Price increases in construction contracts related to Corona

Increase intake by 5%

Great, thanks for your assessment and the additional tips ! The two passages initially just sounded like extra costs to me and I just couldn’t quite place it, but now it’s much clearer :) Our buffer would still cover a certain price increase

What happens at 6%? Do you then pay 1% and the general contractor 5, or do you all pay 6?

I understood it as we only have to contribute after 5%. But I’ll ask about that at the next appointment.

Friends who built with the company and also do craftsman work themselves recommended not to take an expert , since everything went very smoothly and uncomplicated overall. But since we hardly know anything about construction matters, it would probably be advisable.

With the contract signing, the submission planning and completion of the building application until submission begins. In this phase, a soil survey, a more detailed assessment of development costs with a civil engineer on site (currently calculated generously for financing planning), and also a tree inspection by an arborist due to some old trees will take place. If completely exploding incidental construction costs arise (e.g. due to unexpected contaminated sites or difficult soil, groundwater standing up to below the ground, root protection required by the building authority... I have read quite a few horror stories), could a right of withdrawal with payment for services rendered so far be agreed in the building contract? So far, such a right of withdrawal besides the usual termination right refers to the case of a building permit not being granted (with exact specification of the then incurred costs, which sounds fair).

Why don’t you have the preparatory measures carried out in-house beforehand and have an offer for the house created based on the results? That way, you are at the mercy of the [GU] either way and he can basically determine the additional costs freely.

You all talk about a fair arrangement regarding the 5% takeover by the GU.

But surely everyone knows that he has already included exactly the 5% in his offer price. So the TE pays the 5% either way – whether the price increase happens or not. Now setting aside that the 5% is the minimum. More likely, until 2022, it will be 10-20%.

Tip for financing: Take a solid buffer with the bank and agree on an extraordinary SoTil option for the first year. Then you are secured and save yourself possible expensive refinancing.

The contractor must provide proof of the price change, the contractor bears changes up to an amount of 5%.

That sounds vague to me and non-transparent for the client. I would have it documented in writing exactly how these prices are determined. You can’t even trace how the price is now and how the price will be at some point in the future.

I would never sign something like that. You have nothing in your hands. [GU] can basically present anything to you. Believe me, his wholesaler writes every number on a piece of paper for him.. and where is the starting reference point anyway? You would now have to get his current purchase conditions including equity along with your offer, so that you have a basis for price calculation.