction progress?

Read the contract termination clauses carefully.

Read the penalty clauses carefully.

Read the warranty clauses carefully (e.g., important for waterproof basements).

Is there an agreed construction period? If yes, and the provider does not meet this time, is there a regulation somewhere that you receive compensation (e.g., in the form of monthly rent)?

and so on and so forth...

So really read every single word very carefully!

Thank you very much, that already sounds good. Then I will take a close look at it exactly as you described :-)

Best regards
Andreas

You can also become a member of the Bauherren-Schutzbund. They have both specialist lawyers for contract review (and possible disputes) as well as construction experts for the highly recommended accompanying quality control during construction. It costs a few thousand, but it is worth it because - as you rightly say - we are not experts and cannot check these things ourselves.

Client protection e.g. [Verband Privater Bauherren] provides experts. If you take one for the entire project, it might cost around 2,000 to 4,000€. That is not expensive for expertise. If you only have the contract reviewed, it might cost around 500€, more or less.

It always depends on what you're in the mood for.

Anyone can acquire knowledge themselves and read up/work into the topic.

If you have the desire/time/motivation for it, then I would save that money.

If you already sign directly with a reputable partner, you should definitely be able to save that amount...

That's why I think much more of regional construction partners than nationwide prefabricated house providers (especially in such matters).