Price increase despite fixed price!

Really intense what’s going on in the industry right now. Personally, I have never really believed in these price guarantees. It reminds me of the employment guarantee in corporations, which you can wipe your ass with if the company makes no profit – then it’s basically void.

My general contractor (GU) even outright refused to agree on a price lock. There is now a material price clause (labor costs are excluded). It was agreed to do a monthly financial check until the start of construction to see if prices actually rise to an unaffordable level, because then you still have the option of "free termination" under § 648 of the German Construction Code. Since the GU before the start of construction can basically only charge his hours or he is entitled to "5 percent", the financial damage for the client remains manageable.

If the GU doesn’t offer a fixed price, I can also just bill in separate work contracts. They all have the opportunity, when commissioned, to stock up on materials and thus secure the prices. Of course, if he takes on more orders than he can handle, he has a problem now. But that should not be at the expense of the client and is then a problem of the GU. At least until he goes bankrupt, after that it is also the client’s problem.

If the general contractor (GC) does not offer a fixed price, I can also bill directly under individual trade contracts.
They all have the opportunity to stock up on materials when commissioned and thus secure the prices. Of course, if he accepts more orders than he can handle, he now has a problem. But that should not be at the expense of the client, rather it is then a problem of the GC. At least until he goes bankrupt, after that also for the client.

I have been trying to catch a landscaping contractor for 1.5 years. Here in the region, not even the architects from my circle of friends have built under individual trade contracts. Allocation of capacities at the companies according to the motto "whoever pays more gets prioritized."
One chooses a GC among other things to have a predictable construction period and to know in advance what it will approximately cost. That worked quite well at least until mid-last year. If we couldn't afford this arrangement in case of doubt, we would never have risked it.
Yes, stocking up on materials has apparently suffered a lot in the last 12 months. I think inventories have rather become emptier and replenishing is becoming increasingly difficult.

But one thing is certain, whoever still manages to build now has proven their crisis resilience ;)

How does it work if one only signed an offer with a fixed price note before the war?

How does it behave if one only signed an offer with a fixed price clause before the war?

That will still have to be decided by the courts. Currently, I would say the fixed price guarantee still applies. The company must create a provision to be able to ensure the fixed price guarantee. However, if it is no longer reasonable for the company (which must be proven), part of the cost could be passed on to the client to avert insolvency.

This still has to be decided by the courts. Currently, I would say the fixed price guarantee still applies.

The courts will come to the conclusion that the combination of "there is always conflict somewhere in the world" and "globalized economy" cannot be used as a free pass to give price guarantees in the future just for fun. The fundamental responsibility of the merchant for his risk must continue to apply; after all, in the case of a profit "risk," he gladly continues to bear it.

The company must make a provision to ensure the fixed price guarantee. However, if it were no longer reasonable for the company (which has to be proven), part of it could be shifted to the client to avert insolvency.

You can remove the reasonableness reservation since the provision for an already issued guarantee must already have been formed; otherwise, the contractor may be held responsible for fraudulent misrepresentation.

Two sides of the same coin. You can insist on the fixed price, of course. On the other hand, the developer or contractor will then try to minimize their loss, for example by saving on materials or pushing subcontractors' prices down, until they also have to bring in money in the end.

That is unlikely to increase the chances of receiving a defect-free house.

I come from the industry, we have already adjusted prices twice this year. Such extreme price explosions cannot be anticipated. That eats up the profits of the last 5 years.
In the end, the developer goes bankrupt... and then?