Turnkey fixed price during Corona or cost increase?

I wouldn't sign that. For example, in our hospital network, there is the rehab clinic (yes, different sector, etc.) that has been operating at a loss for years, if not decades. It is kept alive because: a) fixed costs can be covered that would still occur if we closed it. b) it belongs to the portfolio and they want to offer the complete package. From ventilation -> rehab.

They can't be compared at all. Your example is in the interest of the "common good," the contractor's less so.

Now let's think the other way around. The builder loses his job, gets a new one that pays 10% less. Does the contractor say: "We'll lower the price by 10% now?" Just as the client assumes the financing risk, the contractor should bear the entrepreneurial risk. And I also assume that when a fixed-price contract is signed, the general contractor ensures prices and materials at the latest the next day.

Of course the contractor doesn’t say that. He already gets his money or stops building. And what leverage does the client have? Not paying the invoice? Then the contractor also stops building. It always comes down to the same thing. Also, the contractor can’t secure all materials, maybe some for the shell, but then it stops there. Just think about up-listing. What should he secure there? He also can’t order the heating system in advance; he simply can’t front all that. He would be bankrupt before construction even starts.

Equity approximately 200,000, receivables about 250,000 but current assets of 3.3 million. How can I evaluate this now?

Positive equity of 200,000 is already good, since apparently the total assets are not excessively high based on the other figures.

He will probably still have land or started constructions in current assets that he needs to sell.

The question is whether he also has land/buildings in fixed assets.
This is usually the company premises or, for example, show houses.
If he has a value of 1 million plus here, you can be sure that this GmbH will not be liquidated so easily.

By the way, the annual financial statements are also included in the Bundesanzeiger.
Here you can see how much profit (positive net income) or loss (negative net income) the company has made in recent years.
If there has been profit in recent years, that is already positive.

Another indication of the situation of a company is how quickly it complies with its publication obligations in the Bundesanzeiger.
Basically, an annual financial statement must be published in the Bundesanzeiger within 12 months.
However, some companies are much slower here, and these are, at least in my experience, often companies that do not take their obligations as seriously as others. Of course, there can also be other reasons.

But it’s just about getting an overall impression of the counterpart.

You simply cannot compare the two. Your example is in the interest of the "public good", the BU rather less so.

That's not quite right. This is a private company. Of course, hospitals always talk first about the public good/optimal treatment etc. However, profitability is always the top priority.

And yes, I agree with you. The GU usually has the upper hand, since there is simply more money there. But, to quote the Ferengi as a former Trekkie: "A contract is a contract is a contract" :-)

I But, to quote the Ferengi as a former Trekkie: "A contract is a contract is a contract" :)

At this point, I can only laugh or rather cry. Apparently, you don't know my construction story. A contract is just paper. What do you want to do if the general contractor/subcontractor doesn't stick to it? Sue??? Then your house won't be finished in 5 years and your money will be with the lawyer and the court.

Thank you, I checked but I still find it hard to interpret because I don't know how much "a lot" is. The provider we chose has equity of about 200,000, receivables of around 250,000 but current assets of 3.3 million. How can I evaluate this now?

Not at all. You as a layperson, and even we (real estate financiers), cannot approximate the valuation of a developer/ general contractor based on a balance sheet. One year it goes up (inventory increases/unfinished buildings/deposits, etc.) and the next year things get sold off and everything looks completely different again. It just doesn’t work. Gut feeling, many years of experience as a developer, references, payment plan and customer interaction—these are things that give you a better sense. But not a balance sheet.

An exception is when the equity is shown at the bottom left of the balance sheet. By the way, I actually checked the Bundesanzeiger back then before signing to see if anything was immediately noticeable.

I checked ours again for fun. Equity is over a million - so he won’t go bankrupt easily anytime soon.

Regarding the topic: I go to the general contractor (GU) precisely to take the risks off the consumer and pay the GU’s margin for that. The rest is the entrepreneurial risk of the GU. I would also immediately approach the customer due to price increases and demand money. At least half will probably agree to that without further discussion. And all of that with just a few phone calls and letters. That’s well-invested time. You can’t make money any better.

Basically, it is also allowed for GUs to report losses for one year. It only becomes problematic for the tip of the iceberg, where simply poor management took place. The builders have an insolvent GU and the sh*t is hitting the fan.