ᐅ Stopping or pausing a home construction project? Costs too high
Created on: 23 Nov 2021 12:06
C
Coffee82
Good morning,
My husband and I want to build a house.
We already have the plot of land. We are now facing an unpleasant situation.
We planned the house roughly with an architect, which went very quickly.
No building permit / planning permission has been applied for yet, and no detailed execution plan has been made.
The architect provided a cost estimate that surprised us a lot.
Of course, we had previously asked acquaintances, friends, and family members about the costs of their construction projects.
Obviously, we only considered recent projects.
The architect’s estimate is more than double what we initially expected—around 4500-5000€/sqm (420-465 USD/sqft).
After this, we consulted a few others locally and two from a bit further away. Everyone seems to agree on the construction costs.
I’m not allowed to share the documents here, but there is really nothing unusual. It’s a KW40+ house with 198 sqm (2132 sqft) of living and usable space, plus a double garage attached to the left side of the house. Of course, no basement.
The specifications given to the architect were average and typical. No marble floors, no smart home features. A simple house like my uncle’s, just new.
It looks like the house will cost around 1 million euros. On top of that, of course, there are additional costs such as fees for the architect, landscaping, etc. Together with the land, the total is so high that we neither can finance it nor afford to pay it.
Unfortunately, the architect had to do quite some work before he could estimate the costs.
Now we are worried that if we cancel the project, the architect will want 15,000 to 20,000 euros for the work he has already done.
What would you do in our place?
Best regards,
Coffee82
My husband and I want to build a house.
We already have the plot of land. We are now facing an unpleasant situation.
We planned the house roughly with an architect, which went very quickly.
No building permit / planning permission has been applied for yet, and no detailed execution plan has been made.
The architect provided a cost estimate that surprised us a lot.
Of course, we had previously asked acquaintances, friends, and family members about the costs of their construction projects.
Obviously, we only considered recent projects.
The architect’s estimate is more than double what we initially expected—around 4500-5000€/sqm (420-465 USD/sqft).
After this, we consulted a few others locally and two from a bit further away. Everyone seems to agree on the construction costs.
I’m not allowed to share the documents here, but there is really nothing unusual. It’s a KW40+ house with 198 sqm (2132 sqft) of living and usable space, plus a double garage attached to the left side of the house. Of course, no basement.
The specifications given to the architect were average and typical. No marble floors, no smart home features. A simple house like my uncle’s, just new.
It looks like the house will cost around 1 million euros. On top of that, of course, there are additional costs such as fees for the architect, landscaping, etc. Together with the land, the total is so high that we neither can finance it nor afford to pay it.
Unfortunately, the architect had to do quite some work before he could estimate the costs.
Now we are worried that if we cancel the project, the architect will want 15,000 to 20,000 euros for the work he has already done.
What would you do in our place?
Best regards,
Coffee82
W
WilderSueden23 Nov 2021 15:54Coffee82 schrieb:
We are seriously considering KfW55. But if the savings are only around €50 (about $55) for the entire winter, then it obviously doesn’t make much sense.
...
There isn’t much reliable information about this available online either. The point is that people tend to overestimate how much energy heating requires and underestimate how much hot water consumption costs (which is usually also provided by the heating system). This doesn’t depend on the exterior walls. And with 6 people, you will need a lot of hot water. Reliable information is hard to find because, for a proper comparison, you would need not only two houses with identical features, but also similar occupants.
H
hampshire23 Nov 2021 16:00Coffee82 schrieb:
He should not find out about our doubt. The reason is obvious.No, actually he should be aware of your doubts and support you. Holding back won’t help anyone.Try approaching it creatively with your husband. Who are you, what skills do you have, what do friends and business partners appreciate about you, what contacts do you have... From this collection, you can build a story.
For example: Suppose one of you is creative with a photo or film camera and has already published some films. This already offers something potentially interesting for a home builder or tradesperson. During construction, a documentary could be made that benefits the service providers. If this story is well developed and appealing, you become more attractive as a customer. There are countless possibilities to invent and support.
