Hello everyone,
We are currently reviewing whether to make any changes to the standard floor plan from our home builder for our end-of-terrace house. There are stricter guidelines that I’m already sure will disappoint some forum members. Roughly, we’ve been told that exterior walls and the façade, including windows and exterior doors, cannot be altered, and load-bearing walls cannot be moved. This mainly concerns the staircase and stair wall. Most other interior walls, as far as we know, are movable. In principle, we could also move in with the unmodified standard layout, but we do see 1-2 points with potential for improvement (though maybe in the end this just fuels the Spec House Building - Small Changes, Unintended Consequences thread).
I will still fill out the questionnaire, even though most of it cannot be changed for us (in particular Section 1 on the development plan is more the home builder’s area).
Development Plan / Restrictions
Plot size – 207 m² (2,230 sq ft)
Slope – slight incline, I don’t have exact survey data, but we can’t change anything at the house entrances anyway.
Site coverage ratio – 0.4
Floor area ratio – 0.8
Building envelope, building line, and setback – not relevant since we cannot change the external shell
Edge development – not relevant since we cannot change the external shell
Number of parking spaces (already included) – garage plus parking space in front
Number of storeys – 2
Roof type – gable roof
Architectural style –
Orientation – north/south
Maximum heights / limits – not relevant
Other conditions: Hornbeam hedge along the cul-de-sac on our property (on the west side; in the floor plans it appears on the right because they are not north-oriented)
Homeowners’ Requirements
Architectural style, roof type, building type: fixed by the home builder
Basement, floors: usable basement + 2 full stories + converted attic (already determined by the builder)
Number of occupants, ages: currently 2 (31 and 32); planning for 1-2 children
Space needs on ground and upper floors:
Office: family use or home office? Home office, both partly working remotely. Ideally, a separate space for each would be great, but if that’s not possible with potentially 2 children, it’s manageable.
Guest bedrooms per year: about 3-4 times a year
Open or closed layout: medium? Open transition between kitchen and living area is a must, but overall, some walls are okay.
Conservative or modern building style: –
Open kitchen, kitchen island: tends to “not fully closed” (see above), but we don’t necessarily need an island if something else is more practical or cost-effective.
Number of dining seats: for 4 people
Fireplace: no
Music / stereo wall: no
Balcony / roof terrace: no
Garage / carport: garage included
Utility garden / greenhouse: no (maybe a small bed later we’d do ourselves)
Additional wishes / special features / daily routine, also reasons why certain things should or shouldn’t be included:
We are both partly working remotely. Currently, we have an office and a desk in the living room. If possible, I’d prefer not to keep working in the living room. If two adults move in, it’s absolutely no problem; with one child it’s probably still fine, with two children… well, by then things might have changed anyway. I feel we’ll find a solution, and if someone locks themselves away in the 4 m² (43 sq ft) closet on the first floor (where the walls are still adjustable) or gets a desk in the bedroom, that might work.
House Design
Surroundings: To the south are garages for neighboring terrace houses, then a turning area (end of the cul-de-sac), followed by some individual trees and other detached houses. To the east is our block. Then a few small trees and a railway line (several meters lower). To the west, on our property, there is a city-required hornbeam hedge. We will try to negotiate a passage to the street (for bikes and so on). Since the second escape route on the ground floor is via the terrace, I see some chances, but city officials aren’t always easy.
Planning by:
- Home builder
What do you like especially? Why?
- I see the plan working for us both if the family plan doesn’t happen (then it’s very generous) and with 1-2 children as well.
What don’t you like? Why?
- Ground floor: (main pain point) Entrance is relatively narrow with little cloakroom space. The peninsula kitchen feels too small to work well (and probably requires an expensive extractor in the peninsula). The distance from the sofa to the TV is huge. The basement access is in the living room. We’ll probably manage some kind of furnishing on the ground floor, but right now it doesn’t exactly feel “yes, this is perfect.”
