ᐅ Delivery issues, material shortages – as of October 2022

Created on: 19 Oct 2022 08:12
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Nixwill2
Hello everyone,

Since July, we have had our approved building permit / planning permission, but since then, absolutely nothing has happened on the part of the home builder (prefabricated house). No planning is being done until the selection appointment, and we have now been given an appointment for this in February 2023.

The original timeline was for the basement in December 2022, the house about 4-6 weeks later, and moving in roughly April-May 2023.

Now we are being told that the basement will arrive at the earliest 2-3 months after the selection appointment, the house will be delivered not 4-6 weeks later as originally planned, but in 5-6 months, and the finishing work will take not 3-4 months but rather about 6 months.

Overall, this means that it could be a whole year later before we can move in than originally agreed.

We have a construction contract under the building code. Unfortunately, the contract does not say a word about delivery or move-in dates (I know, we were quite naive and foolish to trust the sales representative so much).

All of this is repeatedly explained by missing materials and supply problems, although we actually believe that the builder overcommitted with orders, took on way too much (before everything completely collapses), and now cannot deliver quickly enough.

(Of course, we are also struggling with costs and cannot and do not want to just stand by. Losing the subsidy hit us pretty hard, then of course the general price increases — from June 2023 we will have to pay the full loan plus our current rent, and from November 2023, also default interest at the bank. The kitchen is scheduled for delivery in May 2023, which will bring price increases and storage costs to us, and as I said, the selection appointment hasn’t even happened yet—we don’t even want to know the prices for floor coverings and such.)

What I really want to know from you is: what is the actual current situation regarding raw materials? I have lost track and hear here and there that things have actually stabilized. Sure, it’s not like before (order today, arrive tomorrow), but if you plan smartly, you can usually get your materials on time. It’s no surprise anymore that if I need insulation for a house in four weeks, it will work out.

What can you tell me about this? Is the delivery situation still as bad out there?

Best regards
X
xMisterDx
19 Oct 2022 12:53
kati1337 schrieb:

(...)
I wouldn’t just accept a blanket statement like “everything takes 6 months longer because of material shortages.” They should be able to explain what’s going on.

By the way, how are you paying them? It can’t be in the company’s interest to not receive their payments for such a long time. Is it different with prefabricated houses since they have less upfront costs?

They can’t, and they don’t have to. The 6 months is a rough estimate because even the most experienced procurement specialists don’t know how the situation will develop over the next 2-3 months. A severe COVID wave in China or a gas shortage in Europe could make the 6-month estimate obsolete, and then we’re quickly talking about 2024.

PS:
I wish it were different, but your assessments here aren’t accurate. No one can currently provide a reliable forecast months in advance. Materials will arrive when they arrive. That’s how it is at the moment.
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Myrna_Loy
19 Oct 2022 12:56
xMisterDx schrieb:

They can’t and don’t have to. The 6 months is a rough estimate because even the most highly experienced buyers don’t know how the situation will develop over the next 2-3 months. A severe COVID-19 wave in China or a gas shortage in Europe would make the 6 months irrelevant, and then we’d quickly be talking about 2024.

I think we can save ourselves further comments. Homeowners just want to hear that they are victims of an incompetent house provider who is deliberately delaying construction to make more money. Because it works for others, after all.
To start building in 2022 and expect everything to be completed in under a year is almost a denial of reality.
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xMisterDx
19 Oct 2022 13:01
This is unfortunately also due to the fact that most homeowners nowadays come from industries where they rarely have to deal with such matters.
That said, if I need an appointment with an ophthalmologist today for something that is not urgent, I can easily wait 3-4 months. It’s similar when it comes to courts.
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Myrna_Loy
19 Oct 2022 13:07
The problem is also that Kati’s experiences with a local general contractor in the province are simply too different to serve as an example of "everything runs smoothly" for buyers of prefabricated houses. Smaller companies have completely different working conditions. They usually source their materials in smaller quantities from local building material suppliers and are not tied to suppliers and contracts that can only manage to produce and deliver large, consistent volumes. These are entirely different supply chains. This is like comparing apples to oranges.
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filosof
19 Oct 2022 13:10
Myrna_Loy schrieb:

I think we can save ourselves further comments. The homeowners just want to hear that they are victims of an incompetent house provider who is deliberately delaying construction to make more money. Because with others, it works fine.
How anyone in 2022 can start building and expect everything to be finished in less than a year is almost denial of reality.
xMisterDx schrieb:

Unfortunately, it is also due to the fact that most homeowners nowadays come from industries where they rarely encounter such issues.
Although, if I need a non-urgent eye doctor appointment today, I can easily wait 3-4 months. It’s a similar situation with courts.

One of the main reasons I chose a prefabricated house provider was, at least for me, the predictability and fixed timeline. I would also be disappointed if the schedule were suddenly pushed back by six months and would like to know the exact reason for this, or whether customers of other providers are facing the same problems, to better understand the situation.
As you already say, there can be various causes in the current situation that the construction company has no control over. But it could also be that they messed up, right?
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xMisterDx
19 Oct 2022 13:11
It may or may not be the case. The small contractor might have connections that allow them to quickly source some stock here and there.

However, the longer such a crisis lasts, the greater the advantage for large companies. Simply because they can endure longer and exert much more pressure on suppliers. If a nationwide general contractor in Germany tells Vaillant, "Either we get our materials first, or we’ll start looking at Buderus soon," then Vaillant is unlikely to prioritize smaller tradespeople.