Is the general contractor payment plan acceptable? Thanks for tips

So does that now mean that you have to pay for the planning upfront?

No, we didn't have to. A contract was concluded for the planning service with around 8,000 euros. However, we did not have to pay the amount. If we subsequently build with another company or cancel the construction completely, the amount becomes due. If we build with the same company, the contract becomes void and the costs are included in the construction contract.

I thought the idea was quite good. This way, you can start with the planning and building permit without committing yourself to a complete construction contract. And through the planning phase, get to know and evaluate the company and the way they work.

Changes to the planning were included free of charge. I think we ended up with 6 or 7 versions, where sometimes only the front roof was added or an error in the planning was corrected between versions. We actually had bigger redesigns about 3 times.

I agree, but then these costs are also included in the first installment of the payment plan. With a real general contractor, no planning services need to be paid for, so the first installment should be smaller – or it just comes later. For example, I don't see why any money should flow at all after the contract is signed, because until then, a general contractor would not have provided any service.

For us, it will be about €14,000. For that, I have no stress with commitment interest. The building permit takes about 6 months with us, the construction about 8 months.

I don’t have to worry about commitment interest for that.

If you can pay the first installment in cash, you don’t have that otherwise either, although you usually want an irrevocable financing commitment before signing, right? From then on, the commitment period starts. Unless you gamble and arrange the financing only after the building permit. However, this could cause difficulties with subsidies (KFW), if you use them.

If you can pay the first installment in cash, you don't really have it otherwise, although you really want an irrevocable financing commitment before you sign, right? From then on, the provision period starts. Unless you gamble and do the financing only after the building permit. But then there could be difficulties with subsidies (KfW), if you use them.

The general contractor always does it this way and the KfW subsidy has always been available. I will see exactly when the contract for work comes.

Does the KfW application have to be made before the building permit?

Does the KfW application have to be submitted before the building permit application?

Quote from the KfW website:
How is the application submitted? KfW grants loans from this product exclusively through banks, savings banks, and insurance companies (hereinafter: financial institutions), which assume liability for the loans they channel from KfW. Therefore, the application must be submitted at a financial institution of your choice based on the "confirmation of application (BZA)" before the start of the project. The start of a project is considered the commencement of construction work on site. Planning and consulting services as well as the conclusion of supply and service contracts do not count as the start of the project. For applications for eligible first acquisition, the conclusion of the purchase contract is considered the start of the project. For a loan commitment, the funding conditions at the time of receipt of the application at KfW apply.

We have already submitted the KfW application because it is needed for financing and then we have it available.
Currently, the building permit application is with the municipality and we expect it to take about 3 months.
After about half of the expected time, we will apply for the financing and then, with approval, also sign the contract with the construction company.
If the building permit comes earlier, we just have to wait, and if it comes later, we will have to pay commitment interest.