Hello again,
here is the situation: The construction company has informed us that there will likely be a two-month delay (move-in ready beginning of February instead of the planned end of November) and admits that it is their fault (they started too late overall). They want to compensate us for the two months by covering our ongoing apartment rent as well as the resulting construction loan interest during this period. Condition: If we carry out any work on the house ourselves during the delay period (i.e., December/January), such as painting preparation while the screed is drying or laying vinyl after the screed has dried, they will reduce the compensation by four weeks.
The company justifies this as a form of protection in case we accidentally cause any damage through our work, arguing that the house remains their property more or less until full completion.
Question: Is this common practice? Is it regulated by law? So far, these arrangements have only been communicated verbally; we have requested a written document and are still waiting, as the manager is apparently on vacation... [To clarify beforehand: No contractual penalty was agreed upon.]
here is the situation: The construction company has informed us that there will likely be a two-month delay (move-in ready beginning of February instead of the planned end of November) and admits that it is their fault (they started too late overall). They want to compensate us for the two months by covering our ongoing apartment rent as well as the resulting construction loan interest during this period. Condition: If we carry out any work on the house ourselves during the delay period (i.e., December/January), such as painting preparation while the screed is drying or laying vinyl after the screed has dried, they will reduce the compensation by four weeks.
The company justifies this as a form of protection in case we accidentally cause any damage through our work, arguing that the house remains their property more or less until full completion.
Question: Is this common practice? Is it regulated by law? So far, these arrangements have only been communicated verbally; we have requested a written document and are still waiting, as the manager is apparently on vacation... [To clarify beforehand: No contractual penalty was agreed upon.]
B
Bauexperte17 Oct 2016 15:59andimann schrieb:
Our contract explicitly states that I am allowed to enter the construction site at any time. Who in their right mind would lock themselves out of their own property? Actually, quite a few.
andimann schrieb:
I have no authority to give instructions to the tradespeople and could only remove them with considerable effort. Exactly, that authority lies only with the person who holds the house rights.
andimann schrieb:
And 50 € / working day would be 1000 or 1200 € per month. That’s not a penalty clause, not even compensation for rent or hotel costs!
That’s more like a bad joke!
It might even be financially attractive for the general contractor to leave a site idle and work elsewhere instead. Usually, that amount is sufficient to cover ongoing rent; or even temporary accommodation like a holiday flat.
If you think suppliers enjoy leaving a construction site idle, you’re being naive.
I think it’s good that it’s pointed out here that the statement "You didn’t agree on a penalty clause, so tough luck" is not correct. If the production completion date is part of the contract, the contractor is liable for damages if the date is not met due to their fault. This does not need to be explicitly agreed upon, but arises from the basic principles of a contract for work. In this respect, a clause on fixed contractual penalties could be seen merely as a simplification, since no evidence of the actual damage incurred needs to be provided. On the other hand, it can also serve as a limitation of liability for the contractor, because fixed amounts and caps can be established.
I assume the contractor knows that they are liable for damages and now simply wants to ensure they can carry out their schedule without hindrance, because each additional day of delay costs more money. Homeowners who interfere uninvited might also get in the way, and if then there is a dispute about who caused which delay, it becomes pointless.
I assume the contractor knows that they are liable for damages and now simply wants to ensure they can carry out their schedule without hindrance, because each additional day of delay costs more money. Homeowners who interfere uninvited might also get in the way, and if then there is a dispute about who caused which delay, it becomes pointless.
B
Bieber081517 Oct 2016 16:25LuziEva schrieb:
We’re just considering which approach makes more sense: accepting full compensation and "doing nothing," or accepting less compensation and "taking action." Only you can answer that! What is more important: finishing quickly or the money? Probably the deadline...
I didn’t fully understand the argument about owner-contributed work. Was it decided from the start that you would do some of the work yourselves, and if so, which tasks? Was the owner work planned during the scheduled construction period (until the end of November) or intended to take place after completion and handover?
Something to consider:
- Don’t set the compensation period to just two months now, but keep it open until actual completion. You’re basically still on the (new) schedule; the delay might still come.
Otherwise, my modest experience matches the building expert’s advice: 50 euros per working day, capped at 5% of the contract amount.
Bieber0815 schrieb:
That, however, only you can answer! What’s more important: the quick completion or the money? Probably the deadline... Actually, not necessarily the deadline, no... Of course, we have to answer that ourselves in the end, but you want to hear other opinions in a forum!
Bieber0815 schrieb:
I didn’t fully understand the argument regarding self-performed work. Was it decided from the start that you would do any self-performed work, and if so, what kind? Was self-performed work planned during the scheduled construction period (until the end of November)? Or was it meant to be done after completion and final inspection? No, self-performed work was never planned. It’s just generally mentioned in the scope of work. We only found out through initial planning talks with our painter a few weeks ago that he would like to start before the tiles are in, if possible.
Bieber0815 schrieb:
Otherwise, my modest experience aligns with Bauexperte’s statement: 50 euros per working day, capped at 5% of the contract sum. Hmm, if that’s true, we’re obviously not doing ourselves any favors with the company... It’s probably down to our negotiation skills to get more out of them than their offer suggests... :-/
B
Bieber081517 Oct 2016 16:55So, you want to do the painting yourselves (or hire a painter independently from the general contractor), but the tiling is the responsibility of the general contractor? From my own experience: Make sure the painting work is completed before grouting the tiles. Otherwise, you’ll get dirt in the grout later. Alternatively, you can tape off the areas yourself.
Basically, you need to clarify how your own work fits into the overall construction schedule.
Basically, you need to clarify how your own work fits into the overall construction schedule.
Similar topics