The Old Suffering - Turnkey/Individual Contract

Good morning dear new bending community! I am faced with the old decision... whether to have it built turnkey or to award everything individually...

First my key data: Plot - 805m2 available Living area - 160m2 Roof - gable roof 22° Floors - 2 full floors Basement - fully basemented Heating - air heat exchanger Heating system - underfloor heating on ground floor/upper floor Windows - plastic - triple glazed Bathroom - shower/bath/2 sinks on upper floor WC - WC/shower on ground floor, prepared in basement (connections) Garage - double garage 9x5m Floor plan - simple, rectangular without slopes or offsets, symmetrical Dormers - none

For the above building project we have now received an offer of €345,000, turnkey. I am now completely unsure whether I can save anything at all if I award the entire construction individually... I also know that things move fast in the construction industry and that a) you wait forever for offers and b) often have problems finding anyone who has time.

I myself am very skilled in craftsmanship (trained carpenter) and also have many acquaintances in the construction industry (bricklayers, carpenters, electricians, etc.). Unfortunately, it is just so that despite everything you have to present numbers to the bank... which in turn have to be based on reliable data... not to mention the mental aspects...

After long research and discussion I have now gathered many views and opinions. The following statements from my friends and acquaintances occupy me day and night:

- Don’t award the trades individually, you won’t save anything, it will even be more expensive if anything. General contractors negotiate with completely different prices than you can (structural engineer) - Based on experience, awarding individually on this scale results in additional costs of about €100k. General contractors negotiate with completely different prices than you can (architect)

Since the statements come from very experienced people... I think there must be something to it... What is your opinion? Be brave and award individually?

I want to be able to sleep well again ... well, but I can probably forget that for at least a year.

Thanks for your tips!

We separated the house and the basement, ultimately saving €4,000 and investing a lot of trouble, effort, and nerves. Would I do it again? No! Is that statement universally valid? Certainly not. With a lot of energy, you can probably save money by awarding contracts individually. With a 40-hour job and possibly longer travel time, I can only advise against it. Too often you are needed on site to discuss details, coordinate, etc.

We basically built turnkey. Nevertheless, we subcontracted some trades ourselves. For example, we took out the staircase but ordered it from the same general contractor’s supplier. However, we had also been in contact with several other staircase suppliers beforehand. We definitely saved money on the staircase, but invested quite a bit of time upfront. Tiling work was generally excluded due to the many special requests from the homeowners. However, the coordination was still ensured, as the tiler tiled almost all the general contractor’s houses one after the other. Exterior facilities, internal development, and garage were extra anyway.

Some other trades would probably have been better subcontracted ourselves, but only with professional support from an independent construction manager or supervisor or similar, who takes over the whole bidding/coordination process. Doing it all ourselves completely would not have worked for us in terms of time or expertise. We were lucky that my wife was on parental leave and took over all the organization and phone calls, and I work not far from the construction site with flexible working hours, so I could also drop by the site occasionally.

Whether you ultimately save money, I dare to doubt, because you probably pay attention to different quality when you have the agony of choice.

Hello Bauherren2014,

So our cost estimate was not determined by the architect using any tables from the enclosed space, but rather by the construction engineer based on experience from many other specifications, which really worked well for us. I had set aside extra money for special requests. With a general contractor (GU) you know the price, but what you get for it is stated in the construction performance description, and that can be good or bad or interpreted in various ways. And the negotiations about the construction performance description can also be very tough. And some GUs don’t even entertain certain wishes or ideas or attach prices to them that quickly kill the desire. I am currently experiencing this with acquaintances who are negotiating with a GU that I had also short-listed back then.

So our cost estimate was not determined by the architect using any tables based on the enclosed space

Not with us either, yet it didn’t add up at all, for whatever reason. But as I said, that’s another story and there were several clarifying discussions.
That’s not to say it always goes that way.
As mentioned, overall the concept of individually awarding contracts suited us and we would do it again. Certainly, we would change a few things, after all, you learn along the way.

With a general contractor you know the price but what you get for it is set out in the building scope description, and that can be good or bad or be interpreted differently.

Exactly. Accordingly, there is always the advice to have the contract reviewed in advance.

And negotiations about the building scope description can also be very tough. And some general contractors don’t even entertain certain wishes or ideas or they attach such prices behind them that the wish is quickly smothered at its inception.

In that case, I would think twice about building with that general contractor.

We also built using individual trade contracts ([Schwiegervater war der Architekt]) and saved a significant amount. The savings then flowed back into higher-quality fittings, so in the end, we actually spent more again. The advantage is that you can really choose the craftsmen/companies yourself. The craftsman can be located 150 km away – if he needs the job and offers a good price, he should get the contract. With exterior facilities, very high-quality fittings, and all ancillary building costs, we are now at around €1,700 per sqm (built without a basement). General contractors had already tried to sell us the house for €500 per sqm more... Despite the extreme stress, my wife took on the role of construction manager with the support of her father, and we would do it that way again.