- Upper floor: We’ve debated whether to enlarge the 4 m² (43 sq ft) closet slightly to potentially use it later as an overflow office, but actually we find it as planned not bad at all (and initially more practical).
- Attic: The “landing” could be another possible office space if children come; we considered whether to separate it right away with a wall and door or leave it as shown.
So actually: except for the ground floor, we are quite satisfied; everything else is in the range of “if we want the jack-of-all-trades, maybe some changes could be made – or we keep it as is and see if the need arises.”
If you had to give up something, which details/extensions:
- We can give up: changes to the upper floor and attic
- We cannot give up: at least 1 office
Why is the design as it is now? e.g.
Standard plan from the home builder
What do you think makes it particularly good or bad?
I think it’s a solid floor plan for young families, but the ground floor worries me a bit. I feel maybe a different staircase shape would have helped, but as far as I’ve been told, that cannot be changed.
What is the most important/basic question about the floor plan in 130 characters?
How do we best arrange the ground floor? Should we still make some changes here?
Ideas for potential changes to the ground floor
Maybe reduce the kitchen size and straighten the hallway wall? (We’ve discussed this idea in the kitchen forum but haven’t talked to the planner yet.) The scale is off here (I think my cabinets are too large). The rough structural width in the kitchen at the narrowest point is 248 cm (98 inches), so roughly 240 cm (94 inches) minus about 130 cm (51 inches) for both kitchen sides would leave 110 cm (43 inches) aisle width. Also, the window would be moved to the corner. In return, there would be more cloakroom space in the hallway. Bad idea? Opinions?
Another question is a bit… can we reduce the distance between sofa and TV? I’ve just sketched in our current furniture; it would look roughly like this (sofa 275 x 220 cm (108 x 87 inches)).
Ideas so far include putting a shelf behind the sofa (but that blocks the terrace door more). Any other ideas?
Best regards
We are currently reviewing whether to make any changes to the standard floor plan from our home builder for our end-of-terrace house. There are stricter guidelines that I’m already sure will disappoint some forum members. Roughly, we’ve been told that exterior walls and the façade, including windows and exterior doors, cannot be altered, and load-bearing walls cannot be moved. This mainly concerns the staircase and stair wall. Most other interior walls, as far as we know, are movable. In principle, we could also move in with the unmodified standard layout, but we do see 1-2 points with potential for improvement (though maybe in the end this just fuels the Spec House Building - Small Changes, Unintended Consequences thread).
I will still fill out the questionnaire, even though most of it cannot be changed for us (in particular Section 1 on the development plan is more the home builder’s area).
Development Plan / Restrictions
Plot size – 207 m² (2,230 sq ft)
Slope – slight incline, I don’t have exact survey data, but we can’t change anything at the house entrances anyway.
Site coverage ratio – 0.4
Floor area ratio – 0.8
Building envelope, building line, and setback – not relevant since we cannot change the external shell
Edge development – not relevant since we cannot change the external shell
Number of parking spaces (already included) – garage plus parking space in front
Number of storeys – 2
Roof type – gable roof
Architectural style –
Orientation – north/south
Maximum heights / limits – not relevant
Other conditions: Hornbeam hedge along the cul-de-sac on our property (on the west side; in the floor plans it appears on the right because they are not north-oriented)
Homeowners’ Requirements
Architectural style, roof type, building type: fixed by the home builder
Basement, floors: usable basement + 2 full stories + converted attic (already determined by the builder)
Number of occupants, ages: currently 2 (31 and 32); planning for 1-2 children
Space needs on ground and upper floors:
Office: family use or home office? Home office, both partly working remotely. Ideally, a separate space for each would be great, but if that’s not possible with potentially 2 children, it’s manageable.
Guest bedrooms per year: about 3-4 times a year
Open or closed layout: medium? Open transition between kitchen and living area is a must, but overall, some walls are okay.
Conservative or modern building style: –
Open kitchen, kitchen island: tends to “not fully closed” (see above), but we don’t necessarily need an island if something else is more practical or cost-effective.
