Work contract with general contractor - questions about the offer

At what point can one

They say the completion guarantee is also regulated in the Building Code. However, it is read that it should also be made part of the contract and must be carefully reviewed beforehand. Does a general contractor basically have a permanent exemption guarantee that can already be inspected now?

Does anyone else have a contribution on the topic of the completion guarantee? The general contractor says that the Building Code provides for this anyway; it is sometimes recommended on the internet that this must be explicitly included in the contract and that the content of the guarantee should be carefully reviewed beforehand.

In my opinion, a completion guarantee is not necessary if 5% of the construction sum is retained (which then becomes due upon acceptance). We have handled it that way, with the prior agreement of the developer.

What about a warranty guarantee?

In my opinion, you don't need a completion bond if you withhold 5% of the construction sum (which then becomes due upon acceptance). We handled it that way, with prior agreement from the developer.

What about a warranty bond?

I just inquired by email about the warranty bond 2 minutes ago. I suspect it is not included by default and must be arranged at one’s own expense.

I also wanted a higher retention. The construction advisor had recommended 3.5% instead of 2%. But the general contractor argued precisely with the completion bond, which is legally required, that with that I would virtually already have 7% instead of 2% secured.

I just emailed him that I would like to receive the completion bond and that there should be a reference to it in the contract for work. Nevertheless, the 3.5% final installment should still be set.

I also wanted a higher withholding. The construction advisor had recommended 3.5% instead of 2%.

The withholding is something different from the amount of the last installment, is that clear?

From your general contractor, I do not get the impression that they would fail before completion or warranty. Which on the one hand means they will not be urgently needed there - and on the other hand means that they should probably be obtainable at relatively favorable conditions.

In the event of insolvency, the contractor's ability to provide their services would indeed be weakened - but that by no means means that one would already be entitled to substitute performances / awarding contracts to other contractors. And the risk of payment without consideration is actually better secured by an appropriate payment plan.

One would also have to dispute a contractual penalty for delay even with guarantees.

Depending on one's personal need for security, I would frankly say: I would rather plant the extra cost for the guarantees in the front yard.

Regarding the 5% retention according to Building Code 632a para. 3. Does anyone know for sure whether: a) the 5% can be withheld without a contractual agreement (pretty sure yes) b) the contractor should at least be informed about the retention (probably not mandatory but advisable) c) the 5% can simply be withheld from a later installment, e.g. installment 2 (I believe so)