Is the price increase for the general contractor after signing due to raw material shortages lawful?

  • Erstellt am 2021-05-10 11:57:01

SamSamSam

2021-05-10 12:46:48
  • #1
September was his estimate of when he can start. Unfortunately, we did not include this in the contract.
 

hanghaus2000

2021-05-10 12:51:48
  • #2
If the wood prices demonstrably really increase by 50%, then the material share is between 30 and 50%. For a roof frame, for example, costing 15,000 euros, the material costs are then 4,500-7,500 euros. Of that, 50%. We are talking here about 2,250 - 3,750 euros. That would reduce the calculated profit. Bearable for the general contractor, rather unlucky for the carpenter. A carpenter who knowingly does not calculate the expected price increases is to blame himself.
 

hanghaus2000

2021-05-10 12:55:01
  • #3


The OP does not say that. He just wants to know if that is lawful. As already explained, it could affect the client if he is responsible for the delay. For example, not approving plans on time, requests for changes, etc. In that case, the fixed-price agreement does not help either.
 

exto1791

2021-05-10 12:55:22
  • #4


Ultimately, however, the general contractor does not agree on fixed prices with the individual trade. The price increase is simply passed on from the carpenter to the general contractor. Since the two companies still want to work together in the future, it is usually split 50/50 or similar, depending on how "lenient" the general contractor or the carpenter is in this case.

In the end, the general contractor currently has less margin on all the houses - period. As I said, unless there is a clause in the contract, I would not pay an additional 2,500 euros or so - why should I? Then the general contractor simply earns less on my house. He will have to calculate his future offers more sharply to make up for the weaker profit of the current construction projects.

Entrepreneurial risk....
 

exto1791

2021-05-10 12:57:09
  • #5


Sorry, I probably didn't read the original post 100% carefully :D

--> My answer then fits better to the current situation in the fixed price area. I think that some builders are currently in that position. The general contractors certainly try to get one or the other euro from the builder as well.
 

hanghaus2000

2021-05-10 13:11:20
  • #6
You probably read post #5. Those are then the builders who wish for a general contractor. They think: It doesn't hurt me if I participate in such a dilemma. That is also OK. But nonsensical. The contractor would not give you a cent if he saves 10 euros per m3 on the concrete through good awarding or price reduction.
 

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