ᐅ What is the value of a fixed price that is not guaranteed?

Tom1978 schrieb:

In our construction contract, extensions of the construction period due to Corona are explicitly excluded. The construction insurance clearly stated that the industry was one of the few sectors that continued working normally during the Corona crisis.

Which construction insurance is that? That would be very interesting.

Layperson’s opinion: if the contract was signed BEFORE the Covid crisis, then the general contractor (GC) can invoke force majeure. New contracts with a fixed price should again operate normally under standard general terms and conditions.

I’ll put it this way: no one is forced to sign contracts. If you don’t agree with certain points, you simply don’t sign and go to another GC. But if, for whatever reason (e.g., time), someone does sign, they have to accept the consequences of what they agreed to.

You could also look at it from the opposite angle: what does a contract signed by the client mean for the GC if the GC refuses to honor it because they question the contract?

ypg schrieb:

Layperson’s opinion: if the contract was signed BEFORE the COVID crisis, then the builder can invoke force majeure.
New fixed-price contracts should work normally again with standard general terms and conditions.
Let me put it this way: no one is forced to sign contracts. If you don’t like certain terms, you simply don’t sign and choose a different general contractor.
But whoever signs nonetheless, for whatever reason (e.g., time pressure), must accept the consequences of what they have agreed to.
Because you can also ask it the other way around: what does a contract signed by the client mean to the general contractor if the contractor doubts it and does not want to comply?

Are you saying it would be different for others? 😡
So it’s not common practice to do such things?

And what do you mean by the “other way around”?
Like “Poor contractor, having such a terrible client who actually has questions, no, even doubts before signing the contract — and therefore announces they don’t intend to uphold it”? 🤨

Lois L. schrieb:

Poor contractor to have such a dishonest client who actually asks questions, or even has doubts before signing the contract—and then announces they won’t stick to the agreement? 🤨

You didn’t mention anything about questions.
Let’s stay objective: you either sign a contract or you don’t. If one clause or several points raise doubts, you either negotiate them away, don’t sign and look elsewhere, or you sign but don’t complain afterwards.
After all, you choose the contractor. They will—or should—build your house, so they won’t be your enemy or executioner. They will be your partner!
And yes: I am convinced there are homebuilding companies that don’t include such clauses but instead visibly increase the house price so they only attract clients willing to pay around 2400€/m² (224 sq ft) and who are not looking for bargain prices.
Personally, I am more likely to accept a 1% price increase than risk the contractor going bankrupt during my build, because then the risk is on them.

ypg schrieb:

... make sure that only those who are willing to spend 2,400 €/m² (about $220 per sq ft) come, and who are not relying on bargain prices.

2,400 per m² (about $220 per sq ft) is, based on our situation, a bargain price. Well, I guess we made almost every mistake possible.

Pinkiponk schrieb:

2,400 per square meter is, based on our situation, a bargain price. Well, but we probably did almost everything wrong.

Oh come on. Your windows and some other things are more expensive, I think.
The original poster @Lois L. is comparing to the big, low-cost home builders. They work with volume. That means many subcontractor teams with different nationalities, where vaccinations or compliance with distancing and hygiene rules are not necessarily enforced or followed as strictly. As a result, the general contractor might have to hire more expensive teams from surrounding areas on short notice or pay a surcharge because they need the crew urgently. He doesn’t want to be stuck with those costs.
The higher-priced builders often have their own crews or a small fixed group of tradespeople, don’t build in large quantities, and can better assess their workers.