ᐅ Construction Planning and Building Process – Is a Preliminary Agreement with the Builder Necessary?
Created on: 11 Oct 2018 13:41
B
Bauhamster1
Hello everyone,
I would really appreciate answers to my questions and thank you in advance.
Current situation: Plot of land available (building plot with development plan)
Desired situation: Construction of a single-family house with a basement on the plot, including DEKRA construction supervision (inspection and approval of individual trades)
Below are the rough steps of building a house as I imagine them. Please feel free to add or correct the order.
1. Preliminary discussion with the preferred prefab house company
2. Inspection of the building structure and review of experience reports about the prefab house company
3. Review of the prefab house company’s financial situation
4. Initial selection of the offered equipment package for the interior & factory visit of the production
5. Decision made on the prefab house company
6. Architectural planning including soil testing and structural engineering analysis
7. Preparation of building plans, energy demand calculation, cross-section planning, living space calculation
8. Submission of building plans to the local authority (estimated approval time up to 3 months)
9. Loan application must be submitted and approved
10. After approval of the plans and loan application (9 months interest-free commitment period) signing the contract with the prefab house company (contract will be carefully reviewed regarding scope and completeness of trades)
11. Start of production by the prefab house company
12. Excavation, groundwork, and installation of water supply & drainage, internet, gas line
13. Basement construction begins, completed basement including insulation
14. Basement completed
15. After completion of house production, delivery, and assembly on basement slab
16. Shell structure erected
17. Roof frame installed
18. Interior finishing starts (electrical work, insulation, plastering, etc.)
19. House finished, final acceptance inspection
20. Move-in and completion of driveway, garden, etc.
Questions:
Regarding point 2: Is some kind of preliminary contract with the prefab house company already necessary here? The architect is unlikely to carry out their work without financial security.
Regarding point 14: Is it disadvantageous if the basement is completed and the house assembly takes place a week later?
- By when do I need to have secured financing from the bank at the latest? The 9 months from point 7 seem very tight to me! (Production of the house walls, etc., already takes several months.)
- Is it correct that payments to the prefab house company are only made after approval or acceptance by the DEKRA construction expert I commissioned?
I would really appreciate answers to my questions and thank you in advance.
Current situation: Plot of land available (building plot with development plan)
Desired situation: Construction of a single-family house with a basement on the plot, including DEKRA construction supervision (inspection and approval of individual trades)
Below are the rough steps of building a house as I imagine them. Please feel free to add or correct the order.
1. Preliminary discussion with the preferred prefab house company
2. Inspection of the building structure and review of experience reports about the prefab house company
3. Review of the prefab house company’s financial situation
4. Initial selection of the offered equipment package for the interior & factory visit of the production
5. Decision made on the prefab house company
6. Architectural planning including soil testing and structural engineering analysis
7. Preparation of building plans, energy demand calculation, cross-section planning, living space calculation
8. Submission of building plans to the local authority (estimated approval time up to 3 months)
9. Loan application must be submitted and approved
10. After approval of the plans and loan application (9 months interest-free commitment period) signing the contract with the prefab house company (contract will be carefully reviewed regarding scope and completeness of trades)
11. Start of production by the prefab house company
12. Excavation, groundwork, and installation of water supply & drainage, internet, gas line
13. Basement construction begins, completed basement including insulation
14. Basement completed
15. After completion of house production, delivery, and assembly on basement slab
16. Shell structure erected
17. Roof frame installed
18. Interior finishing starts (electrical work, insulation, plastering, etc.)
19. House finished, final acceptance inspection
20. Move-in and completion of driveway, garden, etc.
Questions:
Regarding point 2: Is some kind of preliminary contract with the prefab house company already necessary here? The architect is unlikely to carry out their work without financial security.
Regarding point 14: Is it disadvantageous if the basement is completed and the house assembly takes place a week later?
- By when do I need to have secured financing from the bank at the latest? The 9 months from point 7 seem very tight to me! (Production of the house walls, etc., already takes several months.)
