ᐅ Conduct/Consequences Regarding the Construction Company

Created on: 17 Jul 2022 13:40
K
Kathi92
We have the following problem and are really at a loss now:

We started building our house in June 2021 and hired a construction company as the general contractor to deliver the turnkey project up to the finishing stage. Everything went smoothly at first, but construction then stalled due to delivery difficulties with steel/reinforcement for the intermediate ceiling. Over the winter, very little progress was made (roof, windows, and completion of brickwork). By March, the shell was finished and the roof was on.

The big problem is that the construction company continues to work at a snail's pace, which we can no longer tolerate. It has taken them a full 4 months just to complete all installations (electrical, plumbing). By the end of June, these were finally finished. To explain: they brought in an electrician from the local area who, after his regular 40-hour job, worked only about 1-2 hours in the evenings at our site. Often, he didn’t feel like working after his day job because he also wants to go home at some point. So, it dragged on forever. We didn’t even know this but found out from neighbors. This is not what we understood as subcontracting, as originally discussed. And this has been the pattern throughout. We constantly call and visit; 1. we hardly see anyone working, and 2. we are repeatedly promised, “Next week we’ll speed up,” “Our house is the top priority,” or “On day X, the interior plaster or screed will be done.” But it never happens.

We have been building for 13 months now and still haven’t even reached the stage of rough floor completion.

Originally, according to the schedule from June 2021, completion was planned for May 2022, assuming no setbacks like lockdowns. We were aware of that but made it clear at contract signing that we needed to move in by this summer at the latest (August 2022). They assured us this would work. Then they shifted to summer or June/July (due to material delivery issues).

In May, we approached them because it was already clear to us that finishing in June/July was impossible at their pace. We explained our situation: we absolutely must move in by the end of August. They said they would finish by the end of August, that they were now working continuously. We were promised drying equipment for the screed to catch up, all electricity costs covered as a goodwill gesture, and that screed and interior plaster would be done by the end of May. Then, we went on a two-week vacation in early June and came back shocked. We went to the house and nothing had happened. Zero progress. Just last week, we finally got the interior plaster. No sign of underfloor heating or screed. And the house is supposed to be handed over turnkey in about 6 weeks?

I can no longer listen to their stories and empty promises. Especially since we have an 18-month-old toddler and I am currently 5 months pregnant. So just staying in a hotel or with friends/family isn’t easy in this situation (and who pays for that?). The kitchen planner also refuses to take measurements without the screed, so we will be without a kitchen for weeks. A great situation with a child and baby. Our relationship is also suffering massively. This is the biggest source of conflict. It’s all a nightmare.

I already wanted to go to a lawyer, but what good would that do now if they can’t finish? The harshest letter won’t change anything. I can’t even count how many times we call and visit. It’s always the same empty talk. We didn’t agree on any contractual penalties due to Covid lockdowns since they couldn’t influence the construction then.

I am considering proposing that they complete the rough floor stage (screed) and then we finish the house ourselves with professional tradespeople. I think we would be much faster than them. Does anyone know what else we can do?

Thanks for reading!
K
Kathi92
17 Jul 2022 18:06
Axolotl-neu schrieb:

So, let’s get straight to the point. WHAT DOES THE CONTRACT SAY???
And I don’t mean what you interpret from the contract. I mean the exact wording. Otherwise, no one here can help you.
First you say May 2022, then suddenly something about 12/2022 and some conditions.
Make up your mind and share the contract with us...

The contract states “Completion no later than 12/2022.” At the time, we said we could not sign under that condition. The builder then said they had to include that formally because of the lockdown and supply difficulties, as these circumstances were beyond their control. We could understand that, of course. However, we received a construction schedule, which both parties agreed to and signed, with a project end date of May 2022. This schedule was also presented to the bank, which relied on it accordingly.

Currently, there are no supply issues (the warehouse is stocked with our materials) nor any lockdown. Therefore, the deviation from the construction schedule has no valid basis.

