I found various opinions on this and would like to know how this issue was handled contractually or possibly renegotiated in your cases.
According to our construction contract, we always pay first, and then the next phase of construction is completed. So, our payments are always made in advance.
Based on the assessment of a friend with industry experience, this is not uncommon, but he would try to renegotiate it. An invoice that has already been paid is no longer a "lever" for negotiation.
How was it handled in your experience?
According to our construction contract, we always pay first, and then the next phase of construction is completed. So, our payments are always made in advance.
Based on the assessment of a friend with industry experience, this is not uncommon, but he would try to renegotiate it. An invoice that has already been paid is no longer a "lever" for negotiation.
How was it handled in your experience?
Final schrieb:
I know of a prefab house provider where you only pay everything upon handing over the keys (starts with S and is somehow related to Sweden and Norway).
But that might be like looking for a needle in a haystack ... and in my opinion, the needle can just as well stay there, because, put differently, this ultimately means that you have no security interest or leverage for the otherwise typical final 5% payment.
Payment only upon moving in basically means that you don’t move in without paying 100%....
Whether that is really wise... And whether something like that is legally effective... ???
The regulations of the real estate agent and developer ordinance for the developer business clearly speak against this, at least.
Bauexperte schrieb:
When I see payment schedules like these, I know that the decision in favor of such a provider was made solely based on the price at the bottom right. That has never been and will never be good advice!
Regards, BauexperteI need to ask for clarification: should I understand your response to mean that you think we chose this provider because they were the cheapest?
B
Bauexperte1 Aug 2016 20:26@Mizit
It is quite likely; such payment plans are found almost exclusively with supposedly low-cost providers.
Bauexperte
It is quite likely; such payment plans are found almost exclusively with supposedly low-cost providers.
Bauexperte
Either way, this exchange has been really helpful. Nothing has been signed yet, and everything is still open for us. As laypeople, we hadn’t really considered some questions about the payment schedule until we had it in front of us. I’m going to double-check the calculations shortly—not to make any claims here—but I just can’t work properly with numbers in the hundreds. This would definitely be a point for us to negotiate. I don’t seriously believe we need to worry that the provider will go bankrupt. It’s a relatively large company that has been established on the market for several decades. Everything seems transparent, costs for individual items are provided immediately upon request, and we haven’t had any really negative experiences with them.
Still, you never really know; presumably, no one builds a house with a company that seems bankrupt, and those affected are usually caught completely off guard.
The argument that hardly any money would be left in the plan to have the house finished by a third party in the worst-case scenario seems very valid to me. A rather large company, which appears solid based on our impression, should be able to accommodate the customer in that regard.
Still, you never really know; presumably, no one builds a house with a company that seems bankrupt, and those affected are usually caught completely off guard.
The argument that hardly any money would be left in the plan to have the house finished by a third party in the worst-case scenario seems very valid to me. A rather large company, which appears solid based on our impression, should be able to accommodate the customer in that regard.
B
Bauexperte1 Aug 2016 21:41Mizit schrieb:
(Is it allowed to mention it now or not?) especially "Of course, you may mention it here. However, if a discussion about the supplier arises, I will have to move the thread. Nothing more will happen. Bauexperte