ᐅ Advance payment for the window installment (or window payment)
Created on: 7 Jun 2023 16:54
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Bayernbors
Hello everyone
Our general contractor informed us that the window manufacturer is offering a discount and wants to pass it on to us. This discount only applies to orders confirmed and paid for before the end of this month.
We are still far from the stage of window installation (we are just starting).
What risks are associated with making an early payment for the windows before they are actually installed in our house? Are there any ways to mitigate these risks?
Thank you very much
Best regards
Our general contractor informed us that the window manufacturer is offering a discount and wants to pass it on to us. This discount only applies to orders confirmed and paid for before the end of this month.
We are still far from the stage of window installation (we are just starting).
What risks are associated with making an early payment for the windows before they are actually installed in our house? Are there any ways to mitigate these risks?
Thank you very much
Best regards
kati1337 schrieb:
This is how our general contractor (GC) explained it to us, just like @11ant described here. He said the payment for this had to go proforma through him, but he would pass it 1:1 on to his electrician (which is basically none of my business), because we have the construction contract with him, not with the electrician. Basically, if I pay the electrician for 20 extra sockets and one of them breaks, the electrician can say "that was from the GC," and vice versa?
He actually said this was for warranty reasons and because we are his customers with the house. It’s actually the other way around: if the GC had outsourced the work, in the event of a claim his lawyer would likely advise him that he can calmly declare himself not responsible. The electrical trade would have either been excluded from the GC’s scope of work or would be considered tacitly accepted once you allowed your tradesperson access to their work. It does not matter if it is the same person. What counts is whether they act as an agent of the GC or as an independent contractor. For the electrician, this would mean they would provide warranty directly to you for ALL sockets. The keyword “upstream trade” has already come up multiple times in threads about self-procured washbasins.
kati1337 schrieb:
It was different with the photovoltaic system. We commissioned that afterwards directly with the electrician; it is not mentioned in the house contract, and the electrician bills me directly for it. However, I made sure that the GC is informed and okay with them installing a photovoltaic system on “his” house. We have not accepted it yet. Legally, it's not really different, although in this special case it is easier to clearly separate responsibilities. But even here, the roofer (or the GC regarding roofing) could construct a tacit acceptance.
HoisleBauer22 schrieb:
Because “my” tradesperson has been a longtime partner of Heinz von Heiden, they work well together and there should be no problems. Since Heinz von Heiden allows these additions, they still bear a certain responsibility and owe me a flawless overall building. It could be different with external tradespeople who have nothing to do with Heinz von Heiden. But even then, the Heinz von Heiden site manager can support and act as a mediator. One just has to be optimistic. Please do not encourage potentially naive readers with such unfounded optimism. The GC only owes you the overall project to the extent that you have not reduced their scope of work. Conversely, you may owe them profits from trades you awarded with their tacit approval. The identity of the third party does not fundamentally change this as I have said many times already. How often do I need to remind that an average private homebuilder is never on equal footing with the legal departments of the big companies?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Bayernbors schrieb:
Yes, we asked the general contractor to provide a guarantee specifically for this early payment, but they are not willing to do so. From their perspective, this was just a goodwill offer that could be accepted or declined. That would also be completely unreasonable: a completion guarantee is intended to secure the completion of the entire project by the general contractor, and the general contractor is not responsible for guarantees related to their subcontractors or suppliers.
How far along are you currently from the windows: foundation grounding, ring beam, ...?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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Bayernbors12 Jun 2023 15:2311ant schrieb:
That would also be complete nonsense: a completion guarantee serves to secure the completion of the entire project by the general contractor. The general contractor is in no way responsible for Hermes guarantees concerning their subcontractors. I have not applied for a completion guarantee. I understood this statement to mean that it is only possible to obtain a warranty for this advance payment.
Ytong2023 schrieb:
An advance payment can certainly be made to secure a discount. However, this should only be done with an unconditional bank guarantee. If the manufacturer or the general contractor goes bankrupt, which can happen very quickly, the bank is liable. If a bank guarantee is refused, something is suspicious. 11ant schrieb:
How far away from the windows are you currently: foundation earth electrode, ring beam, and so on? We are still in the demolition and earthworks phase. It will take several more months until the shell construction is finished and the windows are ordered.