Coffee82 schrieb:
Unfortunately, we didn’t discuss the budget. His argument was that he needed to sketch and prepare something first in order to be able to provide any estimate. Coffee82 schrieb:
We don’t even know how valuable his floor plan actually is. He just put our wishes regarding the rooms, their sizes, and locations within the house on paper, created a 3D model, and added some facade cladding. At the moment, it’s more of a conceptual or imaginative level. Coffee82 schrieb:
Now we’re worried that if we cancel the construction, the architect will demand 15,000–20,000 euros from us for the work he has already done. You have unfortunately dealt with a complete novice who wants to make money by charging for computer graphics according to HOAI (official fee scale for architects and engineers) and apparently were naive enough not to arrange a proper architectural contract with him. In the worst case, he will claim his corresponding listed fee for the work done so far and lost profit for design phases up to and including phase 8, which he will no longer carry out if the project is terminated at the current location. Cutting ties with this “artist” will still be your best option. An evidently improper approach that does not follow the official fee phases could be your strongest argument for negotiating a settlement. An experienced architect can usually estimate the costs just by reviewing the plot and the building volume alone — without having sketched a single line.
Tom1978 schrieb:
You should definitely contact 10–15 builders. Oetzberger schrieb:
I think KfW 40 is really great, but you have to be able and willing to afford it. And if I understand the thread correctly, this is about solid construction rather than timber frame construction. Oetzberger schrieb:
And you’ll be surprised by some of the excessive markups charged in solid construction. It’s a luxury feature, which naturally comes with luxury pricing. Coffee82 schrieb:
At the beginning of last week, we sent out 6 or 7 emails requesting an initial consultation. We mentioned that the plot is secured and that we already have an idea of what we want. Only one person responded with, “We will get in touch with you.” Nothing else happened. Because of this, we don’t want to completely part ways with the architect yet, as we currently have no alternative. Normally, I would say that compared to a general contractor (GC) who just follows instructions, practically any architect would be a better option. Unfortunately, you managed to find the exception. Still, you need an architect — but initially only hire them for design phases 1 and 2, then reassess. At the very mention of “KfW efficiency level 40+,” your “architect” should have realized the project would most likely head toward timber panel construction, and the preliminary design should have been done without bias toward a particular building method. Although this insulation standard is possible in masonry construction, it is almost never done monolithically. The fact is that timber panel builders have a “home advantage” with their decades-long experience of thermal insulation integral wall systems, while masonry builders have to resort to variants of external thermal insulation composite systems (ETICS), which they currently use significantly less often than for projects targeting the Energy Saving Ordinance (EnEV) or KfW 55 levels. That is often reason enough for them to ignore cold inquiries from unknown parties. They respond naturally only to personal contact, preferably from people coming by client recommendation. Therefore, in such a case—even though the “10 to 15 builders” recommended by @Tom1978 would normally be way too many—sometimes even 30 might not suffice if you want to select three to five comparable offers. Most providers in the “heavyweight” class with “grandma on board” will market appropriate models as “generation houses.” You should try to narrow that down to “middleweight,” because reality will be closer to the majority’s price estimation than to naive expectations. Generally, three-generation houses are hardly found in catalogs, so my advice is to plan with an architect—just not this one. By the way, he should feel free to read what I think of “amateurs.” ;-)
It’s best if you open a new thread (and tag him here and there) with the completed questionnaire from the top of the floor plan section and also show the plot there.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Coffee82 schrieb:
It would be extremely frustrating if the architect showed up and demanded 20,000 for his work.It’s not that simple. He can only expect payment for services actually provided. If he wants 20,000€ (about $21,500), he also has to deliver the work. At that price, these should be submission-ready documents, right?
What does your contract say?
If he only completed part of the service, then he can only invoice for that portion.
For lost profits, he would need to disclose his calculations and, if necessary, take legal action.
Can you have a reasonable conversation with him, or is he being stubborn?
Since he is asking for money from you, you actually have the stronger position initially.
Coffee82 schrieb:
It would be really frustrating if the architect shows up and wants $20,000 for their work.Even though fees are now freely negotiable under HOAI, to my knowledge the architect can only charge the basic rate under HOAI without prior agreement. For a project with gross construction costs of 1 million euros and design phases 1 and 2 (where the first draft is created), this would amount to about €10,000 in fees.
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Pinkiponk23 Nov 2021 17:09Coffee82 schrieb:
The features were described to the architect as standard. No marble floors, no smart home. A simple house like the one at my uncle’s, just new. May I ask why you want to build an architect-designed house if it is going to be a "simple house like at my uncle’s"?
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