ᐅ Remove services from the construction contract

Created on: 15 Dec 2015 09:19
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Bau.Joe
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Bau.Joe
15 Dec 2015 09:19
Hello,

I have a question. We signed a contract with a construction company. The offer was nearly turnkey. However, we are not satisfied with the heating system that was proposed. Therefore, we would now like to hire our own heating company.

Does anyone happen to know what needs to be considered in this situation? Is it allowed to simply remove certain services from the contract? What additional costs might we face? At the time of signing the contract, we discussed that we were not happy with the heating system and wanted a different one. However, the developer did not take any action and just delayed the process. The final selection and detailed planning are only scheduled for January. The company had not yet incurred any expenses for materials or other services.

Perhaps someone has had a similar experience.
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Müllerin
15 Dec 2015 09:27
No advice, just a question: why would someone sign a contract with terms they do not agree with?
Koempy15 Dec 2015 09:27
Usually, you can completely remove entire trades. However, you generally receive significantly less credit, so it often doesn’t end up being worthwhile. But this is something you need to discuss with your construction company.
Why did you sign the contract if you were not satisfied with the heating system?

The other issue is the warranty. The heating system plays a central role, and I’m not sure they will agree to this easily.
Musketier15 Dec 2015 09:55
First, the question: Developer or general contractor?

We had the uncertain items included as alternative positions in the contract (e.g., plot of land if the staircase is omitted… XXX€). Of course, for you, it’s probably too late for that. If the contract is with a general contractor, you will likely receive less credit because the contractor naturally won’t want to give up their profit. However, it should be possible. The warranty then runs through the heating installer’s company. Alternatively, the general contractor could tender the heating system, and you acquire it through them. In this setup, removing a trade later might even be more cost-effective overall.

If it is a developer contract, I can’t say much about that because it is notarized, and I don’t know how adjustable it is.
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HilfeHilfe
15 Dec 2015 11:14
Have you brought up the topic again? Is the developer unwilling to install a different heating system for an additional cost?

He will also hire a plumbing company for that trade. We were able to make changes to every trade that differed from the contract. Either it was cost-neutral or there was an extra charge. These included issues like a different wall color, different ceramic sanitary fittings, suspended ceilings, and so on.
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Bauexperte
15 Dec 2015 11:51
Hello,
Bau.Joe schrieb:

I have a question. We have signed a contract with a construction company. The offer was almost turnkey. However, we are not satisfied with the heating system offered. Therefore, we would like to hire our own heating company.
Does anyone happen to know what needs to be considered in this situation? Is it allowed to simply remove services from the contract? What additional costs might arise for us?
It is rarely effective to remove a mid-stage trade from the scope of work. Generally, general contractors work with a fixed group of subcontractors; they are well-coordinated and very familiar with the standards they use. It may well be that the current plumbing company has no experience with the heating system you prefer and will therefore resist the change.

You can remove the trade from the scope of work; no one can forbid you as the client. However, you should expect that the credit amount offered may not be satisfactory, and the plumbing company you subsequently hire will likely have to take on not only the heating but the entire plumbing scope, because your general contractor will only credit the whole trade. Additionally, the new plumber will probably be given a strict time frame in which to complete the work. I would even go so far as to recommend requesting a proper final inspection, the cost of which you will have to cover.
Bau.Joe schrieb:

The material selection and factory planning are scheduled for January. So the company has not yet incurred any expenses for materials or other services.
That is not correct. The plumbing company preferred by your general contractor has already allocated your project in their schedule; included materials in negotiations with their suppliers regarding purchasing conditions; planned their staff, etc.

Best regards, Bauexperte