ᐅ Is it still possible to negotiate the price with the general contractor?
Created on: 27 Aug 2021 18:21
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Bauen2022
Hello,
we are now close to finalizing the construction contract with our general contractor (GC). We are considering whether we should still negotiate the price. It should be mentioned that compared to other GCs with similar specs, this GC already offered the lowest price. The GC is giving us a fixed price guarantee for 12 months. Given the current situation, should we finalize the offer as soon as possible, or have you still tried asking for a discount? How did you proceed if you wanted to negotiate the price? Thank you very much!
we are now close to finalizing the construction contract with our general contractor (GC). We are considering whether we should still negotiate the price. It should be mentioned that compared to other GCs with similar specs, this GC already offered the lowest price. The GC is giving us a fixed price guarantee for 12 months. Given the current situation, should we finalize the offer as soon as possible, or have you still tried asking for a discount? How did you proceed if you wanted to negotiate the price? Thank you very much!
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HilfeHilfe28 Aug 2021 08:07hanse987 schrieb:
Personally, I wouldn’t try to cut costs but rather aim to get one or two upgrades included for free. Correct, whether it’s something in the bathroom or elsewhere. If you push for savings now and then want to make changes later, the general contractor will be in control.
We received a 4% discount from the seller, but it was conditional on not making any structural or energy regulation-related changes to our "standard house model." We are happy with the house, but there were moments when we regretted committing so firmly: for example, I would have liked to raise the attic floor or install the heat pump differently.
It is definitely true that you don’t get money for free; you make certain compromises. In our case, it meant having only one day for selections instead of two, and not being able to change the external house volume anymore.
It is definitely true that you don’t get money for free; you make certain compromises. In our case, it meant having only one day for selections instead of two, and not being able to change the external house volume anymore.
4% is already a significant amount, €12,000 (about $13,000) on €300,000 (about $325,000).
But…
But…
bauenmk2020 schrieb:What does a discount have to do with the selection process? 🙄
For us, it was: 1 day of selection instead of 2.
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hampshire28 Aug 2021 11:27Bauen2022 schrieb:
Should we finalize the offer as soon as possible given the current situation, or did you still ask for a discount? How did you proceed if you wanted to negotiate the price?Providing a crash course on successful negotiation in a forum is hardly possible. Of course, two parties can come closer together in a price negotiation. That is much more than simply asking for or demanding a discount. Since you are apparently inexperienced, the recommendation from @hanse987 to try to get upgrades or add-ons is probably the most effective way for you to gain added value.To explain: A discount always means a reduction in profit. An upgrade or add-on has a retail value for the customer and a production cost for the provider. If the builder gives you an upgrade worth €1000, it does not reduce their profit by that full amount, but only by their production costs. If you are somewhat familiar with the topic, you can especially benefit from upgrades or add-ons that usually have a very high margin for the builder – these are relatively cheap for them to provide, and you receive good value in return. This creates a win-win situation.