I would like to ask for your advice on whether I should sign a planning contract.
In short:
1. We have found a plot of land, but it still seems too expensive, and we are negotiating the price with the owner.
2. Only two-story houses plus one recessed floor are allowed to be built on the plot.
3. We don’t know yet if our budget will be sufficient for this plot.
4. We still want to negotiate the construction specification, especially the tile prices.
We talked to the construction company we trust, and they said it is possible within our budget. Now they want to hire an architect to put our ideas on paper, submit the plans to the municipality, and have the building permit / planning permission reviewed.
For this reason, the construction company wants us to sign a planning contract stating that we will pay €650 (about $700) for the architect and permit review. By doing so, the company would secure our commitment to them.
However, the above questions are still unresolved. Should I clarify these first? Especially negotiate the construction specification beforehand? Once we sign, doesn’t the construction company have the stronger position?
THANK YOU for your help!
In short:
1. We have found a plot of land, but it still seems too expensive, and we are negotiating the price with the owner.
2. Only two-story houses plus one recessed floor are allowed to be built on the plot.
3. We don’t know yet if our budget will be sufficient for this plot.
4. We still want to negotiate the construction specification, especially the tile prices.
We talked to the construction company we trust, and they said it is possible within our budget. Now they want to hire an architect to put our ideas on paper, submit the plans to the municipality, and have the building permit / planning permission reviewed.
For this reason, the construction company wants us to sign a planning contract stating that we will pay €650 (about $700) for the architect and permit review. By doing so, the company would secure our commitment to them.
However, the above questions are still unresolved. Should I clarify these first? Especially negotiate the construction specification beforehand? Once we sign, doesn’t the construction company have the stronger position?
THANK YOU for your help!
Hello Pohnsa,
If I understood you correctly, you want to know whether it is possible to build the house you envision on the plot of land. The second question seems to be how much this house will cost.
Why not find an architect or structural engineer yourselves who can put your wishes on paper? They can also tell you in advance, based on the zoning plan, what is possible on the property and what is not. If necessary, they can submit a preliminary building inquiry—this is what it’s called—to the responsible building authority of the municipality.
Who will supervise the construction company later? Perhaps the architect who was commissioned by that company? Whose side do you think they will take if any disputes arise?
An architect or structural engineer hired directly by you is solely obligated to you as the client, similar to your lawyer or accountant. This architect or engineer can also provide more precise information about construction costs and whether your budget will be sufficient. If not, they can advise you on where savings might be possible, perhaps through your own work.
They can also handle the tendering of individual trades later, and together with you decide which company receives which contract based on their offer. They are also familiar with the legally correct wording in contractor agreements, so you won’t get caught out.
So my advice is to think carefully before signing the wrong documents.
If I understood you correctly, you want to know whether it is possible to build the house you envision on the plot of land. The second question seems to be how much this house will cost.
Why not find an architect or structural engineer yourselves who can put your wishes on paper? They can also tell you in advance, based on the zoning plan, what is possible on the property and what is not. If necessary, they can submit a preliminary building inquiry—this is what it’s called—to the responsible building authority of the municipality.
Who will supervise the construction company later? Perhaps the architect who was commissioned by that company? Whose side do you think they will take if any disputes arise?
An architect or structural engineer hired directly by you is solely obligated to you as the client, similar to your lawyer or accountant. This architect or engineer can also provide more precise information about construction costs and whether your budget will be sufficient. If not, they can advise you on where savings might be possible, perhaps through your own work.
They can also handle the tendering of individual trades later, and together with you decide which company receives which contract based on their offer. They are also familiar with the legally correct wording in contractor agreements, so you won’t get caught out.
So my advice is to think carefully before signing the wrong documents.
That’s exactly what I mean.
We don’t want to commit to a builder who can’t build our dream house on our desired plot of land within our maximum budget.
We would only want to engage with a construction company.
Besides, details like the scope of work and additional costs have not been finalized.
That’s why we’d rather stay away from it!
We don’t want to commit to a builder who can’t build our dream house on our desired plot of land within our maximum budget.
We would only want to engage with a construction company.
Besides, details like the scope of work and additional costs have not been finalized.
That’s why we’d rather stay away from it!
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