Price increases in construction contracts related to Corona

Unfortunately, there are too many bad apples in the construction industry. I would definitely not get involved in that. With these amounts, it quickly becomes a five-figure sum that could then be due. 50/50 with the supplier and quick money. So neither with us nor with our friends was anything like that in the contract.

and each sub-item is specified with "description," "quantity" (lfm, sqm, or pcs), and "purchase price" per lfm/sqm/pcs.

Do you really believe that the GU will write their purchase prices into the offer for you? If you sign it like that, the GU can come up with some exaggerated new purchase price and sneak in a few extra thousand that way. And what do you want to do about it then? The GU and their suppliers and subcontractors have probably been working together for many years and are therefore closer to each other than GU<>customer. And the GU always tends to side with their subs, even if they may not show it to the customers. I have painfully learned that so far. There are, for example, indices for wood prices. You could link the matter to those. Basically, I don’t find it bad either, because the alternative would be that the GU prices the increase in a lump sum. But it has to be transparent for you. Maybe the GU is a really honest person, but you shouldn’t rely on that.

There are some companies that break down everything in detail right down to their own profit margin. Whether the statement is actually accurate or only meant to create the impression of dealing with a very transparent and honest business partner remains their secret.

As already stated...the risk of price changes is borne by the GU, not the customer. But it seems to be fine with you. So sign.

This morning we learned the following from a carpenter in our region in southern Bavaria: The regional timber construction companies and carpentries are increasingly having problems with production planning and cost calculation due to the massive increase in wood prices and delayed wood supply. Apparently, a large part of the wood is going at high prices to the USA. The carpenter is in contact with some regional timber construction companies and has recently learned from some that the hardly calculable additional costs are partly and now newly being passed on to the customer in the form of such clauses (must be passed on), otherwise it becomes existentially threatening. He did not know these clauses from previous years. From our internal calculation, we have calculated a wood share of about 35% of the total costs. Thus, with a 5% increase in the price of wood, we come to a starting five-digit amount of additional costs. Of course, we do not find the possible cost increase nice or acceptable, but what alternatives are there now if it is similar with other regional companies in the end. We did not want a big name in the timber construction industry (still with fixed price guarantee here?), it was there sometimes like with a vacuum cleaner salesman ("just sign here and everything will be fine"), opaque and not cheaper, we feel a thousand times better looked after with the regional provider. However, we do ask ourselves whether the current development does not even endanger the solvency of the small wood suppliers through large projects with fixed prices from previous years (in the performance contract, 8% down payment upon contract signing is not nice, but weather-tight shell at 52% payment progress). Somehow we have caught an unfavorable time: wood prices are rising massively, wood for local companies is becoming scarcer, house costs are not reliably calculable, interest rates on construction loans are rising, and the apartment is becoming far too cramped with the children.

I heard something like that through the grapevine last week as well. In my opinion, it has little to do with Corona.

It will affect other trades as well. If I look at the development here since Christmas. Something like this has never happened before. Price increases of up to 30% and sometimes 8 weeks after the last one. Delivery times unpredictable. Whether steel, hydraulics, electrical or paints. Stock items suddenly unavailable.

The small one communicates the problem, the big ones have either added 15% or a similar clause is written in the small print on page 5, 2nd column, middle.