Price adjustment clause in the contract with the general contractor

I can somewhat understand the action taken by the main contractor given such price jumps.

From the main contractor's perspective, I can also comprehend the "action." However, the clause resembles a carte blanche with the motto: "I can adjust the price retroactively as I please and justify it with the price increase." In this sense, the clause renders the idea and advantage of a main contractor absurd.

I would not sign it like that. There should be at least a max % specified.

What do you do if someone gets a poor credit rating and only receives goods from the supplier at exorbitant prices? He mercilessly passes them on to you with the clause.

If nothing is stated in the contract - is there then an option for the general contractor to pass on adjustments to the client in case of enormous price changes in the market (e.g. over 30%)?

I have also read through our contract in detail and did not find any clause that grants him this right.

Only the applicable provisions of the VOB shall apply according to our contract.

So in our contract, the only addition is that the applicable VAT rate at the time of handover of the house applies. Otherwise, a fixed price according to the construction service description.

But that is not in accordance with the tax office’s requirements. If there is a change in VAT, the portion already completed must be billed, and only the remaining work is to be calculated with the changed tax rate.

Price escalation clauses are common in the construction industry. Only single-family home builders have not used them so far, as construction times are short. As the OP described it, that is nonsense and should definitely not be signed.

With price increases in materials of sometimes well over 10% per year, the request is quite understandable. A construction boom naturally has its excesses.

Normally, price increases are factored in. Those who cannot do that should better not build.

But that is not in accordance with the tax office's intention. If there is a change in VAT, the already completed part must be invoiced and only the remaining service calculated with the changed tax rate.

The discussions kept recurring last year. The forum's conclusion was relatively unanimous that in the case of construction with a general contractor, there is no interim billing, since the acceptance date = delivery date and time of performance, so overall the acceptance date applies for the calculation of VAT.