Catsuma
2021-04-04 21:16:09
- #1
Hello everyone,
I have been reading a lot in this forum since planning my own house and have already taken away some helpful insights, thanks for the great contributions here! :) Since I am now about to finalize a construction contract myself, I would greatly appreciate your opinion on 2 passages in the contract. I planned a timber-frame house through a regional, small construction company (as a general contractor, no self-performance) with a good reputation in the region and have now received a construction contract containing the following passages:
1) ...the prices are fixed based on the purchase prices at the date of the offer preparation. Due to Corona, prices can currently change significantly. If during the execution (planned 2022) there is an increase in purchase prices compared to the date of the offer preparation by more than 5%, an adjustment to the new price will be made. The contractor must provide proof of the price change; the contractor bears changes up to an amount of 5%.
2) ...the completion date (rather generously set at 2 years) requires a building permit to be granted within 4 months after the building application is submitted. If the building permit is delayed, the completion date will be postponed. If the completion is delayed by more than 6 months (i.e., 2.5 years), the final invoice amount will be increased by the market-standard price increase (3%).
Both points can unpleasantly change the total costs of the house construction.
Regarding the first: I have of course noticed that timber prices have risen significantly recently and can therefore understand that regional, smaller house building companies want or have to protect themselves. But with a massive increase in costs, I feel quite badly off (whereby 10% more timber material costs should not result in 10% higher total costs). And if the execution begins in 12 months, a price increase would presumably already apply automatically.
Regarding the second point: in 2020, the average processing time of the building authority for private building applications was 18 weeks... the building authority cites Corona as the reason for the long processing time. A delay of more than 4 months is therefore practically inevitable.
I have a meeting about the construction contract soon and will of course address these points openly, but I have also come to the conclusion that there is no way around a contract expert.
How do you see these 2 passages? Is this now common for small house construction companies?
Best regards,
Cat
I have been reading a lot in this forum since planning my own house and have already taken away some helpful insights, thanks for the great contributions here! :) Since I am now about to finalize a construction contract myself, I would greatly appreciate your opinion on 2 passages in the contract. I planned a timber-frame house through a regional, small construction company (as a general contractor, no self-performance) with a good reputation in the region and have now received a construction contract containing the following passages:
1) ...the prices are fixed based on the purchase prices at the date of the offer preparation. Due to Corona, prices can currently change significantly. If during the execution (planned 2022) there is an increase in purchase prices compared to the date of the offer preparation by more than 5%, an adjustment to the new price will be made. The contractor must provide proof of the price change; the contractor bears changes up to an amount of 5%.
2) ...the completion date (rather generously set at 2 years) requires a building permit to be granted within 4 months after the building application is submitted. If the building permit is delayed, the completion date will be postponed. If the completion is delayed by more than 6 months (i.e., 2.5 years), the final invoice amount will be increased by the market-standard price increase (3%).
Both points can unpleasantly change the total costs of the house construction.
Regarding the first: I have of course noticed that timber prices have risen significantly recently and can therefore understand that regional, smaller house building companies want or have to protect themselves. But with a massive increase in costs, I feel quite badly off (whereby 10% more timber material costs should not result in 10% higher total costs). And if the execution begins in 12 months, a price increase would presumably already apply automatically.
Regarding the second point: in 2020, the average processing time of the building authority for private building applications was 18 weeks... the building authority cites Corona as the reason for the long processing time. A delay of more than 4 months is therefore practically inevitable.
I have a meeting about the construction contract soon and will of course address these points openly, but I have also come to the conclusion that there is no way around a contract expert.
How do you see these 2 passages? Is this now common for small house construction companies?
Best regards,
Cat