Hello everyone,
we are considering changing the general contractor. The bank has already approved this. My question is, what might be disadvantages of switching? Where could potential pitfalls lie? I’m simply hoping for your experiences so we don’t overlook anything important...
Background:
We signed the contract with the general contractor in August ’16, and in December received the completed applications for the building permit, which was granted in January ’17. We informed the contractor in December ’16 that we wanted to start as soon as the weather allowed at the beginning of ’17, which they confirmed. There is no contractually fixed deadline since, due to the planned owner-occupied work (electrical, garage, and floor work on the upper floor), the contractor did not want to commit to a schedule. Since then, communication with our contractor has not been satisfactory:
Our site manager was reportedly only informed at the end of January that he was to oversee our build and has appeared unprepared at every conversation so far. (For example, in every meeting, he has asked whether we were doing any owner-occupied work or not.) He overlooks small traps I include in our correspondence.
When some of our neighbors started in the second calendar week of February, we were still chasing our site manager to find out when work would finally begin. He tried to reassure us by saying he first needed to find a construction company. I replied that this should have been done back in December, when it was already clear that the building permit would be issued in winter (the typical processing time in our area is four weeks, which was also the case here).
It dragged on until mid-March before a construction company was even found (after, reportedly, another company unexpectedly withdrew a week before the planned start date). This company then took a total of three weeks to complete the foundation slab (on a flat, shallowly excavated lot without a basement). For our neighbors, this process mostly took less than a week. “Our” workers averaged two days per week on-site, while others had workers present daily.
Since then, there has been radio silence from the construction company. I have not been able to reach the foreman for over two weeks. He does not answer calls, voicemails, or emails. Our contractor’s site manager keeps promising at short intervals that work will continue—of course, without it actually happening. Several of our neighbors, for example, are receiving their floor slabs this week….
Therefore, we have now started talks with our bank and other companies who could take over the construction for us. I have already informed our current contractor and asked him to consider a contract termination. (So far, we have paid the contractor 2% for architect services and 10% for the “foundation slab” construction phase. A penalty for contract termination would be 10% of the contract sum, although I do not consider this justified given the significant construction delays.)
we are considering changing the general contractor. The bank has already approved this. My question is, what might be disadvantages of switching? Where could potential pitfalls lie? I’m simply hoping for your experiences so we don’t overlook anything important...
Background:
We signed the contract with the general contractor in August ’16, and in December received the completed applications for the building permit, which was granted in January ’17. We informed the contractor in December ’16 that we wanted to start as soon as the weather allowed at the beginning of ’17, which they confirmed. There is no contractually fixed deadline since, due to the planned owner-occupied work (electrical, garage, and floor work on the upper floor), the contractor did not want to commit to a schedule. Since then, communication with our contractor has not been satisfactory:
Our site manager was reportedly only informed at the end of January that he was to oversee our build and has appeared unprepared at every conversation so far. (For example, in every meeting, he has asked whether we were doing any owner-occupied work or not.) He overlooks small traps I include in our correspondence.
When some of our neighbors started in the second calendar week of February, we were still chasing our site manager to find out when work would finally begin. He tried to reassure us by saying he first needed to find a construction company. I replied that this should have been done back in December, when it was already clear that the building permit would be issued in winter (the typical processing time in our area is four weeks, which was also the case here).
It dragged on until mid-March before a construction company was even found (after, reportedly, another company unexpectedly withdrew a week before the planned start date). This company then took a total of three weeks to complete the foundation slab (on a flat, shallowly excavated lot without a basement). For our neighbors, this process mostly took less than a week. “Our” workers averaged two days per week on-site, while others had workers present daily.
Since then, there has been radio silence from the construction company. I have not been able to reach the foreman for over two weeks. He does not answer calls, voicemails, or emails. Our contractor’s site manager keeps promising at short intervals that work will continue—of course, without it actually happening. Several of our neighbors, for example, are receiving their floor slabs this week….
Therefore, we have now started talks with our bank and other companies who could take over the construction for us. I have already informed our current contractor and asked him to consider a contract termination. (So far, we have paid the contractor 2% for architect services and 10% for the “foundation slab” construction phase. A penalty for contract termination would be 10% of the contract sum, although I do not consider this justified given the significant construction delays.)
jeti79 schrieb:
The company employs an architect who created and commissioned the house plans as well as the structural engineering. We have already paid them, with a discount of 2.38% on the total amount, and have received the plans.This does not automatically mean that the right to continue building with someone else has been acquired.
jeti79 schrieb:
As mentioned at the beginning: We have not made the decision to change the general contractor, but the idea is on our minds and we welcome input from those who may have already gone through this process and/or can offer us advice. If we do decide to take this step, a lawyer will, of course, be our only option,Lawyers can also act as mediators; contentious legal proceedings can last longer than construction delays.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
B
Bieber081527 Apr 2017 23:0011ant schrieb:
That does not mean that the right to continue building has been acquired with someone else. To be more precise: It is his property; he only needs permission from the authorities, i.e., a building permit/planning permission, to build. The question is whether he would be allowed to use the paid plans elsewhere (probably not; detailed advice should be sought from a trusted specialist lawyer after reviewing the contract).
The costs are another matter altogether.
Bieber0815 schrieb:
More precisely: it is his plot of land, he only needs permission from the authorities, i.e., a building permit/planning permission, to start construction. The question is whether he is allowed to use the paid plans elsewhereThat’s what I meant: the “license” to use the plans. Because once the foundation slab is already in place, it makes sense to keep the house design.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
C
Caspar202028 Apr 2017 08:45Bieber0815 schrieb:
The question is whether he is allowed to use the paid plans elsewhere (probably not; for detailed information, consult a specialized attorney after reviewing the contract).The permission to use the existing plans is one thing.
But it should not be forgotten that the approval or planning permission phase is still quite a way from the construction or detailed design phase.