What is the value of a fixed price that is not guaranteed?

  • Erstellt am 2021-09-17 10:27:30

Lois L.

2021-09-17 10:27:30
  • #1
Hello,

how should it be assessed if a fixed price applies under the condition that "due to Corona no direct or indirect delays of the start of construction" occur - and the start of construction is indeed specified in the contract for work, but only as "planned"?

Thank you in advance for all experience reports and expert opinions on this.
 

konibar

2021-09-17 10:57:48
  • #2
what does the fine print in the contract appendix say about that?
 

Lois L.

2021-09-17 11:32:38
  • #3


What do you mean by the fine print?

There are several sections:

"Due to the Corona crisis, performance disruptions, especially delays during the construction period, cannot be ruled out. Neither the client nor the contractor can estimate the direct (e.g., illness-related absence of the contractor's and/or their subcontractors' and suppliers' workforce, absence of workers who care for and/or look after relatives of any generation, quarantine measures, etc.) or indirect consequences (restrictions on travel and/or freedom of movement, curfews, border closures, etc.) and subsequent effects of the Corona crisis at the time the contract is concluded.
The parties therefore agree that any direct and/or indirect consequence of the Corona crisis that directly or indirectly affects the performance capability of one of the contracting parties shall not be considered a performance disruption - especially not a delay.
Any circumstances of this kind extend the construction period and are not considered to be the fault of the client or contractor."

"Due to ongoing supply bottlenecks with various building materials, the following amendment to §3 paragraph 2 sentences 2 - 4 of the contract for work is agreed:
1. The agreed fixed price remains unchanged for contracts concluded by ----- and a construction start no later than -----.
2. If the construction start occurs, with the same contract conclusion, in the period ------, the offer price (= base price of the house, plus additional services, minus reductions) will increase by a flat rate of 1%.
3. If the construction start occurs, with the same contract conclusion, from ------, the offer price (= base price of the house, plus additional services, minus reductions) will increase by a flat rate of 2%.
4. If the construction starts later, a price adjustment will be made as agreed in the contract for work."
 

11ant

2021-09-17 12:24:55
  • #4

This does not cover that the same type of circumstances can already delay the start of constructionbeginn. Furthermore, a corresponding extension of the price guarantee is missing.

However: where do you think the contractor should get the money from (print it himself?), if he simply assumes all inflation risks? - he will have to factor that in beforehand!
The more fixed you want your price to be guaranteed, the more price increase risk he has to calculate into it. Your price will therefore inevitably be higher the longer and stricter you want it guaranteed.
 

Tom1978

2021-09-17 12:37:43
  • #5
In our contract for work, an extension of the construction period due to Corona is explicitly excluded. The BU stated very clearly that the industry was one of the few that also worked normally during the Corona crisis.
 

Tolentino

2021-09-17 13:26:53
  • #6
Warning amateur opinion! If the contract is not signed on both sides, I would say you can use the page with the fixed price guarantee as scratch paper. The wording with direct and indirect is basically a wildcard that releases everything. On the other hand, he probably has to prove this connection as well. However, enforcing the fixed price is a different matter. You want to have your house finished later in case of doubt, but he only continues building if you accept the price increase for XY (e.g. roof structure). Do you want to argue for 4 years until it is determined that he has to accept the fixed price?
 

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