Number of dining seats: for 4 people
Fireplace: no
Music / stereo wall: no
Balcony / roof terrace: no
Garage / carport: garage included
Utility garden / greenhouse: no (maybe a small bed later we’d do ourselves)
Additional wishes / special features / daily routine, also reasons why certain things should or shouldn’t be included:
We are both partly working remotely. Currently, we have an office and a desk in the living room. If possible, I’d prefer not to keep working in the living room. If two adults move in, it’s absolutely no problem; with one child it’s probably still fine, with two children… well, by then things might have changed anyway. I feel we’ll find a solution, and if someone locks themselves away in the 4 m² (43 sq ft) closet on the first floor (where the walls are still adjustable) or gets a desk in the bedroom, that might work.
House Design
Surroundings: To the south are garages for neighboring terrace houses, then a turning area (end of the cul-de-sac), followed by some individual trees and other detached houses. To the east is our block. Then a few small trees and a railway line (several meters lower). To the west, on our property, there is a city-required hornbeam hedge. We will try to negotiate a passage to the street (for bikes and so on). Since the second escape route on the ground floor is via the terrace, I see some chances, but city officials aren’t always easy.
Planning by:
- Home builder
What do you like especially? Why?
- I see the plan working for us both if the family plan doesn’t happen (then it’s very generous) and with 1-2 children as well.
What don’t you like? Why?
- Ground floor: (main pain point) Entrance is relatively narrow with little cloakroom space. The peninsula kitchen feels too small to work well (and probably requires an expensive extractor in the peninsula). The distance from the sofa to the TV is huge. The basement access is in the living room. We’ll probably manage some kind of furnishing on the ground floor, but right now it doesn’t exactly feel “yes, this is perfect.”
- Upper floor: We’ve debated whether to enlarge the 4 m² (43 sq ft) closet slightly to potentially use it later as an overflow office, but actually we find it as planned not bad at all (and initially more practical).
- Attic: The “landing” could be another possible office space if children come; we considered whether to separate it right away with a wall and door or leave it as shown.
So actually: except for the ground floor, we are quite satisfied; everything else is in the range of “if we want the jack-of-all-trades, maybe some changes could be made – or we keep it as is and see if the need arises.”
If you had to give up something, which details/extensions:
- We can give up: changes to the upper floor and attic
- We cannot give up: at least 1 office
Why is the design as it is now? e.g.
Standard plan from the home builder
What do you think makes it particularly good or bad?
I think it’s a solid floor plan for young families, but the ground floor worries me a bit. I feel maybe a different staircase shape would have helped, but as far as I’ve been told, that cannot be changed.
What is the most important/basic question about the floor plan in 130 characters?
How do we best arrange the ground floor? Should we still make some changes here?
Ideas for potential changes to the ground floor
Maybe reduce the kitchen size and straighten the hallway wall? (We’ve discussed this idea in the kitchen forum but haven’t talked to the planner yet.) The scale is off here (I think my cabinets are too large). The rough structural width in the kitchen at the narrowest point is 248 cm (98 inches), so roughly 240 cm (94 inches) minus about 130 cm (51 inches) for both kitchen sides would leave 110 cm (43 inches) aisle width. Also, the window would be moved to the corner. In return, there would be more cloakroom space in the hallway. Bad idea? Opinions?
Another question is a bit… can we reduce the distance between sofa and TV? I’ve just sketched in our current furniture; it would look roughly like this (sofa 275 x 220 cm (108 x 87 inches)).
Ideas so far include putting a shelf behind the sofa (but that blocks the terrace door more). Any other ideas?
