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

  • Erstellt am 2021-05-10 11:57:01

Acof1978

2021-05-10 13:25:02
  • #1


Not always. Our main contractor fixes the prices with his regular suppliers after the client’s approval. For example, we gave our approval in October 2020. The building application was submitted in December. Due to the conversion of the plot and the "quick" processing by the forestry authority, construction will only start at the end of July or August 2021. The main contractor confirmed again last week that the prices will remain valid until the house is completed.
 

hanghaus2000

2021-05-10 13:27:17
  • #2
This is lesson 1 of successful companies. By the way, it has always been like this. However, this is not about the client but about project management with profit.
 

SamSamSam

2021-05-10 13:28:04
  • #3
I also agree that I don't want to get into a tussle with the general contractor over these sums. But I also don't want to show any willingness to bear these costs completely! As mentioned at the beginning, this is not a company that builds multiple houses per year. And already being at odds before construction even starts certainly doesn't help that my house is built with attention to detail :D Thanks a lot for all these good answers!
 

Hausbauer2021

2021-05-10 13:31:08
  • #4
If we were to find ourselves in such a situation, I would, for example, propose to meet halfway of the amount the GU names. 50/50 because he actually has no claim to it, but you show good will with it and ideally everyone is satisfied.
 

nordanney

2021-05-10 13:34:22
  • #5
As the saying goes: "Having the right and getting the right are two different things." I have been witnessing the development as a financier for over 20 years. And I can tell you that as a consumer you can only lose if you exclusively play the "strong man." Let me ask you directly. What do you do if the general contractor simply does not build or only sporadically appears at the construction site? Then you are the tough guy and complain?! And? What actually happens? You keep waiting for your house. You get help from a lawyer – but you still wait for the house. The lawyer writes to the general contractor for the 37th time. And? He simply does not deliver. And you are still waiting in your house. Because it’s not only the general contractor, it’s also his subs who simply no longer come because the general contractor cannot accept their increased prices either. He also has contracts – and as you say, one has to stay tough. But in the end, the fool is always the customer. We don’t see such things daily at our company, but very regularly. What all happens...
 

hampshire

2021-05-10 13:34:24
  • #6
The contractual exclusion criteria do not apply. With the fixed price, the supplier assumes the price risk. Price increases are not force majeure. This would imply inevitability. For example, by holding inventory to minimize risk, the supplier would have had a way to avert it. Based on the text excerpts from the contract, the GU cannot make a justified claim. However, something may be stated elsewhere in the contract. I find the advice from to see this pragmatically very good. If you solve a problem together at the beginning, the likelihood of getting better performance in the end increases. If you remain irreconcilable at the first problem and implicitly ascribe greedy intentions to the other party, the project will take a different course – the risk of stress and lack of quality increases.

I find that pragmatic! Good luck.
 

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