Payment plan - Completion and land

  • Erstellt am 2016-08-18 10:44:21

Bauexperte

2016-08-19 11:40:06
  • #1
10% on claims _before_ acceptance? You _only_ don’t need such a bond if the construction project runs smoothly and no hidden defects appear later, as long as you live in the house. Who can exclude that with certainty? I would think this over carefully in your position, but also consult a lawyer. It depends on the decisive wording in the bond and the duration. Explaining this here – unless has the time and leisure – would go too far. It should be noted that a performance bond covers the period during which the construction project is being carried out, whereas a warranty bond covers the period after the construction phase has ended. Rhineland regards
 

BigFlow

2016-08-19 11:56:48
  • #2
I thought the warranty bond only covers the case of insolvency within the 5-year period. If the developer is not insolvent, they have to fix the defects anyway (I think so in my still intact world :))

I believe the performance bond is over 5 percent.

The whole thing is already with the lawyer. Once he has reviewed it, we will meet and discuss the contract. I will also point out the issues mentioned here to him.
 

Otus11

2016-08-21 00:29:57
  • #3


Morning,

I have written quite a bit about the bond (BÜ) here at the end of the thread:



What the warranty bond (GWL-BÜ) is worth depends on how it is designed.

The "on first demand bond" is quite close to the good old cash retention - only it is hardly possible to agree on it effectively, since the main (warranty) debtor (= your construction company) is effectively cut off from all defenses (= "no defect!" - and that is what will be disputed...). If the bond is not on first demand, it is worth little - and in fact only secures against insolvency risks. Because without an acknowledgment from the construction company or a judgment, the dear bank will not pay out from the bond, after all, it wants to recover the money internally from the construction company...

You can test whether the lawyer knows his stuff, for example, if he points out to you that the secured bond claim (without adjustments) is subject to the regular statute of limitations of the Construction Code of 3 years, but the warranty claim itself only after 5 years. Otherwise, after 3 years there may be an unpleasant surprise in a warranty dispute if you confidently wave the bond at the bank....:eek:...:p
;)
 

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