Best regards
mayglow schrieb:
What? I don’t know anything about that. Oh, I’m pretty sure I’ve already explained that here at least seven and a half times.
mayglow schrieb:
Well, Google says that during such an application, all claims are frozen. So I assume that for the moment no subcontractors are being paid, and I’d be surprised if much happens then? And then you just hope that it’s actually self-administration and that the assessment is correct—that they really want to properly complete the project... (or alternatively, the insolvency administrator also sees that continuing it is a good idea because there’s a prospect of money coming in...) Regarding Google’s reliability on this matter, I think I’ve said enough by now that even lawyers—unless specialized in insolvency law—can find this challenging. A company that files its own insolvency petition obviously triggers concerns about possible insolvency, which leads to credit lines being cut by upstream suppliers and contractors. It can’t go smoothly without interruptions. But communication does take place, and the main banks of the subcontractors follow the process. According to today’s Rheinische Post—I’ve done some additional reading—a provisional administrator has already been appointed, so apparently self-administration was not requested (which in this case is probably the wiser choice). For your project, I don’t see any reason to lose sleep. The trouble seems to be with the Wallhöfe, a project that is, in my opinion, uncharacteristic for Tecklenburg. Of the 67 apartments there (all for rent), 15 are still available—which, based on a broad sample, are mostly the larger, less attractively laid-out units (pipe-head apartments with bowling-alley corridors and the like)—so quite a different category from the well-managed core business. Insolvency courts have no interest in palliative care or acting as undertakers. Where continuation is possible, it is Plan A. I don’t see any subcontractors disappearing, but you might celebrate Easter at Pentecost instead. You may live out of boxes for a few months because not everything will be move-in ready on the scheduled date. Your project is too advanced to warrant serious concerns. Nothing—not even an insolvency administrator—will ruin it now.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
11ant schrieb:
Oh, I’m sure I’ve mentioned that here at least seven and a half times already.Yes, that's true. It’s just that for a moment I was thinking about our project. Not quite with it today 😉About four weeks into insolvency now, and I thought I’d give an update, even though there’s not much new to report... I had previously looked for any information on other insolvencies and typical timelines to expect, but didn’t really find much. So maybe it makes sense to provide occasional updates about how things are going for us. I guess every insolvency case is a bit different, but oh well.
Before the insolvency filing: When I read online, a lot is said about how problems often show up well in advance – like work stopping on the construction site or similar signs. For us, that definitely wasn’t the case. Sure, it was a bit quieter over Christmas, and for example, the neighbors in the semi-detached house were a little worried because their screed was delayed. But overall, in December and January right up to the insolvency filing, work was going on normally at our site. In fact, just in the days before insolvency there was quite a lot of activity. The tiling in the show home was completed, and they were supposed to start with the other homes next (we actually have four rows of tiles waiting in one room…). Interior plaster was applied, painters were working in the show home, and we had meetings with the special requests department about possibly selecting different paint colors… so nothing indicating problems.
After the insolvency filing on January 10, there was panic all around. I’m not even sure how to organize this post. Basically, we first got a circular informing us about the insolvency. It stated that the intention is to continue all projects. Meanwhile, we saw all the subcontractors leaving the site, taking their stuff away, and although in the very first days there were still people on site, within a few days everything came to a standstill. Neighbors could still talk to a few subcontractors, and the mood is mostly terrible—especially for those who had issued invoices just before insolvency that weren’t paid (particularly those who had been working on the show home and were supposed to come to our house next—yay).
What’s happened on the site since then? Well, as far as we can tell, almost nothing. In the first days, there were concerns in our group about securing the site. This was during a period with heavy rain, and water in the basement had already been a problem sometimes (although a lot of work on the drainage system was carried out just before insolvency). The construction manager from Tecklenburg came by and locked up the houses and the gate. We actually ran into him and briefly spoke, but even then they didn’t really know what would happen next (they still wanted to connect a drainage pipe somewhere themselves). Since then, apparently someone ventilates the houses now and then (possibly daily—no idea, this is just what a future neighbor occasionally sees). Otherwise, it’s basically a standstill.
