I am honestly shocked right now. Our construction company just informed me that they want 21.4% more money due to price increases in the building industry. At the moment, I am still stunned and can’t think clearly.
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FoxMulder247 Sep 2021 22:44Wow, if it’s that company... they were also one of our top choices.
What surprises me, however, is that almost two years after signing, construction hasn’t even started or is not yet scheduled. Only the selection of materials has taken place.
What was the reason for this? Was the start of construction delayed by one of the parties? Can the fixed price not be extended if the general contractor delays the start?
We also signed in December 2019 and moved in by May 2021.
What surprises me, however, is that almost two years after signing, construction hasn’t even started or is not yet scheduled. Only the selection of materials has taken place.
What was the reason for this? Was the start of construction delayed by one of the parties? Can the fixed price not be extended if the general contractor delays the start?
We also signed in December 2019 and moved in by May 2021.
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HilfeHilfe8 Sep 2021 07:11Well... it’s tough. But nothing was done between 2019 and 2021. Who was to blame?
Now blaming the “bad” general contractor and saying it’s tough. Should the general contractor now buy materials at a higher price and not pass on the price increase, even though you provided a commercially sound contract?
The price escalation clause was included. Unfortunately, I see it in a nuanced way and I am on the side of the general contractor.
Now blaming the “bad” general contractor and saying it’s tough. Should the general contractor now buy materials at a higher price and not pass on the price increase, even though you provided a commercially sound contract?
The price escalation clause was included. Unfortunately, I see it in a nuanced way and I am on the side of the general contractor.
I’m referring back to the thread here, “Construction costs are currently skyrocketing.” So, it doesn’t seem to be completely unfounded.
I’m also curious about what has been done in the past nearly two years, or why certain things haven’t been done.
As a client, in the current situation (for over a year now), I would have definitely pushed the project a bit more, especially with the deadline of June 30, 2021.
A reputable company, however, would certainly have communicated this differently, through the personal contact person. And they wouldn’t have gone from zero to 100 all of a sudden.
I’m also curious about what has been done in the past nearly two years, or why certain things haven’t been done.
As a client, in the current situation (for over a year now), I would have definitely pushed the project a bit more, especially with the deadline of June 30, 2021.
A reputable company, however, would certainly have communicated this differently, through the personal contact person. And they wouldn’t have gone from zero to 100 all of a sudden.
The increase is not exaggerated. A construction manager we contacted also mentioned 15–20%, and that was weeks ago. However, he was also critical of the tradespeople. From his perspective, it couldn’t be justified by COVID-19 or similar reasons; instead, he suspected that some are just taking advantage of the situation to make money. Unfortunately, that doesn’t help the homeowner. They are quite helpless in this situation. But at least there was a contract here, so a lawyer should get involved. Whether it’s a good idea to force a construction manager, luckily, is another question. I wouldn’t know what I would do 🙁
I agree completely. I check almost weekly how the construction costs are developing, since we finalized the bank financing about 2 weeks ago. We have a buffer of around €40,000 (approximately $44,000), but I don’t want to use it all up right at the start. Since our general contractor (GC) purchased most of the materials before the crisis (except for the roof timber), the price has “only” increased by about €7,000 (around $7,700). He doesn’t expect any further increases.
I don’t understand the timing with Pinkiponk’s GC at all. Prices now seem to be slowly (very slowly) normalizing. Why he is making demands now and not 2 months ago, when things were much tighter for so long, is unexplained and frankly, a no-go on a personal level.
That said, the question remains open @Pinkiponk, you are here in the forum, you know prices are rising significantly. You know your price lock has long since expired and nothing has been done for such a long time. Were there any prior discussions with the GC, or was it just hoped everything would work out?
Since this involves a large manufacturer who appears to be affecting several homebuilders, perhaps you could join forces and, in the worst case, threaten to involve the press. But that would probably be a last resort.
I don’t understand the timing with Pinkiponk’s GC at all. Prices now seem to be slowly (very slowly) normalizing. Why he is making demands now and not 2 months ago, when things were much tighter for so long, is unexplained and frankly, a no-go on a personal level.
That said, the question remains open @Pinkiponk, you are here in the forum, you know prices are rising significantly. You know your price lock has long since expired and nothing has been done for such a long time. Were there any prior discussions with the GC, or was it just hoped everything would work out?
Since this involves a large manufacturer who appears to be affecting several homebuilders, perhaps you could join forces and, in the worst case, threaten to involve the press. But that would probably be a last resort.
driver55 schrieb:
I’m also curious about what was done in the past nearly two years, or why certain things were not done. For example, the old house was sold first.
You could say the general contractor contract was signed way too early.
Tom1978 schrieb:
I don’t understand the timing of the general contractor for Pinkiponk at all. Prices now seem to be slowly (very slowly) returning to normal. Between 2019 and 2021, not only the period between February and July 2021 matters, but also the time before that. It’s no surprise that the price guarantee eventually expires.
I’m not saying that over 20% is justified (no idea), but overall, you have to expect price increases throughout the entire period.