ᐅ General contractor requests price increase for the entire house
Created on: 6 Oct 2022 15:33
M
MSHausbau
Hello everyone,
I’ve read a lot and hope to get some advice...
We are building a house and are about 90% finished. The fixed price agreement expires at the end of October, and the contract doesn’t specify what happens afterward.
Now our general contractor is asking for €50,000.
His reasoning: As of today, the house is 18.66% more expensive, which is €51,250, so he is demanding €50,000 from us.
He already indicated over the phone that it probably won’t be the full 50K, but the 10K we offered was too low.
Now the question is, are we completely mistaken? I don’t see why we should pay extra for the entire house, only for the items that are still outstanding. That would be about €8,000 if you really apply the 18%.
Do you understand what I mean?
Does anyone have legal experience or some tips on how to argue this?
Our lawyer advises settling in the range of €15,000 to €20,000.
I’ve read a lot and hope to get some advice...
We are building a house and are about 90% finished. The fixed price agreement expires at the end of October, and the contract doesn’t specify what happens afterward.
Now our general contractor is asking for €50,000.
His reasoning: As of today, the house is 18.66% more expensive, which is €51,250, so he is demanding €50,000 from us.
He already indicated over the phone that it probably won’t be the full 50K, but the 10K we offered was too low.
Now the question is, are we completely mistaken? I don’t see why we should pay extra for the entire house, only for the items that are still outstanding. That would be about €8,000 if you really apply the 18%.
Do you understand what I mean?
Does anyone have legal experience or some tips on how to argue this?
Our lawyer advises settling in the range of €15,000 to €20,000.
H
hauskauf19878 Oct 2022 00:41xMisterDx schrieb:
That may seem strange to you in the public sector or civil service, but profit margin is essential for a private company’s continued existence. This also affects the financial stability of employees and subcontractors.
We in the private sector have to earn our money in a free market, not through taxes, fines, and pointless fees 😉Uhm okayyyy. I also work in the private sector and happen to be in the construction industry, but okay 🙁F
fromthisplace8 Oct 2022 07:58xMisterDx schrieb:
No, that is simply wrong in general terms.
For example, if the general contractor is a corporation, they could even face legal consequences for not using every possible means to achieve the profit that was (legally) attainable. Investors can sue... and they will... You accuse the user of generalizing, but you are generalizing yourself all the time.
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WilderSueden8 Oct 2022 12:37I also see a very American approach to business here. Increasing profits in the short term without regard for customers and employees. After a few years, the reputation is damaged, and the only way to compete is on price.
A company certainly has some room to maneuver, even one that is publicly traded. A good reputation is also an asset.
A company certainly has some room to maneuver, even one that is publicly traded. A good reputation is also an asset.
fromthisplace schrieb:
You accuse the user of generalizing, but you yourself have been generalizing the whole time.Nowadays, in almost every business, it is no longer enough to simply maximize profit and disregard everything else. Fairtrade, sustainability, a good reputation, and word-of-mouth are also important marketing tools in the construction industry. We can also see in this forum how carefully these aspects are protected. This is the only topic where every post is reviewed before publication.
WilderSueden schrieb:
A company definitely has some flexibility, even one that is publicly traded. A good reputation is also an asset. K a t j a schrieb:
Especially nowadays, in nearly every business, it is no longer enough to just maximize profit and not care about the consequences. Fair trade, sustainability, a good reputation, word-of-mouth marketing – these are also important marketing tools in the construction industry. When a good reputation is ruined, companies get merged and agencies are hired to come up with a trendy, clean new name for the new entity. Then they hire programmers for just a few baht or rupees to boost entire shipments of likes online via bots. That some “customer” reviews *ROTFL* in writing style resemble the Nigeria Connection is no coincidence. Consumers reliably trust a “five-star gold-status self-invented loyalty (or fool’s) seal” – at least if the scammers also acquire the matching “shell company founded ages ago.” Since most shareholders are actually more like sharehoppers, long-term effects in five years don’t matter: five years is twenty quarters (= an unimaginable long-term for day traders). The best way to “undermine” this “system” is by practicing “buy local” (preferably from owner-operated businesses). By the way, propaganda with only one “mouth” – “mouth_to_mouth” is a form of artificial respiration in first aid ;-)
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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fromthisplace8 Oct 2022 20:56I also want to mention our general contractor here. Just a note, this is only my example and therefore a generalization: After signing the contract in August 2021 and starting construction in January 2022, we did not pay a single cent more. The shell structure was built with an accuracy of 1 cm (0.4 inches), allowing the windows to be ordered in February. Our biggest frustration so far has been that the plasterers messed up a window latch.
The consequence of this is that a well-known couple has already signed a contract there, and another is currently in the offer phase.
I don’t mean to say that we are the best or the smartest. We were also lucky with our gut feeling and the fact that our general contractor is focused on their reputation rather than maximizing profit.
The consequence of this is that a well-known couple has already signed a contract there, and another is currently in the offer phase.
I don’t mean to say that we are the best or the smartest. We were also lucky with our gut feeling and the fact that our general contractor is focused on their reputation rather than maximizing profit.