ᐅ Basement or Slab Foundation – Who Bears the Additional Costs?

Hello,

I am new here and have a question I hope someone can help me with.

We signed a construction contract with a builder for an end townhouse in a row of three. We clearly stated from the beginning that we definitely wanted a basement. The saleswoman discouraged us from including the basement, explaining that the basement would have to be built as a waterproof concrete shell ("white tank") and would cost around 65,000 euros (about 70,000 USD), since the neighboring house (which at that time hadn’t been sold yet) was being built without a basement. With a basement, the middle house would be too expensive and she wouldn’t be able to sell it. However, if all the houses had a basement, then each basement would cost 38,000 euros (about 41,000 USD).

Now my question is: Is it correct that I have to bear the additional cost if my neighbor doesn’t include a basement? We have now learned that the same developer is building another house in our neighborhood, but the basement was built by a different company for 19,000 euros (about 21,000 USD). Can I rely on that and have the basement constructed by the other company as well?

I contacted our builder by email yesterday, but they just brushes us off, saying we planned without a basement and that’s that.

Best regards,
KathiL

Hello KathiL,

If the contracts are already signed, it will be very, very difficult for you to get a basement added. It is crucial that you act PROMPTLY now if the contracts are already finalized. This might even be something for a lawyer, depending on how strongly you intend to insist on having a basement. It’s important to know what kind of construction company you are working with (property developer, general contractor?). If nothing has been contractually agreed upon yet, you could try the following:

You could have a basement built by another company. You would cover the additional costs for redesigns and extra work. You will be paying for the basement anyway, and any warranty for the basement will only come from the company that builds it. The tricky part comes if water later seeps in between the house and the basement. This could lead to a HUGE cascade of issues for the construction company. Depending on how far along you are, static calculations, building permits / planning permissions, drainage, supply lines, etc., might need to be redesigned and possibly re-tendered. Either way, YOU need to take action now and discuss this with your construction company. Ideally, arrange a dedicated meeting at their office. This gives you a better chance of getting things handled more or less “normally.”

The option to order “House with Basement” at this point will no longer work—your initiative is needed now.

A “white tank” (watertight concrete shell) for an end-terrace house for €19,000 could be possible, but I am very skeptical. I see something over €30,000 as more realistic. Of course, this varies greatly by region, and there are many kinds of “basements.” How do your future neighbors feel about a basement? United, you are usually stronger if needed...

A tip: You write, “We said right away that we definitely want to build with a basement” — unfortunately, that doesn’t really work in construction. Verbal agreements and understandings are worthless. What is written down is what counts. This probably applies to your foundation slab as well. You might try insisting that the other party honor their verbal commitments and at least discuss the topic with you concretely and seriously consider implementation. Always communicate directly with their managing director, not with clerks who are reluctant to handle extra work...

I hope this helps you as a first step.

Thank you for the quick response.

We had already informed the builder about the basement via email a few weeks ago, but their reply was that we could build a garden shed and that we already have two garages for storage space.

One more question: is it correct that I have to cover the costs of supporting the neighboring house if the neighbors do not have a basement? We were told that the basement would then cost 65,000 euros. By the way, the buyer of the middle house was told they cannot have a basement because we signed the house building contract first and did not want a basement under any circumstances. I already sent an email to the sales representative of the building company yesterday, but she is making excuses.

The building permit/planning permission has already been submitted. But I think this can still be changed for an additional cost, right?

So if two houses in a row of three really want a basement, then the chance of getting a basement hasn’t decreased.

So get on the phone and arrange a meeting with everyone involved (as soon as possible) to avoid further unnecessary delays.

This is certainly not a comfortable situation for your developer, but if it was agreed upon verbally, you should insist on it firmly and calmly point out that their sales misrepresentation has been exposed. There’s no point dwelling on it, but you can then demand that a house be built that you are satisfied with—after all, this is why you chose this company and not another. A little appeal to their pride might still be effective. Then it might be possible to discuss with the developer what kind of basement is ideal, who will handle the redesigns (for example, where to position the basement stairway, who will make these plans, what happens with utility lines, whether the utility room still makes sense in that spot of the house…), or whether they can provide a reasonable offer for the basement…

Costs will definitely be coming your way, and they won’t be insignificant. I hope your financing is flexible enough for this…

Best regards