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

Lois L. schrieb:

And what do you mean by having done almost everything wrong?

We had negotiated quite a long fixed-price period, but ended up exceeding it mostly due to our own fault or lack of knowledge. On one hand, we delayed selling our previous home for too long, which we could have handled more quickly. Additionally, we requested an exemption from the local development plan, which took a lot of time and turned out to be unwise in hindsight. Especially since the forum had already pointed out that the requested changes probably wouldn’t be approved. Since we couldn’t assess the importance of those changes, we thought, "Oh well, they’ll probably allow it." We regarded the exemption as just a formality. 🙂

We also assumed that some things could run in parallel, which was not possible or simply not allowed.

We did not take seriously that in this federal state you don’t need an explicit building permit, but the absence of a permit within three months automatically counts as approval. We just couldn’t believe it. Even though I can be quite persistent, ;-) I didn’t follow up consistently because I wanted to be considerate of the difficult situation due to COVID-19, employees being on vacation, and so on.

For us, the situation is still acceptable because the construction company needs to stay motivated, otherwise, despite all contracts being signed, there could be even more problems. And hopefully, we have secured that motivation now.

Basically, I feel I’ve learned that currently, as a builder/client, your position is significantly weaker than the construction company’s because demand is so high. From a business perspective, I understand it: Every house sold this year and built next year can now be sold at a much higher price. That’s just the market principle of supply and demand. The recently falling material prices don’t have to be passed on by the builder.

Put simply: A construction company can afford to push through a lengthy legal process with an uncertain, even somewhat assured, outcome – but the client/builder cannot.

Despite everything, we will be glad if/when we move into the house next year. :-) And yes, I know that was naive: We’re not enjoying the house-building project as much as I had hoped. ;-) If I had to decide again, I would always choose an existing house. 🙂

ypg schrieb:

Off Topic:

If you have the exact price, please post it in your thread.

Yes, I will do that, but I don’t have an exact price yet. I want to list all services in detail so that other forum members can make use of it.

Is there a subforum here for prices/costs?

Pinkiponk schrieb:

Although we had negotiated a fairly long price guarantee period, we mostly exceeded it due to our own fault/lack of knowledge.

I find the openness and fairness you show very positive, especially since your building partner could have behaved more politely.

Regarding guarantees:
Many people tend to shift risks onto others and ideally want full coverage without paying for it. As a result, offers are made to satisfy this desire, often by people who also tend to shift risks onto others and want to maximize their profit margin.

Pinkiponk schrieb:

Is there a subforum here for prices/costs?

Uh, it has always been here:
https://www.hausbau-forum.de/forums/baukosten-foerderungen.180/

Pinkiponk schrieb:

We had negotiated a fairly long price guarantee period, but ended up exceeding it mostly due to our own mistakes and lack of knowledge. On one hand, we delayed too long in selling our previous home, which we could have handled more quickly. Additionally, we requested an exemption from the zoning plan, which took a lot of time and turned out to be unwise in hindsight. The forum had already pointed out that the requested changes were unlikely to be approved. Since we couldn’t assess the importance of those changes, we thought, "Oh, they’ll probably approve it." We considered the exemption just a formality. 🙂

We also assumed that some things could run in parallel, but that wasn’t possible or allowed.

We didn’t take seriously the fact that in this federal state no explicit building permit is required, but that the absence of a permit within three months automatically counts as approval. We simply couldn’t believe it. Although I can be quite persistent ;-) I didn’t follow up firmly enough because I wanted to be considerate of the difficult situation with COVID, staff vacations at the authorities, and so on.

For us, the situation is acceptable now, though, because the construction company also needs to stay motivated. Otherwise, despite all the signed contracts, there would be even more problems. I hope that we have now secured that motivation.

Basically, I feel I have learned that currently the client is in a significantly weaker position than the builder, because demand is so high. From a business perspective, I understand it: Every house sold this year and built next year can now be sold at a much higher price. It’s the market principle of supply and demand. Builders don’t have to pass on the recently falling material costs.

And, to put it simply: a builder can afford to engage in a long, uncertain legal process lasting years, while the client cannot.

Despite everything, we will be happy if/when we move into the house next year. 🙂 And yes, I know it was naïve: We are not having nearly as much fun as I expected from the house-building project. ;-) If I had to decide again, I would always choose the existing house. 🙂

Thank you. Although we are still at the very beginning, what you write already sounds somewhat familiar to me...

hampshire schrieb:

I really appreciate the openness you’ve shown, especially since your building partner could have been a bit more cooperative.

Regarding guarantees:
Many people tend to shift risks onto others and ideally want full coverage without paying for it. So offers are made to meet this demand—often by people who also tend to pass risks on to others and aim to earn the highest profit margin.

Well, it doesn’t have to be full coverage. But it would definitely be nice to reduce risks.
Why does wanting to build already have to be so stressful?