What does "due after completion without deduction" mean?

Hello,

I am currently dealing with the various construction service descriptions. One repeatedly comes across the phrase "due after completion." This raises the question for me: when is a trade or a service considered completed? Who exactly defines this point in time?

It is important, for example, not the point when the building application is fully formulated, but when the building authority has accepted the building application.

I see various actors on the construction site:
- The construction company
- The subcontractors (bricklayers, etc.)
- DEKRA (if included in the construction service description)
- The client

What about services such as structural engineering, surveying, architectural services, etc.? I cannot really assess the performance of the structural engineer. How should I then estimate whether the service has been completed?

My question is quite general. I still hope that someone can help me!

Best regards
Jerolin

PS: Building is killing me! And I haven't even signed a contract yet!

Most of the time it is easy to see when something is finished. With us, it was definitely like that. In the payment plan it said, for example, "after submission of the documents for the building application." The invoice then came about a week after the submission of the documents. It continues like this: "Completion of the foundation slab, completion of the roof truss." You can then easily see if it is finished or not.

It's not quite that simple, because work can appear to be finished while any remaining tasks are still undone, or the work may still have defects. With a reputable company, there are hardly any problems, but a less reputable one can indeed take advantage here. Above all, you have to make sure that the payment terms are not too front-loaded, i.e., that not too much money flows to the construction partner at the beginning. Regards Wabe

Hello,
with my cousin it was like this:
1. Payment after signing the contract or after setting up the construction account. Then architect meeting, preparing the tender, submitting the building application, etc.
2. Payment then after the tender and award. Now introduction of the site manager, site setup and organization/planning of the craftsmen.
3. Payment now after completion and invoicing of the respective craftsmen, checking the service/invoice by the site manager and my cousin. Transfer only when EVERYTHING was okay and then only 95% of the respective invoice. The last 5% were due only after the final acceptance.
In addition, the financing advice helped with managing the construction account.

The technical details and arrangements were made in the architect meeting, or then with the respective specialists. Very flexible!
I also think that not every house building consultant can know everything.

He was very satisfied. He always had good contacts and top service. Especially because he was very involved and genuine transparency was shown. That was very helpful. Through this, he always kept an overview and insight, and problems were dealt with quickly and satisfactorily.
Especially if you are not familiar with the subject matter (how could you be?), such a company is worth its weight in gold!!
I plan to build in about 3 years and am glad to benefit from my cousin’s experiences. I also find this forum (I’m new here!) top!
So far, I have only compared 2 companies (prefabricated and solid construction).
By the way, my cousin built solidly and I think I am also tending in that direction.
The system of the company my cousin built with is really brilliant, in my opinion. So far, I have not found any other provider with a similar system.
I hope to be luckier here!

Regards, kiz

Hello,

so in general:

As soon as a service, as described, according to the [Leistungsverzeichnis], or other, is completed, an invoice or progress payment invoice will be issued by the contractor, which you then have to pay according to the payment agreement.

It is best to agree contractually that payment will be made after acceptance has taken place and it does not show any defects.

Regards

Hello,

I am currently busy with the various construction service descriptions. You keep reading the phrase "due after completion." This raises the question for me, when is a trade or a service considered completed? Who exactly defines this point in time? It is important, for example, not the moment when the building application is fully formulated, but when the building authority has accepted the application.

Wrong - if your main contractor/general contractor provides for the first payment "after submission of the building application," the first installment is due after completion of the building application. And if my assessment is correct, the second advance payment will then be "after granting of the building permit." This is common in the industry because the service has been provided.

What about services like structural engineering, surveying, architectural services, etc.? I can't even assess the service of the structural engineer. How am I supposed to judge whether the service has been completed?

Structural engineering with thermal insulation verification, architecture, and – if contractually agreed – soil survey are usually paid with the first two advance payments.

Surveying, except in the case of property developers, is a personal service, meaning you have to commission a surveying engineer you trust to survey your property at your own expense and cost. Part of the incidental building costs amounting to EUR 35,000.

If you do not feel confident about this project – and that’s how it reads right now – you should get external help in good time. Find someone through the common platforms who checks the construction documents for possible pitfalls and a building expert who accompanies your construction project. Overall additional costs of a few thousand euros but well-invested money!

:And I haven’t even signed a contract yet!

THAT is also good, you still have far too little information to sign a contract with the inherent risk of financial loss.

Kind regards