Payment plan and unpleasant feeling

Hello everyone,

we are planning our house with ARGE Haus Berlin GmbH. We are now quite far along and we also like the house very much. However, we have now been sent the payment plan, in which the last installment is only 2% (Bauherren-Schutzbund recommends 10%). It also contains clauses that deliberately deviate from the Baugesetzbuch, which makes me somewhat suspicious.

1. Completion guarantee of 5% with the first installment.
2. In deviation from § 650 m para. 1 Baugesetzbuch and based on § 650 o Baugesetzbuch, it is agreed that the contractor (AN) may demand payment from the client (AG) for the last 10% of the total remuneration before performance if the contractor provides the client with a self-debtor performance bond from a credit institution or insurance company based in Germany.

3. Installments:

[*]Payment 8% after submission of the building application documents for submission to the building authority
[*]Payment 13% after completion of the foundation slab
[*]Payment 15% after completion of the ground floor ceiling
[*]Payment 11% after the construction has been erected
[*]Payment 10% after roofing, without covering and downpipes
[*]Payment 10% after installation of windows
[*]Payment 5% after rough installation of electrical, thermal insulation, and drywall substructure
[*]Payment 5% after completion of interior plaster, but without plaster repairs
[*]Payment 8% after completion of rough installation heating / sanitary and screed
[*]Payment 5% after completion of exterior plaster
[*]Payment 5% at the start of tiling work and completion of drywall and handover of a further 10% self-debtor bond to the client
[*]Payment 3% after installation of doors, installation of stairs, and completion after acceptance
[*]Payment 2% after acceptance

What is your assessment of this payment plan and the guarantees?

Thank you very much for your help!

You can quickly answer the question about the installments yourself.
If you finish the rest of the house with 33% of the total amount after installing the windows,
Answer Never ever.
If the company goes bankrupt, you still have 33% of the amount and the house is at most 50% finished.

67% for the shell construction. is right in that regard. But: everyone who has posted their payment plan here has almost the same or similar numbers. You usually can't get out of that either. If necessary, you can try to negotiate. However, I give that little chance of success.

However, we have now been sent the payment schedule, in which the last installment amounts to only 2% (Bauherren-Schutzbund recommends 10%). It also contains clauses that deliberately deviate from the Construction Contract Procedures (Bauwesen Gesetzbuch), which makes me somewhat suspicious.
1. Completion guarantee of 5% with the first installment.
2. Deviating from § 650 m para. 1 of the Construction Contract Procedures and based on § 650 o Construction Contract Procedures, it is agreed that the contractor (AN) can demand payment for the last 10% of the total remuneration from the client (AG) before the service is rendered, if the contractor (AN) provides the client (AG) with a direct (self-debtor) contract performance guarantee from a credit institution or insurance company based in Germany.

I see only one guarantee in the payment schedule (for no more and no less than the same 10% recommended as the amount of the security retention, which serves the same purpose).

11. Payment of 5% at the start of tiling work and completion of drywall construction and handover of a further 10% direct (self-debtor) guarantee to the client (AG)
12. Payment of 3% after installation of doors, stairs, and completion after acceptance
13. Payment of 2% after acceptance

The guarantee covering the 90 to 100 percent already comes in exchange for payment of the 90 to 95 percent in step 11. The contractor (AN) deviates from §650 to your advantage (and exactly to the extent that the payment schedule does). All green :-)

Hi, after doors and windows it's 50% with us. Maybe you can still negotiate something. Regards Olli

Hi,
after doors and windows, it's 50% for us.
Maybe you can still negotiate something.
Regards Olli

That's very fair!