Increase in construction costs from 2017 to 2018

Hello everyone,
last year we received an offer from our main contractor.
Unfortunately, it was not implemented because we did not get the land.
After searching again, we found a new one in the spring.
Subsequently, we received a new price from the construction company, which in my opinion is excessive. Between the two offers there is one year, the increase is 10%.
Nothing has changed regarding the house, floor plan, or equipment, only the construction site is 14km farther.
The increase is said to be a mixture of increased labor costs and material costs.
How high should the realistic increase be approximately in this one year?

Thank you

Hello,

I can already imagine a price increase of 10%. Just yesterday we had a construction site meeting where the owner of the company that produces the interior plaster reported that the prices for the materials used alone have increased by 6%. If you add to that the tariff increases, which the contractor naturally also pays, and increased costs for the vehicle fleet and energy, etc., we are certainly close to the 10%.

I obviously meant increase, not rise in construction costs. Unfortunately, I don't know how to correct it in the headline and in the question.

If I assume that the house is built from 50% labor costs and 50% material costs and both increase by 6%, it would be an overall increase of 6% on the house. To reach the total increase of 10%, labor costs according to the collective agreement would have to rise by 6% and material by 14.5%. Total house costs 2017: €275k Increase in labor (50% of total costs) 2017-2018 6%: €8k Increase in material (50% of total costs) 2017-2018 14.5%: €20k Price 2018: €303k = increase compared to 2017 10% I rather do not assume that all materials have risen by approx. 15%. Or am I wrong?

I don't know if you can simply calculate 50% labor costs and 50% material costs. A load of concrete costs little, but depending on what you want to do with it, you can spend quite a long time working with the concrete. In contrast, my heat pump is quite expensive but installed quickly... However, the tariff agreement ([arbitrator's award]) in the construction industry is certain. In May, an agreement was reached on 5.7% for West and 7.4% for East Germany.

The tariff agreement of just under 6% is known to me. I have also based the above on this. The rest remains with a significant increase on all goods. Perhaps the 50/50 split is also not correct, I am not very familiar with that, it was only an assumed value.