ᐅ Builder of Solid Construction Homes or Architect During the Coronavirus Pandemic

Created on: 29 Mar 2020 22:08

Hello everyone,

We are about to start building a house (rural area, Schleswig-Holstein, 60 km (37 miles) from Hamburg) and are uncertain about how to proceed due to the coronavirus crisis:

Option 1: Turnkey with a solid construction company Massivhausanbieter Viebrockhaus, because – as we assume –:
- more financially stable/crisis-proof as a large company, lower risk of insolvency
- own sample display centers with likely on-site material storage
- own trades/construction crews (no cross-border workers who currently cannot cross the border)
- relatively short construction period

Option 2: local architect/construction manager who uses local tradespeople, because:
- has known many trades in our region for decades
- very good reputation/experience
- can adapt plans more flexibly in case of illness/material shortages (has several framers, carpenters, electricians, etc. available)
- feels personally committed to the construction project

What do you think, which option would be your favorite and why?

Thank you very much for your opinions, advice, and tips!

Grantlhaua30 Mar 2020 09:05

Mertha257 schrieb:

Option 2: local architect/site manager who uses local trades because:
- has known many tradespeople in our region for decades
- very good reputation/experience
- can be more flexible with redesigns in case of illness/material shortages (has several structural builders, carpenters, electricians, etc. on hand)
- feels personally committed to the construction project.

Regardless of COVID, I would never build with a prefab home provider... We changed plans or did things differently ourselves multiple times during the construction phase.

The big companies aren’t necessarily more financially stable either. In construction, I would say the smaller ones are doing better than the big players. The "big" companies near us have invested the money they earned in new equipment/machinery and capacity expansions. I don’t think they could easily cover a half-year slump.

Besides, construction continues despite COVID. At least on the sites I know.

Mertha25730 Mar 2020 21:30

11ant schrieb:

Do I hear the naive dream of "too big to fail"? Philipp Holzmann was bigger.
Do you know the company’s equity ratio?

Find the keyword

Hello 11ant, thank you very much for your comments.

No, in my opinion, we are not naive but exactly looking for such alternative perspectives. And indeed, I do not know the equity ratios of Viebrockhaus or Eco System Haus. Others have also commented in this regard.

And the statement about material storage comes only from our circle of acquaintances who have also built with Viebrockhaus and were satisfied. Of course, I have no proof of that.

Mertha25730 Mar 2020 21:33

nordanney schrieb:

Is that really the case? Despite being a franchise with several independent construction companies?
I’d rather go with an architect and individual trades. If one tradesperson is unavailable, you just hire the next. If Viebrockhaus isn’t available, everything is at a standstill.

Oh, and Viebrockhaus also has to buy its materials and can’t build if there are no windows available. And if there’s a COVID outbreak on the site, it doesn’t matter who stops the work.

Hello nordanney, thank you for your comment.

As I wrote in the previous post, it might not necessarily be the case, and an architect with local trades could possibly be more resilient in a crisis. But that’s exactly what I’m/ we’re interested in—hearing different opinions like these.

Mertha25730 Mar 2020 21:37

#10

PyneBite schrieb:

Sending greetings to the "neighborhood." Are you also building in Berkenthin?

We also want to build near Lübeck.
However, we would always choose an architect. We visited many homebuilding companies (Team Massiv, Viebrockhaus, ECO, etc.), and the actual construction work provided by these companies in our area is relatively limited. They handle the planning and coordination, for which, in my opinion, you have to pay rather high markups.
At the same time, these companies manage large sums of money as the entire construction project is processed through them. I see the risk of default as not insignificant.

I prefer to contract the respective trades separately myself.

Best regards from Bad Oldesloe.

Hello PyneBite, good evening to the neighborhood! Yes, we are also building in Berkenthin – that’s right.

The topic of default risk has already been commented on twice before; that may indeed be the case.

And yes, we also visited Viebrockhaus and ECO and found the costs high compared to the construction service provided. May I ask which you thought was better – Viebrockhaus or ECO?

Contracting trades separately is also our preferred option so far, especially since you probably have better control and can explore alternatives during the individual construction phases.

Thanks for the post – have a great evening!

Mertha25730 Mar 2020 21:40

#11

morph3us schrieb:

I know someone building with V (around Hamburg), and progress is continuing there at the moment. However, they will also face a 2-3 week delay. This can happen anywhere since not only workers (healthy and available) are needed, but also materials.

We are currently facing similar questions. A lawyer advised us to initially commission only the planning phase including the building permit/planning permission application, since no one knows how long this will take (plus risks such as price guarantees expiring, the company going bankrupt, everyone in the company passing away, etc… lawyers tend to be naturally pessimistic…) and then sign for the rest later. The downside is that prices negotiated now without the 2020 surcharge will likely no longer apply.
Crystal ball predictions can go wrong in either direction. The advantage is that you keep control.

Hi morph3us, thanks for your post!

I have also heard/read about Viebrockhaus, but as you say, this is probably just a short delay that will likely grow.

I find your idea of commissioning only the planning phase with the building permit/planning permission application very interesting. At least you would have completed the formal bureaucratic step and could then reassess trades/materials/the COVID-19 situation in 2-3 months before awarding contracts.

Thanks for the tip!

Mertha25730 Mar 2020 21:44

#12

Grantlhaua schrieb:

Putting Corona aside, I would never build with a prefab house provider... We ended up redesigning or doing things differently ourselves during the construction phase.

The big companies aren’t necessarily more solvent either. On construction sites, I’d say the smaller ones are actually doing better than the big players. The “big” companies nearby have invested the money they earned into new equipment/machinery and capacity expansion. I don’t think they could easily manage a six-month downturn.

Besides, construction is continuing despite Corona, at least on the sites I know.

Good evening Granthaua, thanks for your comment!

We also see the spontaneous (whether intentional or unintentional) redesigns during the construction phase as an advantage, and it is probably easier to manage with an architect or your own construction manager.

Regarding financial stability, you are the fourth person to question it particularly for the “big players.” We have also been told that smaller and mid-sized local trades tend to be better partners, as they feel more committed to the local construction (since their own reputation is at stake) and probably now have to actively look for projects again due to Corona-related restraint. Construction seems to be continuing in the area as well, even though, because of Corona, only a few people or individual trades are allowed on site at the same time.

Thanks for the post!

ᐅ Builder of Solid Construction Homes or Architect During the Coronavirus Pandemic

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