ᐅ Developer requests deposit before starting plans

Created on: 3 Feb 2021 07:28
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Antonio2908
Hello everyone,

We are currently in the process of planning our house. We already have a clear idea of how we want it to look. We found a great house online with some modifications.
Now we visited a builder who is requesting a deposit of 4,000 EUR. The reason behind this is understandable: they put in the work, and in the worst case, we might take the drawings to another builder.
However, to me, the amount seems quite high! 4,000 EUR is easily at least half a month’s salary for a draftsman. Or am I mistaken in this?

Basically, I would like to have at least two offers to be able to compare prices.

I have contacted another builder who provided me with a first draft over the weekend without any charges.

What do you think? Deposit yes or no? And if yes, how much?

Best regards,
Antonio
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ypg
3 Feb 2021 19:53
Antonio2908 schrieb:

However, at this level, I find that hard to understand.
🤨
Antonio2908 schrieb:

I boldly claim that an architect who drafts daily and knows everything inside out spends a maximum of 8 hours on such a project.
I would boldly argue that even a good architect, or perhaps especially one, needs 40 hours. Intellectual work takes time!
Antonio2908 schrieb:

An hourly rate of about 60 euros amounts to just under 500 euros for me.
That is, however, a net figure from 2001.
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Antonio2908
3 Feb 2021 20:21
ypg schrieb:

🤨

I’ll boldly suggest that a good architect, or precisely because of that, needs 40 hours. Intellectual work takes time!

However, that is a net figure from 2001.

So architects are probably better paid than IT specialists/programmers...

Well, be that as it may. In my view, that just seems quite high. This concerns a design where you can estimate approximate costs without going into details. So for you, is it common to pay around 4,000 euros for every general contractor, without knowing in advance if the result will meet your expectations?
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Antonio2908
3 Feb 2021 20:25
11ant schrieb:

So, the house you want is in their portfolio, just smaller; and you don’t want it as a "town villa," but with a finished pitched attic on top?
Only a few things can be "easily" changed in a building proposal from a brochure (standard design): moving non-load-bearing interior walls, extending along the ridge axis, increasing the floor or knee wall height, raising the roof pitch; and of course reactivating the basement, so the stairs go down instead of leading to a broom closet. Any further changes will more or less require a thorough redesign. Your description sounds more complex than what an experienced homeowner could handle easily and, first of all, unnecessary for the purpose of comparing prices. Besides, these plans are only of limited use for price comparison: the detailed scope of work is crucial—you can build the same house from the same approved plans for 80 or 140 percent of the price (and conversely, two houses of the same size and specifications can look completely different even at the same price).
By the way: although not as a link, you could at least tell us the model name of the house you like so much.
Why should the house actually be significantly larger than its "template"? Do you have more children? — if the real reason is just to treat yourself to the biggest possible portion of investment-grade concrete: then I recommend a cure in the form of a healthy infection with the philosophy of @hampshire.

I can gladly upload photos of the example property if desired. However, I don’t really want to distract from the main topic of whether this EUR price is justified or not.
PS: another general contractor already sent me a first draft over the weekend. Completely free of charge.
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icandoit
4 Feb 2021 09:28
Then further answers here are unnecessary.

Since the service can be obtained for free, 4,000 is obviously far too much.

Architect’s design phases 1–3 at 350,000 are already 8,000.
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nordanney
4 Feb 2021 13:42
Antonio2908 schrieb:

So, do you think it’s normal to just pay a general contractor 4,000 euros without even knowing if the result will meet your expectations?!

It’s not normal. But it’s fair to say that if you want planning services, it will cost money. Whatever is included in those planning services—I haven’t seen that clearly stated so far. You don’t really need to ask about the price; you just need to decide if it’s worth the money to you.

Most general contractors offer this initial step free of charge. It’s a common way to attract clients. However, if they have enough work, they will put forward a defensive offer (like any tradesperson). If you accept this offer, the general contractor or tradesperson tries to fit the work in addition to their 110% workload and charges accordingly. It’s basically a surcharge for overtime.
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Tassimat
4 Feb 2021 13:54
If the general contractor doesn’t have an in-house draftsman, they have to outsource this task themselves. That usually makes it more expensive, and costs can quickly add up to around 4000€.
Antonio2908 schrieb:

Then architects are probably paid better than IT specialists/programmers…

Of course, a programmer completes a vocational training, whereas architecture requires a university degree.
A freelance, university-educated IT specialist who is not just a programming slave can also charge daily rates of €1000.
You shouldn’t compare this with your own hourly wage as an employee.

Anyway… first ask why it is so expensive and what services you will get for that price. Then you can better decide if it’s worth it for you. As always in life, when in doubt: gather more information.