The first week: It soon became clear that we’d have to wait and see what the insolvency administrator plans. We have a very rough idea of how the initial phase of insolvency proceedings works (there’s a provisional insolvency administrator, and after a few months—don’t hold me to the exact time, maybe around three months—the official procedure begins). Our understanding is that all financial approvals must now go through the insolvency administrator. Press reports suggest the administrator is “optimistic” because “the corporate group is capable of continuing and completing all ongoing construction projects.” We started gathering more assessments (more on that later), but decided to wait a few days before contacting Tecklenburg or the insolvency administrator. I think we all learned a lot during this time but I can’t keep track of everything. For example, during insolvency, Tecklenburg’s salaries are paid by the authorities for three months (which might allow some financial leeway). There’s also the concept of the insolvency estate, and insolvency doesn’t necessarily mean the business has to shut down, etc.
Official information: On January 19, we received a letter (from the insolvency administrator, sent via Tecklenburg), which seemed mainly intended for the subcontractors. It repeated that “it is intended to complete all started construction projects,” and that the sender is already in talks with the financing banks. It mentions that the construction sites were being inventoried and that for future deliveries of materials, approval from the insolvency administrator would be required. It also stated that the official proceedings should begin on April 1, from when claims can be registered. We took this as a positive sign that work could continue with the insolvency administrator’s approval, if subcontractors agree to that. On January 21, we received a similar letter (with a slightly different focus), apparently really meant for us. It again confirmed the intention to finish all construction projects, mentioned ongoing bank discussions and an inventory and evaluation process which would take some time, and asked us to refrain from contacting the insolvency administrator directly due to the number of cases they handle, instead directing any questions to our Tecklenburg contacts.
Assessments: Initial assessments from people with more expertise (but not directly involved) weren’t all that negative. Yes, delays were expected. But there was even speculation that the insolvency administrator might try to finish our project before April 1, since it’s already quite far along (i.e., increasing the insolvency estate and reducing the number of parties involved in the process). Also, because the administrator may have more funds available now, thanks to savings from stopping payment of Tecklenburg’s salaries. And maybe the insolvency is mostly formal (“a payment is due in three weeks that can’t be met, so insolvency is filed, but money will come in four weeks”). Well, since still absolutely nothing has happened on site, that seems pretty unlikely. About “what actually happens to our contract”… basically, contracts remain valid unless the administrator decides otherwise. So, we can’t just go ahead and commission things ourselves (apart from the fact that accessing the site is almost impossible). Nor do we want to risk paying for things twice in the worst case. So, we remain in a holding pattern and wait to see what the administrator decides.
There were some opinions about what this means for the subcontractors. Many assumed “they probably know how to handle this,” meaning some insurance against losses may exist (and Creditreform’s rating of Tecklenburg before insolvency suggested this was possible… haha). Those insured wouldn’t suffer major losses. And from now on, the insolvency administrator’s approval is the best security subcontractors can get, meaning there’s little reason not to continue work. At least from one or two conversations, we gathered that not all subcontractors have much insolvency experience, so this might hit some of them harder.
Basically, after a while of hearing nothing, we followed up with Tecklenburg last week to ask if talks with subcontractors about approvals had started or if they could give any general update. It doesn’t sound like work will resume anytime soon... Talks between the banks and the insolvency administrator are ongoing (as the January 19 letter already said), “so that they can then approach our craftsmen.” Some contractors have shown willingness to enter talks, which will only deepen after the bank’s decision. (And then lots of apologies). I had hoped funds might be sufficient to allow parallel negotiations without everything coming to a halt, but that doesn’t sound likely at the moment. It seems the insolvency administrator is seeking a comprehensive solution through bank and investor discussions to enable work to continue everywhere.
