Price increase despite fixed price!

To put it differently: Who pays the fun prepayment penalties in case of loan withdrawal? Who pays you the opportunity costs of the now much higher interest rates?

Who’s even talking about withdrawal? It’s just getting more expensive, but the contract doesn’t expire.
Probably an increase of €50k in price is still much cheaper in the end than paying 1% more interest – but that’s just by the way.

That would be laughable if it were that simple...

It really is that simple – if the circumstances fit.

The homebuilder should just give up a 10% margin and only earn 5% or 10%...

That’s not the point at all. We’re talking about additional costs of 20% or maybe even so much that the homebuilder takes a loss. With such "small" price increases, we’re miles away from §313.

And the total prices certainly have not risen by 20% overall because of the war (just the labor share alone makes a significant difference in house construction)

That would have to be proved by the homebuilder. Without proof, there’s no point in even considering a contract adjustment. The rule still applies: fixed price means fixed price.

What a joke!!!!! Try to have a conversation, decline, if necessary with a lawyer.
Put differently: Who pays the fun prepayment penalties when withdrawing the loan? Who pays you the opportunity costs of the now much higher interest rates?
That would be ridiculous if it were that simple...

This is what, for example, our chambers of crafts say - it is the result of a decree from the Ministry of Construction (refers to various building materials, can be looked up online. valid initially until 06/30). So the 313 can very well be applied "that easily". Oh yes, a takeover of more than 50% of the additional costs is considered inadmissible by the decree.

Who’s talking about a withdrawal? It’s just getting more expensive, but the contract does not expire.
Probably an increase of €50k at the end is still much cheaper than paying 1% more interest – but that’s just a side note.

It really is that simple – if the circumstances fit.

That’s not what it’s about. We’re talking about additional costs of 20% or maybe even so much that the homebuilder takes a loss. With such "small" price increases, we are miles away from §313.

The homebuilder would have to prove that. Without proof, there is no point in even considering a contract adjustment. The rule really still applies: fixed price is fixed price.

Regarding the last point: no one will be able to do that, as prices have not risen that much. I assume the contract was concluded in 2022.

Thank you very much for the numerous responses! It is important to me that the company discloses the price increase. After that, I can decide what to do. I secured financing cheaply in January; if necessary, I will use it for another project or no construction under these circumstances, namely for the purchase of an existing property. However, this is the last option we want to consider.

We want to see what the company demands from us now; it makes a difference to us whether it is 5% or 20% and whether the price is then guaranteed or not. Or if the bells will ring again in the event of another invasion.

We wanted to do the interior work ourselves anyway, as we have the necessary craftsmen in the family. We could also consider switching to a shell construction company if the increase is too high.

In my opinion, every entrepreneur should have introduced a price adjustment clause based on the experiences from Corona. But they didn't. So that's their bad luck.

Received a similar letter. Contract conclusion February 2022 and acceptance by the GU only at the end of March. Therefore, the war can no longer be counted as a reason here. I will legally contest this if necessary. Where are we if contracts can be unilaterally adjusted. I also cannot reduce the construction sum just because fuel is more expensive and I then have less left over.