Unpredictability of construction costs - Will the project fail because of it?

So I would probably either try to come to an agreement with the current general contractor. That might be the most cost-effective solution for the current house design. But only if it doesn't lead you to financial ruin.

Otherwise, I would plan completely new with one less floor and pay the standby interest.

In the last conversation, I already had the feeling that he was aiming for an agreement. But well, I have already been taught better about that. Otherwise, we still have one or two items that we can cut and use as a buffer. That would amount to a total of €60,000 if we also leave out the garage.

In the last conversation, I already had the feeling that he was aiming for an agreement. But well, I have already been proven wrong about that. Otherwise, we still have one or two positions that we could cut and use as a buffer. That would be a total of €60,000 if we also leave out the garage.

I think that would be my approach then.
Cut unnecessary things, leave out the garage for now as well. A €60k buffer is a lot, that should be enough!
But there has to be enough trust in the old general contractor.
€2,500/sqm is definitely very cheap at the moment, you really can’t accuse him of ripping you off.

I think that would be my way then. Cutting unnecessary things, leaving out the garage for now as well. A 60k buffer is a lot, that should be enough! But there has to be enough trust in the old general contractor. 2500€/sqm is definitely very cheap at the moment, you really can’t accuse him of ripping you off.

That’s exactly my thought. Old general contractor with price increases or new general contractor who already has a higher price from the start + further increases during the year. The price for the shell/carpenter/roof would also be fixed, would be contractually agreed that way. Further increases would then “only” affect the remaining trades.

I would at least get a second offer and then compare the construction service descriptions accordingly... Or have someone knowledgeable evaluate the offer with the construction service description to see if there are any pitfalls...

Edit:

What increases come with the new general contractor?

And at least for me, the trust relationship would be completely destroyed after the statement either you pay the additional costs I say or I delay the construction until doomsday...

I would at least get a second offer and then compare the construction service descriptions accordingly... Or have someone knowledgeable evaluate the offer with the construction service description to see if there are any pitfalls... Edit: What increases with the new main contractor? And at least for me, the trust relationship would be completely destroyed after the statement either you pay the extra costs I say or I delay the construction until the end of time...

I see it similarly. I would probably only add an addendum regarding the start of construction, handover at time x, contractual penalties, and an addition about the exact definition of "force majeure" excluding Corona and Ukraine. Imagine there is a notice of defects, withholding payments, and he starves someone out. That is exactly what he threatened.

I would at least get a second offer and then compare the scope of work description accordingly... Or have someone knowledgeable evaluate the offer with the scope of work description to see if there are any pitfalls...



Edit:

What increases are there with the new general contractor?

And at least for me, the trust relationship would be completely destroyed after the statement either you pay the additional costs I say or I will delay the construction until doomsday...

Definitely! I will ask around this week and also speak again with our general contractor. By increases I mean that the material costs in the individual trades increase again during the construction.