Price increases in construction contracts related to Corona

I would definitely not sign something like that. You have nothing in hand. The general contractor can basically present you with anything. 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 receive his current reference conditions including equity for your offer as well, so that you have a basis for price calculation.

One could link it to the construction price index of the Federal Statistical Office for the relevant quarters. That would be a measure by which the price increase could be fairly and objectively traced and which is independent of silly decisions of the general contractor.

Without such an objective basis, I also see the proof as arbitrarily manipulable (in both directions...)

Many people agree that this is fair and that the [GU] just wants to protect itself. But since when is it common for the [AG] to take on the entrepreneurial risk of a [GU]? Do you also get reimbursed if the price of wood drops and the profit margin increases? You go to a [GU] precisely for cost and planning security. Sounds like nonsense to me, I wouldn’t sign that.

You all write about a fair arrangement regarding the 5% assumption by the GU.

I also stumble over the term "fair". I buy a service at a certain price and afterwards the client has the possibility to increase this price. It may be common practice, but personally I do not find that fair. Especially when buying a house, if more and more costs keep coming up afterwards, which you were not informed about beforehand. Sampling is also such an issue. Before buying the house, it is not possible to sample, so that during the sampling process significant additional costs can arise ... and as the builder you don’t know if these will become necessary, because you cannot sample the house in advance.

I also stumble over the term "fair." I buy a service at a certain price, and afterwards the service recipient has the opportunity to raise this price. It may be common practice, but personally I do not find that fair. Especially when buying a house, when more and more costs inevitably arise that you were not informed about beforehand. The selection of fittings is another such issue. It is not possible to select fittings before buying the house, so that considerable additional costs can arise again during the selection ... and as the builder, you do not know whether these will become necessary, because you cannot select fittings beforehand.

Who says that things are fair in construction? It's about money, not fairness. Only in kindergarten does everyone get a medal. As the builder, you only have to ensure that you, as the weakest link in the chain, are not taken advantage of and that you are satisfied after moving in. Those who built 20 years ago were not fair to the craftsmen either.

Without providing a purchase price, we would not do that. We received a comprehensive, detailed cost calculation of the house with a listing of costs for every nook and cranny of the house. The entire house is divided into countless sub-items, and each sub-item is given with "designation," "quantity" (lfm, sqm, or pcs), and "purchase price" per lfm/sqm/pcs. Based on a cost calculation of a house from acquaintances in October 2020, we were able to see that the purchase price, for example, for the wood items has increased by about 10% in the last 6 months, while other items like concrete (sqm slab) or reinforcing steel/ton have not increased or only minimally (< 1%) increased. Considering the wood price development since October, the 10% increase did not seem exaggerated to us. Which, of course, gives hope and anxiety that the wood price will not continue to rise so strongly until construction begins next year. The information should actually allow a good comparison, right? What we do not yet know exactly are the costs of excavation, drainage, and development (approx. 40m long). This was estimated after the site visit for financing purposes, but it will only be more precise once a civil engineer & co have been on site. That will only happen after the contract is signed—the general contractor said that he cannot send all parties to the site without compensation before receiving something in return (which is the construction contract). Of course, we could inquire locally with a civil engineer whether we can get an independent cost estimate.

Based on a cost calculation of a house from acquaintances in October 2020, we were able to see that the purchase price for items made of wood, for example, has increased by about 10% in the last 6 months, while other items such as concrete (sqm of the foundation slab) or reinforcing steel/ton have not increased or only minimally (< 1%) increased. Considering the price development of wood since October, the 10% increase did not seem exaggerated to us.

Did they build a solid construction or a timber frame/prefabricated house?

Do you know what proportion of the total construction costs is accounted for by the construction wood?
So, what total construction cost increase are we talking about if the price of wood increases by 10%?

That would really interest me!