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

  • Erstellt am 2021-05-10 11:57:01

Tolentino

2021-05-10 13:11:41
  • #1
Wasn't that only due to reasons not attributable to the contractor? So if, for example, the building permit took that long, then he is out, and the price guarantee no longer applies...
 

nordanney

2021-05-10 13:12:26
  • #2

It is fundamentally true that a price is a price (fixed price is, by the way, just a term, not a legal definition). But that doesn’t help you if the general contractor leaves you in the lurch (whether in terms of time or quality), or in the worst case goes bankrupt because none of his customers are willing to make concessions.

That’s why you have to deal pragmatically with the general contractor’s demands and not react categorically with "That’s a fixed price."
 

exto1791

2021-05-10 13:13:47
  • #3
Right, that's what I was referring to as well. That's how it is... in the end, it's neither my "acquaintance" nor a "friend," nor will he ever thank me again. Personally, as a builder, it hurts me much more than the general contractor – that's just how it is. And as you say: If the general contractor has any chance to get back 10% from his trade or the like, he will NEVER share those 10% with you :D You have to see where you stand...
 

hanghaus2000

2021-05-10 13:15:38
  • #4
Complaining is part of the business. I once learned that.
 

exto1791

2021-05-10 13:18:18
  • #5


No, it is not. The contract is legally binding. The GC MUST build you the house at this price. If bankruptcy occurs, then we are dealing with a completely different case – no question. In addition, he MUST also build my house; that is what the contract was concluded for. Only bankruptcy releases him from this contract. You have to be much "tougher" as the client. Ultimately, at the current stage, almost every GC will try to squeeze the maximum out of the client.

I don't even want to know how many GCs take advantage of this situation and try to squeeze out the last penny... See Corona aid – exactly the same game. If you have any opportunity, you try to increase the profit.

Entrepreneurial risk... That's just how it is, but for that, he also earns a lot of money. If he can't manage that and doesn't manage to add a markup on the next houses, then he is also partly to blame. The order books are full!! They definitely will still be full in two years. Then you just break even with 2-3 houses...

People are currently even willing to pay 30% more? That won't end anytime soon...

Ultimately, no one will thank you for it... You have to defend yourself. Personally, I wouldn't even be casually willing to pay 5k more for the same service just because prices are rising right now? What do you think how often prices have already dropped by 10% and offers that were already agreed upon were also sold AT THE SAME PRICE? Nobody gives you anything for free...
 

Hausbauer2021

2021-05-10 13:19:37
  • #6
Exactly! We are not talking about building a small garden shed here, but a house in which you want to feel comfortable. The following scenario: The general contractor is building 5 houses in parallel, wood is scarce and more expensive, and he asks the builders to share the additional costs. Now let's assume 2 out of 5 have contributed. Which houses do you think will get the wood first? This is about much more than just the additional costs. Of course, the risk usually lies with the contractor, and especially with big players I also do not think it is correct that they demand a correction. But a small company that perhaps already sets its margins tighter so that you get a great house at an affordable price, I might still support under such circumstances. For me too, €5000 is a lot of money, but you have to see the bigger picture. But that's just my opinion.
 

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