Process of construction planning & building - Is a preliminary contract with the construction company necessary?

Hello everyone,

I would be very happy to receive answers to my questions and thank you in advance.

Current situation: Land available (building land with development plan)
Target situation: Development of the land with a single-family house including a basement with DEKRA construction supervision (acceptance of the individual trades)

Attached are the rough steps of building a house as I imagine it. Please feel free to add and/or correct the order.

1. Preliminary discussion with the preferred prefabricated house company
2. Building substance check and review of experience reports about the prefabricated house company
3. Verification of the prefabricated house company (financial situation)
4. Preliminary sampling of the offered equipment package for the fittings & factory tour of the production
5. Decision about the prefabricated house company made
6. Architect planning including soil testing and structural analysis
7. Creation of building plans, energy demand calculation, cross-section planning, living space calculation
8. Submission of building plans to the municipality (estimated up to 3 months until approval)
9. Loan application must be submitted and approved
10. After approval of the plan and the loan application (9 months interest-free provision period) signature at the prefabricated house company (contract of course checked for scope and completeness of trades)

11. Start of production by the prefabricated house company
12. Excavation, groundwork, and laying of supply & wastewater, internet, gas lines
13. Basement construction begins, finished basement including insulation
14. Basement construction completed
15. After completion of the house production delivery and assembly on basement slab
16. Shell construction stands
17. Roof truss stands
18. Interior work starts (electricity, insulation, plastering, etc.)
19. House finished, final acceptance
20. Move-in and completion of driveway, garden, etc.

Question:

Regarding point 2: Is some kind of preliminary contract with the prefabricated house company necessary here? The architect will hardly perform his work without financial security.
Regarding point 14: Is it disadvantageous if the basement is completed and the house assembly takes place a week later?

- By when do I need to have the bank financing at the latest? The 9 months from point 7 seem very tight to me! (Production of the house walls, etc. already takes several months)
- Is it correct that payments to the prefabricated house company are only made after "approval or acceptance" by the DEKRA building expert I commissioned?

1. Preliminary discussion with the preferred prefabricated house company
2. Building substance inspection and review of experience reports about the prefabricated house company
3. Review of the prefabricated house company (financial situation)
4. Loan application must be submitted and approved
5. Decision about the prefabricated house company made
6. Signature with the prefabricated house company (contract is, of course, checked for scope and completeness of trades)
7. Preliminary sampling of the offered equipment package for the furnishing & factory inspection of the production
8. Architectural planning without soil sample and structural analysis
9. Building plan creation, energy demand calculation,
10. Soil sample and structural analysis
11. Start of production by the prefabricated house company
12. Excavation, groundwork without laying of supply & wastewater, internet, gas lines
13. Basement construction begins, finished basement including insulation
14. Basement construction completed
15. After completion of the house production, delivery and assembly on basement slab
16. Shell construction erected
17. Roof truss erected
18. Laying of supply & wastewater, internet, gas lines
19. Interior work of the house starts (electrical, insulation, plastering, etc.)
20. House completed, final acceptance
21. Move-in and completion of driveway, garden, etc.

That’s roughly how it goes.

Sampling and everything that causes work for the prefab house provider always after signing.

You should also have the loan in your pocket beforehand. Better safe than sorry. Unless you are 1000% sure that you will get a xxxk€ loan approved.

From point 5 onwards, the financing should be tackled. From point 6 onwards, there is almost no turning back. And that is where the financing should be set.

9 months is the timeframe with "normal" order volumes. Currently, it is probably rather optimistic. It varies from provider to provider. And the 9 months rather count after all reservations have been cleared, i.e. financing OK, assignment OK, building permit OK, etc. (point 10).

Better plan for 12-15 months currently. You will only know for sure after confirmation of the installation date.

1 week between the basement being finished and the house installation is already fast. Normally there is a bit more leeway. The basement has to be surveyed to see if the FH fits on it. And a delay with the basement can happen.

There are FH companies that work with external architects. This is how it looks for you. You don’t need a contract with the FH company. Of course, you have to pay the architect, a few thousand €. And the plan is only valid for this FH company.

When the house has to be paid is stated in the contract. Some companies advertise payment only after acceptance. If this is also stated like this, then it will be so.

Who is the favorite? (also by PM)

1. Preliminary discussion with the preferred prefabricated house company
If you want to build with a prefabricated house company that certainly doesn’t hurt (when I read the further questions, I assume you mean a prefabricated timber frame construction)
2. Building fabric inspection and review of experience reports about the prefabricated house company
Certainly doesn’t hurt
3. Verification of the prefabricated house company (financial situation)
How do you want to do that?
4. Pre-sampling of the offered equipment package for the furnishing & factory tour of the production
Unlikely that anyone will go along with that
5. Decision about the prefabricated house company made
hm
6. Architect planning including soil sampling and structural analysis
With a prefabricated house company you usually don’t start with an architect now...
7. Creation of construction plans, energy demand calculation, cross-section planning, living space calculation
Actually uninteresting for them - just planning
8. Submission of construction plans to the municipality (time until approval estimated up to 3 months)
9. Loan application must be submitted and approved
I would check earlier whether and what is possible
10. After approval of the plan and loan application (9 months interest-free commitment) signature with the prefabricated house company (contract is of course checked for scope and completeness of trades)
Either you build with a prefabricated house company, then you will have to sign much earlier, or with an architect and individual trade assignment, but then it works differently
11. Start of production of the prefabricated house company
A building is not produced
12. Excavation, ground works and laying of supply and disposal water, internet, gas pipes
Supply lines usually only come after the house is built
13. Basement construction begins, finished basement including insulation
14. Basement construction completed
15. After completion of the production of the house delivery and assembly on basement slab
16. Shell of the house is standing
17. Roof truss is standing
18. Interior finishing of the house starts (electrical, insulation, plastering etc.)
19. House completed, final acceptance
20. Moving in and completion of driveway, garden etc.

From point 5 onwards, the financing should be addressed.

Exactly.. and between 5 and 6 the contract will be signed

Regarding point 2: Is some kind of preliminary contract with the prefabricated house company already necessary here? The architect will hardly carry out his work without financial security.

Point 2 is not related to your question: The architect often only starts after the contract is signed. After all, there are standard houses you can base yourself on price-wise.

Regarding point 14. Is it disadvantageous if the basement is completed and the house construction takes place weeks later?

Hmm... you have to ask the house building company, they are the contact person.

- By when do I need financing from the bank at the latest? Nine months from point 7 seems very tight to me! (Manufacturing of the house walls etc. already takes several months)

Yes, you often pay commitment interest by then. You should definitely plan for that.

- Is it correct that payments to the prefabricated house company only take place after "release or acceptance" by the DEKRA building expert I commissioned?

No. Payment 14 days after completion of the work. When the expert visits the construction site has nothing to do with the builder. You commissioned him, not the house building company.