ᐅ Completion Date in a General Contractor Agreement – Wording Guide

goalkeeper schrieb:

He or his subcontractors therefore cannot afford to take their time during the construction period.

But what if a prolonged period of bad weather occurs... Is that time added to the promised deadline? Just a thought; I’m not sure.

ypg schrieb:

Personally, I would focus more on the term "ready for occupancy."
Because what does that mean in reverse? Occupying the house means the silent acceptance of the building. Without any official inspection report or list of defects.

No, no... the topic of "acceptance" is regulated in a separate section. Additionally, it is also covered in the new construction contract law from 2018, which I highly recommend to everyone here who gives advice on general contractor contracts.

Unfortunately, many outdated and now changed sections are still in circulation, which many people probably are not yet familiar with.

ypg schrieb:

But then just wait for a severe period of bad weather... that time will be added to the promised deadline, right??? Just a thought, I don’t know.

That’s true – he can definitely rely on that, especially since we plan to do the shell construction in autumn/winter.

goalkeeper schrieb:

Your argument doesn’t hold—since the new construction contract law, a duration or guaranteed construction period must be included.

In our main contract, it states that it will be ready for occupancy 10 months after the start of construction and fully completed after 12 months. The start of construction is one month after the building permit / planning permission is granted. Therefore, neither the contractor nor his subcontractors can take their time during the construction period.

The only way to delay is to postpone applying for the building permit / planning permission. But once that is obtained, they have to speed up.

Is there no clause for bad weather delays? I repeat myself because, in our building area, I see more problematic construction sites than good ones. If there are issues or delays, the general contractor won’t just double the workforce to meet your deadline—instead, they’ll prefer to pay you a minor delay penalty! Was this regulated in your contract? What does it say if you can’t move in after 12 months? Nothing?

goalkeeper schrieb:

In our main contract, it states that it will be ready for occupancy 10 months after the start of construction and fully completed after 12 months. The start of construction is one month after the building permit / planning permission is granted. Therefore, neither the contractor nor his subcontractors can take their time during the construction period.

To refer again to my neighbor’s 14-month construction period, who is still not finished…

I know the contractor’s contract because we also obtained a quote. It stated a 9-month construction period starting from the date the building permit / planning permission was received, plus allowances for bad weather, with delay penalties starting after 10 months.

My neighbors received their building permit / planning permission in January 2018, started excavation work in March 2018, and the move-in date is still pending.

That’s why I say, if they’re not able to speed things up, they won’t. The contract won’t help much in that case.

But let’s not assume the worst. Everything could still go smoothly. However, I suggest you don’t put too much trust in the contract, especially regarding the completion date.

Zaba12 schrieb:

No bad weather clause included? I’m repeating myself because I see more bad than good construction sites in our area. If there are problems during construction and/or delays occur, the general contractor won’t double the workforce to meet your deadline; instead, they’d rather pay you a minor delay penalty! Was this also addressed in your contract? What does it say about moving in after 12 months if it’s not possible? Nothing?

Then the new building regulations apply, and the contractor becomes liable for damages – the exact amount of damages must then be determined, if necessary through legal proceedings. In such cases, they may have to pay, for example, the standby interest and our rent. They will not agree to any additionally agreed contractual penalty.

goalkeeper schrieb:

Your argument doesn’t hold – since the new construction contract law, a duration or guaranteed construction period must be specified.

In our general contractor agreement, it states that the property will be ready for occupancy 10 months after the start of construction and completely finished after 12 months. Construction starts one month after the building permit / planning permission is granted. Therefore, neither he nor his subcontractors can afford delays during the construction period.

He can only delay the building permit by submitting the application later. But once he has it, he must speed up the process.

goalkeeper schrieb:

Then the new construction law applies, and he will be liable for damages – the exact amount of damages has to be determined, if necessary in court. For example, he would have to pay interest on the loan availability and our rent.
He will not agree to an additional contractual penalty.

I already said, let go of the deadline and accept that you will get compensation for delays, even if it won’t cover the child construction subsidy. That’s all I wanted to say. It’s just unfortunate if he finishes in January 2021; the little rent and loan interest won’t matter then. For two children, for example, you’re immediately out 40,000€.

EDIT:
Here’s another thought. Since I haven’t done the tax return for 2018 yet this year, only the tax returns for 2017 and 2016 can apply for the child construction subsidy! In other words, if you miss the tax return deadline, you can only submit the old one, since you don’t have the new one yet. Or am I wrong?

EDIT 2:
It says on the child construction subsidy page: applications 2019, tax returns 2017 and 2016. I’m going again...