ᐅ Price Increase Due to Market Conditions

Created on: 16 Sep 2019 20:46
D
Donludo
Hello,

We received an offer from a builder in March. Since then, we have been in ongoing discussions regarding changes to the building specifications, conducting soil surveys, etc.
Now the soil report is available, and the builder is not only increasing the price for the basement but also raising the total price of the house by nearly 10% due to the market situation! That seems quite high to us.
First offer in March, latest revision in July, and now it is mid-September...

What do you think? Counteroffer?
M
Michlhausbauaa
18 Sep 2019 12:58
pffreestyler schrieb:

No, just under 6%, but I was already talking about 5–8%, and going from 8% to 10% isn’t a big jump. Anyway, there’s nothing you can do about it. It won’t get better in the short term. Unfortunately

By “net increase for the mason,” I mean what they actually earn more/effective wage increase.
M
Michlhausbauaa
18 Sep 2019 12:59
And there, he also does not earn 5-8 percent more in wages than the previous year. The “extra” all goes to the company...
P
pffreestyler
18 Sep 2019 13:06
No further news, there was a significant wage increase in the construction sector last May.
11ant18 Sep 2019 13:13
Michlhausbauaa schrieb:

The "extra" all goes to the company...
Even so: profit margin ensures the equity ratio, the equity ratio secures jobs and the continuity of the company – and the latter is ultimately relevant for warranties and therefore in the customer's best interest.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
Michlhausbauaa
18 Sep 2019 13:16
I have no doubt about that, but I think it is generally a problem with people nowadays. Everyone complains or grumbles about the smallest little things. Crazy world!
H
HilfeHilfe
18 Sep 2019 16:57
Just tell the general contractor it's okay to add a 3% surcharge and sign the contract. I bet the original poster won't make that offer. That's just how it is. The "thrift is cool" mentality. But at some point, you have to make a decision.