But it seems to be a case of one person’s word against another’s, which helps no one—least of all us.
bauenmk202017 Jul 2022 18:07
I would guess that the general contractor (GC) is working on a different house right now where there is more pressure. This means all their resources are tied up there, and you (those who are not complaining the loudest yet) are being put on the back burner.

Currently, it seems that the tradespeople are being sent from one site to another. Sometimes materials are missing or follow-up calls are needed.

However, if everything is already on site at your project, the GC should actually be motivated to complete the build so that the warranty period can start. But I suspect they are currently busy with "fix-ups" elsewhere. You might want to find out where that could be.
A
Axolotl-neu
17 Jul 2022 19:20
Kathi92 schrieb:

The contract states "Completion by 12/2022 at the latest."
That basically says it all, and this thread could be closed. Contracts must be honored, so the main contractor has until the end of the year to finish. All the other discussions around it don’t matter anymore. It’s unfortunate, but that’s how it is.
The construction schedule is just a plan in this regard. It is often attributed to Einstein that he said: Planning replaces chance with error. Therefore, the agreed completion date in writing between you and the main contractor remains December 31, 2022, at the latest.

Sorry. Just trying to be honest.
N
Neubau2022
17 Jul 2022 19:28
Kathi92 schrieb:

The contract states "completion by 12/2022 at the latest." At the time, we said we couldn’t sign under that condition. The builder then said they had to include it pro forma because of the lockdown and supply difficulties, which they couldn’t influence under the circumstances. We could understand that, of course. However, we received a construction schedule that both we and they were to follow (completion by the end of May 2022), which was signed and also submitted to the bank. The bank also relied on this construction schedule.

There are no supply difficulties (the warehouse is stocked with our materials) nor any lockdown. So the deviation from the construction schedule has no valid reason.

But then it seems to be a case of one statement against another, which benefits no one, least of all us.

1. Are you professionals that you don’t have an independent construction supervisor? If not, that’s negligent. I hope you’re lucky and that the general contractor at least works diligently. Important aspects include the execution of the foundation slab and the installation of the underfloor heating system.

2. It’s the same for us. Construction time guarantee of 10 months, so end of September 2022. The first construction schedule had house handover planned for May 2022. That was quickly abandoned. The second schedule is now end of July 2022, which also won’t be met due to the geothermal heat pump. We are terminating the apartment lease as of 10/31/2022.
K
Kathi92
17 Jul 2022 19:33
Axolotl-neu schrieb:

That basically says it all, and the thread could be closed. Contracts must be honored, and the general contractor (GC) has until the end of the year to complete the work. Nobody cares about all the talk around it anymore. It’s unfortunate, but that’s how it is.
The construction schedule is just a plan in this regard. It’s attributed to Einstein that he supposedly said: planning replaces chance with error. Therefore, the agreed completion date in writing between you and the GC remains the firm deadline of December 31, 2022 at the latest.

Sorry if I came across as harsh.

Thank you for your response!

I don’t quite see it the same way. Especially since oral side agreements (“all the talk around it”) can indeed be legally binding, particularly as we did not agree to any requirement for written form. Why would I voluntarily sign the contract with that clause if I then don’t have anywhere to live for 4 months? At signing, it was clearly stated that it MUST be finished by summer at the latest. That was the agreement. Including the signed construction plan.

Tomorrow we will contact a lawyer and have a formal letter drafted. Maybe that will have some effect.
H
hauskauf1987
17 Jul 2022 19:48
Axolotl-neu schrieb:

That basically says it all, and the thread could be closed. Contracts must be honored, so the general contractor has until the end of the year. Nobody cares about all the other talk around it. It’s unfortunate, but that’s how it is.
The construction schedule is just a plan in that regard. It’s attributed to Einstein, who supposedly said: Planning replaces chance with error. Therefore, the completion date agreed upon in writing between you and the general contractor remains no later than 12/31/2022.

Sorry. Just my opinion.

That’s how it is.
You have no leverage.