So, what now? Well, same as before. We remain in waiting mode. We exchange information with neighbors. We’ve contacted the notary about some contract clauses to better understand them in the current context—let’s see if that leads to anything. Among other things, we’re trying to figure out what happens to contractual deadlines during insolvency and what rights we might have. We’re trying to understand what happens with warranties if the project is completed, and what options might be available. We’re also looking into what might happen if it’s decided not to continue our project (apparently there are options for splitting contracts so ownership can be transferred in the current state and so on). But based on all the information and assessments we’ve received so far, it seems unlikely for the project not to be completed, so that’s mostly “just in case” we want to understand it a bit. Of course, we worry that if work resumes eventually, it might be done in a sloppy way.
Sorry, this got quite long.
TL;DR: Since insolvency, construction site is at a standstill. Contracts remain valid for now. Projects are intended to continue. We are waiting to see what the insolvency administrator does, who is currently mostly conducting talks with banks and investors.
Before the insolvency filing: When I read online, a lot is said about how problems often show up well in advance – like work stopping on the construction site or similar signs. For us, that definitely wasn’t the case. Sure, it was a bit quieter over Christmas, and for example, the neighbors in the semi-detached house were a little worried because their screed was delayed. But overall, in December and January right up to the insolvency filing, work was going on normally at our site. In fact, just in the days before insolvency there was quite a lot of activity. The tiling in the show home was completed, and they were supposed to start with the other homes next (we actually have four rows of tiles waiting in one room…). Interior plaster was applied, painters were working in the show home, and we had meetings with the special requests department about possibly selecting different paint colors… so nothing indicating problems.
After the insolvency filing on January 10, there was panic all around. I’m not even sure how to organize this post. Basically, we first got a circular informing us about the insolvency. It stated that the intention is to continue all projects. Meanwhile, we saw all the subcontractors leaving the site, taking their stuff away, and although in the very first days there were still people on site, within a few days everything came to a standstill. Neighbors could still talk to a few subcontractors, and the mood is mostly terrible—especially for those who had issued invoices just before insolvency that weren’t paid (particularly those who had been working on the show home and were supposed to come to our house next—yay).
What’s happened on the site since then? Well, as far as we can tell, almost nothing. In the first days, there were concerns in our group about securing the site. This was during a period with heavy rain, and water in the basement had already been a problem sometimes (although a lot of work on the drainage system was carried out just before insolvency). The construction manager from Tecklenburg came by and locked up the houses and the gate. We actually ran into him and briefly spoke, but even then they didn’t really know what would happen next (they still wanted to connect a drainage pipe somewhere themselves). Since then, apparently someone ventilates the houses now and then (possibly daily—no idea, this is just what a future neighbor occasionally sees). Otherwise, it’s basically a standstill.
The first week: It soon became clear that we’d have to wait and see what the insolvency administrator plans. We have a very rough idea of how the initial phase of insolvency proceedings works (there’s a provisional insolvency administrator, and after a few months—don’t hold me to the exact time, maybe around three months—the official procedure begins). Our understanding is that all financial approvals must now go through the insolvency administrator. Press reports suggest the administrator is “optimistic” because “the corporate group is capable of continuing and completing all ongoing construction projects.” We started gathering more assessments (more on that later), but decided to wait a few days before contacting Tecklenburg or the insolvency administrator. I think we all learned a lot during this time but I can’t keep track of everything. For example, during insolvency, Tecklenburg’s salaries are paid by the authorities for three months (which might allow some financial leeway). There’s also the concept of the insolvency estate, and insolvency doesn’t necessarily mean the business has to shut down, etc.
Official information: On January 19, we received a letter (from the insolvency administrator, sent via Tecklenburg), which seemed mainly intended for the subcontractors. It repeated that “it is intended to complete all started construction projects,” and that the sender is already in talks with the financing banks. It mentions that the construction sites were being inventoried and that for future deliveries of materials, approval from the insolvency administrator would be required. It also stated that the official proceedings should begin on April 1, from when claims can be registered. We took this as a positive sign that work could continue with the insolvency administrator’s approval, if subcontractors agree to that. On January 21, we received a similar letter (with a slightly different focus), apparently really meant for us. It again confirmed the intention to finish all construction projects, mentioned ongoing bank discussions and an inventory and evaluation process which would take some time, and asked us to refrain from contacting the insolvency administrator directly due to the number of cases they handle, instead directing any questions to our Tecklenburg contacts.
