Surcharges of 10% despite a fixed price contract

2022-03-28 22:46:55

Hello everyone,

we signed a fixed-price contract 12 months ago and were now confronted with additional costs of 10% shortly before the start of construction due to the current situation! Is anyone in the same situation and how did you come to an agreement?

Thank you very much!

2022-03-28 23:46:04

What are the conditions to which the fixed price is tied with you? If you no longer meet them, e.g. due to a delayed building permit, additional charges can of course be applied.

2022-03-29 00:40:46

Presumably out of the construction price lock. Only option is to grit your teeth and get through it...

2022-03-29 08:15:38

We had agreed on a fixed price, without a material price adjustment clause and without a wage adjustment clause. The additional costs are justified by the construction company due to rising raw material prices. The 10% additional costs refer to the total house price. The construction company is now putting pressure on us; if we do not agree to the additional costs, they will not start building. We also have a Bafa subsidy that will expire in February 2023 if our project is delayed. The construction company does not agree to a settlement.

2022-03-29 08:47:07

We had agreed on a fixed price, without a material price escalation clause and without a labor cost escalation clause. The additional costs are justified by the construction company with the increased raw material prices. The 10% additional costs refer to the total house price. The builder is now putting pressure on us, if we do not agree to the additional costs, he will not start building. We also have a Bafa subsidy, which will expire for us in February 2023 if our project is now delayed. The builder is not willing to negotiate a settlement.

I would strongly recommend you seek legal advice. A letter regarding a possible construction delay recently arrived at our home and we sought an initial legal consultation; there, we were basically dictated what would be sensible to write in a letter to the general contractor. Our consultation cost just over €100, but we also had offers from other firms for over €400. I would only use a lawyer for advice and not confront the construction company directly.

2022-03-29 08:53:22

If you show up with a lawyer at the builder even before the start of construction, then these are the best conditions for a smooth contractual relationship.

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Surcharges of 10% despite a fixed price contract

Lioness

WilderSueden

SoL

Lioness

HnghusBY

Peter Pohlmann