Termination costs of a contract with a construction supervisor

Hello everyone,

After intensive consideration of all personal pros and cons, we decided about 3 weeks before the groundbreaking to cancel our house building project.
(We are aware that this decision came too late, but better than if the house is finished and the realization comes too late... in any case, after several weeks we still feel very good and relieved with this decision)

We signed an "architect and project management contract" with a so-called construction supervisor. The contract includes the construction description at an agreed fixed price of €321,000.
The fee for the construction supervisor is (unfortunately) not itemized.

The following service levels are listed:
- Construction planning / consulting
- Awarding of construction contracts
- Construction management until handover of keys
- Support for warranty claims...

Under § Termination it only states:
This contract can be terminated by both contracting parties only for an important reason.

There is nothing in the contract about possible cancellation costs.

The service of the civil engineer (preparation of building application documents, structural calculation, thermal insulation certificate) we paid separately (€2,169), so it is not included in the construction supervisor’s service!

The construction supervisor is now issuing us a final invoice:
Costs for sales: 2% + costs for services provided in tenders 1.5% of the contract sum = €11,242

- What does "sales" mean in this context?
- Is it common to calculate here with flat percentages?
- So far, at most earthworks and shell construction could have been tendered.

Of the €11,242, we have already paid €2,425 for stage 1 (construction planning/consulting).
Now we are being asked to pay the remaining €8,742, which I consider inappropriate in relation to stage 1 and the civil engineer’s service...

What do you think? Do we have to pay this "lesson money" to this extent or do we have any means to oppose it?

Thanks and regards,
Fenix

If you really only have to pay "11,242 €"... don't ask and just pay ;)

3 weeks before the start of construction that seems very little to me. I'm assuming HOAI. With 321k the total costs should be around 35k-40k. 2/3 of that should have been rendered. So the invoice could also have been something around 22,000.

about 3 weeks before groundbreaking, we decided to cancel our house building project.

Leaving aside the why (which does not need to be discussed here), the question arises: What now? You have a more or less fully planned house and presumably a building permit for it. Can you sell that? For how much? Who owns the land? What happens next?

I find the 11,000 euros ... fair, appropriate given the circumstances. Maybe you can involve the construction supervisors in the above questions. Or maybe you continue building a bit further (finished, except wall and floor coverings, except outdoor facilities) and then sell?

The construction supervisor is now issuing us a final invoice: Costs for sales: 2% + costs for provided tenders 1.5% of the contract sum = 11,242 euros What do you think? Do we have to pay this "learning fee" to this extent or do we have any way to oppose it?

On the one hand, there is a claim for remuneration of the contractually performed service (§ 631 para. 1 German Civil Code, § 15 HOAI) - he must prove this. On the other hand, there may be a claim for cancellation fee according to § 649 sentence 2 German Civil Code for the services not performed. So it depends on the exact wording of your contract with the construction engineer and whether a claim for cancellation fee was agreed upon. You should seek a conversation with the construction engineer. It is not necessarily the case that up to now _only_ the earthworks and the shell construction were tendered. Rhenish regards

On the one hand, there is a claim to remuneration for the contractually performed service (§ 631 para. 1 German Civil Code, § 15 HOAI) – he must provide proof of this. On the other hand, there may be a claim to cancellation fees according to § 649 sentence 2 German Civil Code for the services not rendered. So it depends on the exact wording of your contract with the construction engineer and on whether a claim to cancellation fees was agreed upon.

He is not a construction engineer, if that matters. He is a "construction supervisor," which, as is well known, is not a protected professional title. Is he even allowed to bill according to HOAI? He subcontracts an architect and a construction engineer. Regarding the latter, we have received a separate invoice, which I found realistic in the amount (€2,169) and paid without objection.

I would like to pay for the service provided as well. But of course, not more than necessary. I think it should remain fair for both sides. A cancellation fee was not contractually agreed upon.

So should I ask him to prove the service provided? Who holds the upper hand? I assume he knows his rights better than I know mine :-(

Best regards

How high would his bill have been if you had carried through with the matter? He is entitled to reimbursement of his expenses and also to lost profits.