Assessments: Initial assessments from people with more expertise (but not directly involved) weren’t all that negative. Yes, delays were expected. But there was even speculation that the insolvency administrator might try to finish our project before April 1, since it’s already quite far along (i.e., increasing the insolvency estate and reducing the number of parties involved in the process). Also, because the administrator may have more funds available now, thanks to savings from stopping payment of Tecklenburg’s salaries. And maybe the insolvency is mostly formal (“a payment is due in three weeks that can’t be met, so insolvency is filed, but money will come in four weeks”). Well, since still absolutely nothing has happened on site, that seems pretty unlikely. About “what actually happens to our contract”… basically, contracts remain valid unless the administrator decides otherwise. So, we can’t just go ahead and commission things ourselves (apart from the fact that accessing the site is almost impossible). Nor do we want to risk paying for things twice in the worst case. So, we remain in a holding pattern and wait to see what the administrator decides.
There were some opinions about what this means for the subcontractors. Many assumed “they probably know how to handle this,” meaning some insurance against losses may exist (and Creditreform’s rating of Tecklenburg before insolvency suggested this was possible… haha). Those insured wouldn’t suffer major losses. And from now on, the insolvency administrator’s approval is the best security subcontractors can get, meaning there’s little reason not to continue work. At least from one or two conversations, we gathered that not all subcontractors have much insolvency experience, so this might hit some of them harder.
Basically, after a while of hearing nothing, we followed up with Tecklenburg last week to ask if talks with subcontractors about approvals had started or if they could give any general update. It doesn’t sound like work will resume anytime soon... Talks between the banks and the insolvency administrator are ongoing (as the January 19 letter already said), “so that they can then approach our craftsmen.” Some contractors have shown willingness to enter talks, which will only deepen after the bank’s decision. (And then lots of apologies). I had hoped funds might be sufficient to allow parallel negotiations without everything coming to a halt, but that doesn’t sound likely at the moment. It seems the insolvency administrator is seeking a comprehensive solution through bank and investor discussions to enable work to continue everywhere.
So, what now? Well, same as before. We remain in waiting mode. We exchange information with neighbors. We’ve contacted the notary about some contract clauses to better understand them in the current context—let’s see if that leads to anything. Among other things, we’re trying to figure out what happens to contractual deadlines during insolvency and what rights we might have. We’re trying to understand what happens with warranties if the project is completed, and what options might be available. We’re also looking into what might happen if it’s decided not to continue our project (apparently there are options for splitting contracts so ownership can be transferred in the current state and so on). But based on all the information and assessments we’ve received so far, it seems unlikely for the project not to be completed, so that’s mostly “just in case” we want to understand it a bit. Of course, we worry that if work resumes eventually, it might be done in a sloppy way.
Sorry, this got quite long.
TL;DR: Since insolvency, construction site is at a standstill. Contracts remain valid for now. Projects are intended to continue. We are waiting to see what the insolvency administrator does, who is currently mostly conducting talks with banks and investors.
mayglow schrieb:
At the same time, we see that all the subcontractors are leaving the construction site, taking their equipment with them, and while in the very first days you could still see some workers there, within a few days everything on the site comes to a halt. Neighbors were still able to speak with a few subs, and the overall mood is mostly terrible (especially among those who invoiced shortly before the insolvency filing but haven’t been paid — specifically those who were advancing the show home and were actually next scheduled to work with us — yay). I already told you that subcontractors who are not yet subject to insolvency proceedings are very nervous, and with good reason, since concerns about their survival are neglected in insolvency law. They are deploying their time and manpower elsewhere as best they can and are collecting everything that “remains their property until fully paid.” It’s just normal self-preservation within legal bounds and nothing you need to worry about yourself.
