ᐅ Conduct/Consequences Regarding the Construction Company

Created on: 17 Jul 2022 13:40
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Kathi92
We have the following problem and are really at a loss now:

We started building our house in June 2021 and hired a construction company as the general contractor to deliver the turnkey project up to the finishing stage. Everything went smoothly at first, but construction then stalled due to delivery difficulties with steel/reinforcement for the intermediate ceiling. Over the winter, very little progress was made (roof, windows, and completion of brickwork). By March, the shell was finished and the roof was on.

The big problem is that the construction company continues to work at a snail's pace, which we can no longer tolerate. It has taken them a full 4 months just to complete all installations (electrical, plumbing). By the end of June, these were finally finished. To explain: they brought in an electrician from the local area who, after his regular 40-hour job, worked only about 1-2 hours in the evenings at our site. Often, he didn’t feel like working after his day job because he also wants to go home at some point. So, it dragged on forever. We didn’t even know this but found out from neighbors. This is not what we understood as subcontracting, as originally discussed. And this has been the pattern throughout. We constantly call and visit; 1. we hardly see anyone working, and 2. we are repeatedly promised, “Next week we’ll speed up,” “Our house is the top priority,” or “On day X, the interior plaster or screed will be done.” But it never happens.

We have been building for 13 months now and still haven’t even reached the stage of rough floor completion.

Originally, according to the schedule from June 2021, completion was planned for May 2022, assuming no setbacks like lockdowns. We were aware of that but made it clear at contract signing that we needed to move in by this summer at the latest (August 2022). They assured us this would work. Then they shifted to summer or June/July (due to material delivery issues).

In May, we approached them because it was already clear to us that finishing in June/July was impossible at their pace. We explained our situation: we absolutely must move in by the end of August. They said they would finish by the end of August, that they were now working continuously. We were promised drying equipment for the screed to catch up, all electricity costs covered as a goodwill gesture, and that screed and interior plaster would be done by the end of May. Then, we went on a two-week vacation in early June and came back shocked. We went to the house and nothing had happened. Zero progress. Just last week, we finally got the interior plaster. No sign of underfloor heating or screed. And the house is supposed to be handed over turnkey in about 6 weeks?

I can no longer listen to their stories and empty promises. Especially since we have an 18-month-old toddler and I am currently 5 months pregnant. So just staying in a hotel or with friends/family isn’t easy in this situation (and who pays for that?). The kitchen planner also refuses to take measurements without the screed, so we will be without a kitchen for weeks. A great situation with a child and baby. Our relationship is also suffering massively. This is the biggest source of conflict. It’s all a nightmare.

I already wanted to go to a lawyer, but what good would that do now if they can’t finish? The harshest letter won’t change anything. I can’t even count how many times we call and visit. It’s always the same empty talk. We didn’t agree on any contractual penalties due to Covid lockdowns since they couldn’t influence the construction then.

I am considering proposing that they complete the rough floor stage (screed) and then we finish the house ourselves with professional tradespeople. I think we would be much faster than them. Does anyone know what else we can do?

Thanks for reading!
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Myrna_Loy
17 Jul 2022 20:06
hauskauf1987 schrieb:

That’s how it is
You have no legal recourse
Well, I would leave that assessment to a specialist lawyer.
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Neubau2022
17 Jul 2022 20:08
Kathi92 schrieb:

Thank you for your reply!

I don’t quite see it the same way. Especially since verbal side agreements (“all the talk around it”) can indeed be legally binding, particularly because we have not agreed on a requirement for written form. Why would I voluntarily sign the contract with the clause if then I have no place to stay for four months? At signing, it was said that it absolutely MUST be completed by summer. That was the agreement, including the signed building plan.

We will contact a lawyer tomorrow and have a formal letter drafted. Maybe that will have an effect.

Only what is in writing counts. What the general contractor (GC) promised or assured informally won’t hold up in court. And an apartment delivered within the usual construction period (until 12/2022) is not your construction project, nor the GC’s responsibility.

In our case, the construction deadline guarantee will probably not be met due to the geothermal heat pump. However, I would never take legal action against the GC because I am satisfied that he kept to the agreed prices and didn’t just add 10% on top. He certainly could have done that in today’s market...
i_b_n_a_n17 Jul 2022 20:09
Kathi92 schrieb:

Thank you for your response!

I don’t quite see it the same way. Especially since verbal side agreements (“all the talk around it”) can indeed be legally valid, particularly as we haven’t agreed on a written form requirement. Why would I voluntarily sign the contract with that clause if I then have no place to stay for 4 months? At the time of signing, it was clearly stated that it MUST be finished by summer at the latest. That was agreed upon, along with the signed building plan.

We will contact a lawyer tomorrow and have a formal letter drafted. Maybe that will have an effect.

“If you want peace, prepare for war.” I don’t always follow that myself—I haven’t learned everything yet. I’m more of an optimist (some might say “naive”). In your case, contracts with penalty clauses would have been a good idea. The following also applies to me! I’m always amazed at how recklessly and trusting people act when making what is usually the most expensive decision of their lives. By the way, I’m not the first person to write this sentence here in the forum.
Unfortunately, side agreements made verbally first have to be proven. In court, after years of waiting for a hearing date following a failed amicable settlement attempt, you often end up with a compromise where both parties lose and the third party (lawyers) wins.

So, sorry, really a tough situation for you. Get help and make sure the set deadline (12.22) is met by applying “friendly” pressure (through professionals, not by sending emails or making calls yourselves!). From my own bitter experience, I can say: those are absolutely ineffective, definitely!
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SoL
17 Jul 2022 20:10
Kathi92 schrieb:

Thank you for your response!

I don’t quite see it the same way. Especially since verbal side agreements (“all the talk around it”) can indeed be legally binding, especially as we did not specify a written form requirement. Why would I voluntarily sign the contract with this clause if I then have nowhere to stay for four months? At the time of signing, it was clearly stated that it MUST be finished by summer at the latest. That was agreed upon, along with the signed building plan.

Tomorrow we will contact a lawyer and have a formal letter drafted. Maybe that will have an effect.

Check the contract clauses: does it perhaps state that no verbal side agreements, etc., were made?
That was definitely included in our contract.
mayglow17 Jul 2022 20:21
I would also have a specialized lawyer review this. Apart from that, prepare for the possibility that it might not be finished by the end of August. This means looking into where you can store your current furniture and finding a temporary housing solution. Ideally, everything will be completed on time and you won’t need these arrangements, but then you won’t have to rush to find a quick or last-minute solution if it does turn out that way. The next best case would probably be that the construction company covers your additional costs (though, as a complete layperson, I guess they might not be obligated to do so before 12/22 – but someone with expertise should be able to give you a better assessment).
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Bertram100
17 Jul 2022 20:30
I wouldn’t do anything except send a (reasonably) polite inquiry. December 2022 is only 6 months away. And if basically only the shell of the building is up now, how much faster could it really go? The company would have to plan that extra carefully anyway. An old saying: fast and good rarely happen at the same time. Prepare yourself for an interim move. It’s inconvenient, but there are worse things.