ᐅ Home builder threatens to halt construction work

Created on: 25 Nov 2021 10:22
S
SuJaDe1
Hello,

we are building a prefabricated timber frame house on the Swabian Jura and, after some disputes and stress with the manufacturer (from near Passau), have now received a letter stating that they will stop work immediately until the issues are resolved.

The manufacturer still needs to complete ceiling work, sanitary enclosures, flooring, stairs, and doors. Completion was planned for this year.

What options do I have as the client to ensure that the work is finished as planned this year?
Hausbau081528 Nov 2021 16:52
I would suggest we continue this discussion in my thread to avoid drifting off-topic here.
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SuJaDe1
1 Dec 2021 19:03
Sorry for the delayed response.
This was my first post in the forum, and I’m pleasantly surprised by your feedback.
A few more details about the situation:
- There were disagreements already during the planning phase, and we presented our point of view in several emails and escalation meetings, mostly without any response from the manufacturer.
- Among other issues, we discovered a problem related to the balcony in the plans. In an escalation meeting with sales management and executive leadership, a technical alternative was proposed, which we approved and whose feasibility was also confirmed.
- The planning was so poor that when the groundworks contractor was about to start excavation, he found that the specified height levels were incorrect.
- During the shell construction stage, we noticed that two walls were produced incorrectly. Based on our feedback, the site supervisor shortened the walls using a chainsaw.
- At the shell construction inspection, we found that the balcony was produced and installed incorrectly, contrary to assurances.
- We withheld interim payments until clarification.
- No response from the manufacturer for three weeks.
- After repeated inquiries, cost increases suddenly appeared, justified by the complexity of the planning and to be offset against the balcony damage.
- A personal meeting with the former owner (now only managing director together with three others) took place.
- Potential solutions were discussed (financial compensation and the goal to complete the construction this year).
- Another cost increase was issued. I rejected (did not accept) this additional cost by email.
- I requested another meeting with the former owner. This request was blocked.
- An email from the managing director followed, stating that work would stop until the cost increases were signed by us and the interim payment was made.
- Interim payment was made, less a retention amount.
- Work stopped this week.
- Yesterday, an email indicated that six installers would resume work on site next week. We were asked to reserve rooms (this was agreed).
- Today, an email from the managing director stated that work will not continue next week unless the cost increases are signed by tomorrow noon.
What is your opinion?
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SuJaDe1
1 Dec 2021 19:08
One more point I forgot. We have hired a lawyer (fortunately, we have builder’s insurance). Not aggressive, but aiming to de-escalate. We are still considering whether the next email should be sent by me or by the lawyer.
Y
ypg
1 Dec 2021 19:38
SuJaDe1 schrieb:

we had in several emails
SuJaDe1 schrieb:

We are still considering whether the next email
I have to mention here that writing an email when you want to complain or express dissatisfaction is certainly easier than shouting, but an email is the worst form of communication by far. Maybe next time you should choose a different way of communicating if something serious is unclear—I believe the lawyer would agree as well. The written word is very patient… it is not uncommon to read something differently than it was intended.
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SuJaDe1
1 Dec 2021 19:56
That is probably true. However, if conversations are not possible or are interpreted differently afterward, you are left without any proof if there is no email. We are currently paying a high price for our good faith and trust in the honesty of others.
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Joedreck
1 Dec 2021 20:47
Given the complexity, I would only recommend consulting a lawyer. It’s easy to lose track quickly.