mayglow schrieb:
(There is a provisional insolvency administrator, and within a few months (don’t hold me to it, probably around three) the "formal" procedure will be opened. Our understanding is that all financial approvals now have to go through the insolvency administrator.) Not three months. Tecklenburg is not a small firm, and with lawyers and tax advisors working intensively, they will provide all the information needed for a swift process. The insolvency trustee will get a comprehensive overview and, as the provisional administrator, will literally oversee the accounting, meaning an appropriate frequency (likely several times a week here) of reviewing and approving financial documents and payment releases.
mayglow schrieb:
It currently sounds to me like, as part of talks with banks and investors, the insolvency administrator is seeking an overall solution so that everything can continue moving forward. That will be the case. Being a qualified lawyer aware of his own liability risks, he will carefully weigh his words and, from an outsider’s perspective, “hedge” like a politician. As I said before, the main bottleneck here seems to be the question of when the fate of the Wallhöfe project can be disentangled from the overall situation. In my view, this is a critical issue for the business development, as it is an atypical project. Overall, I see this as a high-risk business category, also for other building contractors, general contractors, and land developers.
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https://www.linkedin.com/company/bauen-jetzt/
Very brief update: There is basically no new information. Initially, we were told there might be an update in week 10 (last week), then maybe this week. Well, so far nothing.
We are basically waiting for the insolvency proceedings to be officially opened. (It is rather unlikely that they will be dismissed due to lack of assets (-> assets being less than the procedure costs)). This is expected to happen on April 1st, at least that was the last information we received.
According to our lawyer, we can then request a decision from the insolvency administrator on whether they want to continue the contract or not. Essentially, the options are:
1. The contract is continued unchanged (aside from delays, nothing much will affect us -> possibly we could try to claim some damages for exceeding contractual deadlines, but that is speculative and how much you could get is uncertain)
2. The insolvency administrator decides not to complete the contract. Since we have a preliminary notice registered in the land register, the contract will then be split so that the ownership can be transferred to us and we can organize the completion ourselves. We still need to check the exact procedure in detail (it might also be that something will be settled based on the current condition’s value. However, if it turns out to be worth less than what we have already paid, it is doubtful whether we will ever recover anything. But somehow we could probably file a claim in the list of creditors)
3. The insolvency administrator allows us to choose, which may include options like continuing the contract with changes (e.g., at a higher price) or termination (i.e., option 2 above).
Meanwhile: waiting and keep calm.
We are basically waiting for the insolvency proceedings to be officially opened. (It is rather unlikely that they will be dismissed due to lack of assets (-> assets being less than the procedure costs)). This is expected to happen on April 1st, at least that was the last information we received.
According to our lawyer, we can then request a decision from the insolvency administrator on whether they want to continue the contract or not. Essentially, the options are:
1. The contract is continued unchanged (aside from delays, nothing much will affect us -> possibly we could try to claim some damages for exceeding contractual deadlines, but that is speculative and how much you could get is uncertain)
2. The insolvency administrator decides not to complete the contract. Since we have a preliminary notice registered in the land register, the contract will then be split so that the ownership can be transferred to us and we can organize the completion ourselves. We still need to check the exact procedure in detail (it might also be that something will be settled based on the current condition’s value. However, if it turns out to be worth less than what we have already paid, it is doubtful whether we will ever recover anything. But somehow we could probably file a claim in the list of creditors)
3. The insolvency administrator allows us to choose, which may include options like continuing the contract with changes (e.g., at a higher price) or termination (i.e., option 2 above).
Meanwhile: waiting and keep calm.
mayglow schrieb:
According to the lawyer, we can also request a decision from the insolvency administrator on whether they want to continue the contract or not. My Google search showed that although they are supposed to respond "without delay," they actually have time until after the "report meeting," which according to the Insolvency Code takes place at the earliest 6 weeks and at most 3 months after the insolvency is opened. Sigh. Patience is required. I still have a little hope for an earlier decision, but it is very slight.
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