- Is it correct that payments to the prefab house company are only made after approval or acceptance by the DEKRA construction expert I commissioned?
M
Mottenhausen11 Oct 2018 15:57With Streif Haus, we were not given the option; it really seems to depend on the salesperson. However, I do not have much more experience with other companies.
With Fingerhaus and Luxhaus, we could have done the same. The scope of work was included with the offer or handed over during the initial meeting. Contracts that were signed without the scope of work being provided beforehand are no longer considered valid.
Although not a prefab house, Viebrockhaus includes the scope of work directly in the catalog, and their model home exhibitions are open to the public with price tags in the model home park. You can simply walk through and see how much you need to budget.
In the end, we chose a smaller regional builder and select finishes directly with the individual tradespeople and suppliers. At the moment, it looks like the garden could turn out much better than expected (or maybe we will go with smart home technology after all).
Although not a prefab house, Viebrockhaus includes the scope of work directly in the catalog, and their model home exhibitions are open to the public with price tags in the model home park. You can simply walk through and see how much you need to budget.
In the end, we chose a smaller regional builder and select finishes directly with the individual tradespeople and suppliers. At the moment, it looks like the garden could turn out much better than expected (or maybe we will go with smart home technology after all).
Bauhamster111 Oct 2018 16:27First of all, thank you for your quick and extensive information.
We have already noticed that there are significant differences among prefabricated house companies. These differences mainly concern the building structure, insulation systems, quality of consultation, and the services provided before signing the contract, to name just a few.
As an alternative, traditional construction through local firms with an architect is still an option. Of course, in this case, it is generally felt that planning uncertainty and the risk of possible poor workmanship in certain trades are higher.
Would it be possible for someone with experience to outline the main steps involved in “traditional construction” without a prefabricated house company? Who usually provides the cost estimate for the construction project in this case? How much lead time should ideally be planned before starting the first step? (Construction companies are currently extremely busy, unfortunately.)
And one last question: If I pay in advance for architectural services or a soil investigation, can these costs still be included in the construction loan financing with the bank?
Greetings from the Munich metropolitan area
We have already noticed that there are significant differences among prefabricated house companies. These differences mainly concern the building structure, insulation systems, quality of consultation, and the services provided before signing the contract, to name just a few.
As an alternative, traditional construction through local firms with an architect is still an option. Of course, in this case, it is generally felt that planning uncertainty and the risk of possible poor workmanship in certain trades are higher.
Would it be possible for someone with experience to outline the main steps involved in “traditional construction” without a prefabricated house company? Who usually provides the cost estimate for the construction project in this case? How much lead time should ideally be planned before starting the first step? (Construction companies are currently extremely busy, unfortunately.)
And one last question: If I pay in advance for architectural services or a soil investigation, can these costs still be included in the construction loan financing with the bank?
Greetings from the Munich metropolitan area
Bauhamster schrieb:
As an alternative, traditional construction through local companies with an architect is always an option. And of course, there is the general contractor (GC) or main contractor, who builds using the traditional masonry method. The term "prefabricated house" refers to homes made from preassembled components that are simply put together on site (usually timber frame construction, but there are also masonry systems).
In the past, our bank recognized paid invoices as equity, which I believe is common practice.
Bauhamster schrieb:
And one last question. If I pay in advance for architectural services or a ground survey, can these costs still be included in the construction financing with the bank? Yes
Bauhamster schrieb:
Would it be possible for someone with experience to outline the main steps involved in “traditional building” without using a prefab house company? In short:
You commission the architect. They first sketch a rough design with you of how the house should look and estimate the approximate costs.
If you agree, they then prepare a detailed plan, calculate the costs more precisely, and submit the building permit / planning permission application. After that, they create the execution plans and prepare the tender documents for the individual trades.
Then you receive quotes. At this point, you will have a fairly accurate idea of the overall costs.
You can accept the quotes, and the trades can start construction, ideally under the supervision of the architect.
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