Turnkey fixed price during Corona or cost increase?

Hello everyone!

We have signed a turnkey fixed-price contract for the construction of a single-family house. In the next 1 to 2 weeks, the first "groundbreaking" is supposed to begin.

Our contract including the construction description does not provide for any special clauses regarding possible cost increases. It states a construction at a fixed price.

Two weeks ago, we received "general information" explaining that costs in the entire construction sector have unexpectedly risen and that the company is striving to keep the cost increases for us as low as possible. Then construction delays due to infections etc. were mentioned.

Question:

Are cost increases allowed despite the fixed price without further contractual exceptions?

That would be like charging my clients a higher invoice against the agreement because butter has become more expensive.

Best regards

Michael

Fixed price is fixed price. The risk must be borne 100% by the [GU]. For such a construction, a [GU] has approximately a 10% margin, so on average I would say about 50,000 euros. He can still compensate for that, but it is not pleasant!

A fixed price is a fixed price. The risk has to be borne 100% by the general contractor. In a project like this, a general contractor has roughly a 10% margin, so on average let's say 50,000 euros. He can still compensate for that, but it's not nice!

Thank you for the feedback.

Does it still make sense to have legal advice, just to be safe, from a tax office?

The construction contract allows for maximum construction delays due to weather conditions. I am glad that we have a small contractual penalty in the contract in case the construction is delayed.

Are cost increases allowed despite a fixed price without further contractual exceptions?

Just take a look at the patient T&Cs and the fine print first.

Just take a look at the patient terms and conditions and the fine print first.

Good point about the T&Cs. However, the contract does not refer to them, nor is there any fine print in the contract. Not even in the construction description.

I find the situation really difficult right now. Imagine the gu going bankrupt due to the price increase, for which he bears the full risk.