Is the payment plan from the general contractor too hasty?

Hello house construction forum users,

we are about to finalize with a general contractor (small developer) and have now received the payment plan. In my opinion, the payments are somewhat premature compared to the realtor and developer regulations.

What do you think? Can anyone give me a tip?

5 % after handing over the building application documents
(after individual planning, building regulations pre-approval, completion of the building application and drainage drawing)
4 % after receipt of the building permit
(incl. approval of the drainage drawings)
14 % after completion of the base
(incl. completion of the basic pipelines, earthworks in the base area, creation of foundations and Thermobodenplatte)
15 % after completion of the reinforced concrete ceiling above the ground floor
(incl. completion of the shell walls ground floor)
18 % after erecting the roof structure
(incl. lathing and installation of the underlay membrane)
21 % after installation of windows and exterior doors
(incl. completion of the shell walls attic)
7 % after predominant completion of the interior plastering
(incl. rough electrical installation)
10 % after laying the screed
(incl. laying moisture barrier and screed insulation as well as rough heating installation)
2 % after predominant laying of the tiles
(without skirting boards in the area of the interior doors)
2 % after installing the staircase
2 % after final acceptance
(and installation of the interior doors)
_______
100 %

Thank you very much for your help!

Seems definitely out of the question to me. You already pay 77% for the closed shell. After laying the screed, you are already at 94%. That is not acceptable at all, if you ask me.

Uh, that sounds bad, especially since we are quite happy with the provider (also from 2 independent sources). Does that contradict the requirements of the [Makler- und Bauträgerverordnung]? I cannot clearly assign the terms.

The shell construction is still within the maximum range, exhausted except for the last percentage point. But 94% after the screed is not acceptable. The broker and property developer ordinance provides for a 94.4% payment upon readiness for occupancy, which is hardly given with the mere installation of the screed.

Hello,

we are close to finalizing with a general contractor (small developer) and have now received the payment schedule. In my opinion, the payments are somewhat premature compared to the broker and developer regulations.

They are not "premature" as they are always invoiced only after completion of a work "x". But it is harsh for the client, and I would seriously consider whether I would submit to this payment schedule.

5 % after submission of the building application documents
(after individual planning, building regulation pre-check, completion of building application and drainage drawing)
4 % after receiving the building permit
(including approval of the drainage drawings)
14 % after completion of the foundation slab
(including completion of the basic pipelines, earthworks in the foundation slab area, creation of foundations and thermal ground slab)
15 % after completion of the reinforced concrete ceiling over the ground floor
(including completion of the raw construction walls on the ground floor)
18 % after erecting the roof structure
(including battens and installation of the underlay membrane)
21 % after installation of windows and exterior doors
(including completion of the raw construction walls on the attic floor)

Up to this point, one would classically speak of a closed shell; at this stage of construction, no more than 58-60% should have been paid. The reason is quite simple: if you encounter problems – for whatever reason – with your provider and termination threatens, you can have your house completed with the remaining 40% of the construction sum.

If everything goes smoothly – which everyone wishes for you – the construction progress is not overpaid, the full profit is not yet in the provider’s accounts, so they still have a legitimate interest in completing the owed service.

7 % after predominant completion of the interior plastering work
(including rough electrical installation)

This wording is funny – who defines "predominant"? It is logical that the rough electrical installation must take place before the plastering.

10 % after laying the screed
(including laying of moisture barrier and screed insulation as well as rough installation of heating)
2 % after predominant laying of the tiles
(without skirting boards in the area of the interior doors)

Both are nice formulations ...

2 % after installation of the staircase
2 % after final acceptance
(and installation of the interior doors)
_______
100 %

No developer contract can be the basis for the present payment schedule; otherwise the first payment steps would look different; you probably mean a normal contract for work without land. If this assumption is correct, then in my opinion some installment payments are missing – I do not consider 11 to be sufficient, or it is continuously overpaid.

A payment schedule that does justice to both parties should look something like this:

[*]6% - after submission of building application
[*]6% - upon granting of building permit
[*]10% - after completion of basement slab/floor slab
[*]10% - after completion of ground floor walls
[*]10% - after completion of ground floor ceiling
[*]5% - after erecting the roof structure
[*]5% - after roofing
[*]5% - after installation of windows/glass
[*]10% - after rough installation of electricity, sanitary, heating
[*]7% - after completion of interior plaster
[*]10% - after application of exterior plaster or cladding
[*]10% - after final installation of electricity and heating, staircase
[*]4% - after installation of tiles, interior doors
[*]2% - after handover or acceptance, latest before use of the property by the client

What is important in all payment schedules is that the "big chunks" are not only at the front but also evenly – preferably fairly according to the delivered services – found in the latter part of the payment schedule. It is also clear that with a payment schedule like the above, you will have to visit your bank almost every other week. Better, in my opinion, a few more trips and largely consistent performance versus payment due dates.

Kind regards

Ok, thanks for the super fast response! Since we have negotiations tomorrow, which numbers should I then adjust? Or rather, insist on?