ᐅ Final Inspection and Payment for a Prefabricated House – What Should Be Accepted?

Created on: 4 Dec 2018 13:16
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Skyfire
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Skyfire
4 Dec 2018 13:16
Hello everyone,

We are being pressured to accept the building despite some trades not yet being completed.

The handover is supposed to take place immediately after the screed is installed, basically while it is still in the heating phase.

However, the tiling, exterior plaster, and sanitary fixtures are still outstanding.

At the same time, since our house is supposedly "ready for handover" (the aforementioned trades, as well as the underfloor heating and screed, are still missing as of today), we have received the last progress payment invoice, and the final invoice is supposed to be issued at the handover.

According to the construction manager, a retention (for example, $1,000 for the tiling) is to be agreed upon in the handover protocol for the unfinished trades. In any case, this is significantly less than the cost of the work to us.

Do I have to accept this? I do not want to make an advance payment, and certainly not accept something that is only partly completed.

What can I possibly rely on?

Thanks for your help.
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Mottenhausen
4 Dec 2018 13:33
Simply put:

your contract governs this! It states when the final inspection can take place, when invoices can be issued, and so on.

I assume your contract includes terms like "completion of essential components," "final acceptance cannot be denied due to non-essential defects," and similar conditions.
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Silent010
4 Dec 2018 13:41
Skyfire schrieb:
We are being pressured to accept the construction even though some trades are not yet finished.

I don’t need to read any further... Acceptance should only happen after completion (partial acceptance of individual trades excluded).

Please don’t agree to anything else.

Why would anyone accept a house before it is completed?
Mottenhausen schrieb:
I suspect your contract says something like “completion of essential components,” “final acceptance cannot be refused due to non-essential defects,” and so on.

I have never built with a developer/general contractor/building contractor/prefabricated house manufacturer, but it is clear that I can only accept everything once it is completed and there is no more need for clarification regarding that trade.

For example, if the windows are installed, then I can inspect and accept the windows and their installation.
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Skyfire
4 Dec 2018 20:30
The contract states:

1. Upon completion of the house, a formal handover will take place. The applicable legal regulations shall otherwise apply.

2. Partial handovers remain reserved.
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nordanney
4 Dec 2018 20:39
Skyfire schrieb:
The contract states:

1. After completion of the house, a formal acceptance takes place. The statutory regulations apply otherwise.

2. Partial acceptances remain reserved.
Well then, follow what is stated in the contract. Final acceptance only occurs when the entire house is completed. Whether you accept partial trades is up to you.
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Mottenhausen
4 Dec 2018 20:42
Then the case is clear. In my view, "after completion" leaves no room for interpretation. So don’t let yourself get frustrated. Politely refer to the clause in the contract and ask why the agreement in the contract is suddenly being violated now?