ᐅ Construction Contract Additional Costs for Foundation Reinforcement?
Created on: 11 Nov 2019 09:51
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phill1.Hello, we are currently building a new house with a construction company, with the building permit / planning permission, drawings, structural engineering, and energy certification included in the contract. BEFORE signing the contract, I sent them an email asking them to please check the plot, attaching a soil report.
After completing the foundation slab, they informed me that the slab needs to be thicker. I then received the following via email:
"
We assumed the soil conditions were normal before signing the contract, but after inspections by our structural engineer, it turned out that poor soil conditions exist.
Due to the poor conditions, the foundations need to be reinforced and the slab thickness increased from 18cm (7 inches) to 30cm (12 inches).
Unfortunately, this will result in additional costs of €5,600.00 including VAT. We ask you to confirm this.
The additional cost breakdown now shows 5600 + 19% VAT....
In my construction contract it states:
“Foundations and slab”
Concrete and dimensions according to structural engineering calculations. The slab is a concrete slab with appropriate insulation, complying with technical regulations. The foundation is formed with strip footings made from C20/C25 concrete according to the requirements of the structural design. A galvanized steel strip for foundation grounding is embedded in the foundations. According to the structural design, a concrete slab is poured on a compacted sand fill on top of an underlying construction foil.
Further in the contract, it states that the Client (owner of the plot, i.e. myself) also bears all applicable fees, e.g., shell inspection, building inspection, chimney sweep, as well as additional costs arising during construction for structural engineering, architect, etc.
Now the question is: are these additional costs justified? Am I required to pay them? This should have been identified by them or the architect before signing the contract.
The contract does not mention an 18cm (7 inches) slab thickness anywhere...
Thank you.
After completing the foundation slab, they informed me that the slab needs to be thicker. I then received the following via email:
"
We assumed the soil conditions were normal before signing the contract, but after inspections by our structural engineer, it turned out that poor soil conditions exist.
Due to the poor conditions, the foundations need to be reinforced and the slab thickness increased from 18cm (7 inches) to 30cm (12 inches).
Unfortunately, this will result in additional costs of €5,600.00 including VAT. We ask you to confirm this.
The additional cost breakdown now shows 5600 + 19% VAT....
In my construction contract it states:
“Foundations and slab”
Concrete and dimensions according to structural engineering calculations. The slab is a concrete slab with appropriate insulation, complying with technical regulations. The foundation is formed with strip footings made from C20/C25 concrete according to the requirements of the structural design. A galvanized steel strip for foundation grounding is embedded in the foundations. According to the structural design, a concrete slab is poured on a compacted sand fill on top of an underlying construction foil.
Further in the contract, it states that the Client (owner of the plot, i.e. myself) also bears all applicable fees, e.g., shell inspection, building inspection, chimney sweep, as well as additional costs arising during construction for structural engineering, architect, etc.
Now the question is: are these additional costs justified? Am I required to pay them? This should have been identified by them or the architect before signing the contract.
The contract does not mention an 18cm (7 inches) slab thickness anywhere...
Thank you.
H
hampshire11 Nov 2019 10:14The contract states: "Concrete and surveying according to structural calculation" – this means it is a variable item. The structural calculation requires "more." As a result, the variable amount changes and the price increases. In my view, this is payable.
The question of whether the architect should have anticipated this beforehand is reasonable. If the ground conditions in the area are generally considered "challenging," the architect could have addressed it. What was discussed and understood about variable items in general, and this one in particular, is of course unknown to me. It would not have made a difference in the price.
The amount seems, without knowing the exact quantities, quite fair and by no means an attempt to overcharge. I would not make an issue out of it but would use this occurrence as an opportunity to highlight variable items and note cost risks in a meeting. This will provide you with security – or at least certainty. At the same time, you develop a culture for future communication. Getting through a potentially critical situation well at the start is often a blessing for the progress of the project.
With that in mind: keep your spirits up and have a good construction phase!
The question of whether the architect should have anticipated this beforehand is reasonable. If the ground conditions in the area are generally considered "challenging," the architect could have addressed it. What was discussed and understood about variable items in general, and this one in particular, is of course unknown to me. It would not have made a difference in the price.
The amount seems, without knowing the exact quantities, quite fair and by no means an attempt to overcharge. I would not make an issue out of it but would use this occurrence as an opportunity to highlight variable items and note cost risks in a meeting. This will provide you with security – or at least certainty. At the same time, you develop a culture for future communication. Getting through a potentially critical situation well at the start is often a blessing for the progress of the project.
With that in mind: keep your spirits up and have a good construction phase!
M
Mottenhausen12 Nov 2019 10:28Structural engineering is always initiated only after the contract is signed, as part of the detailed planning phase; therefore, this is always noted as an additional clause in the contract.
I don’t think there’s much you can do about that. Unfortunately, the previously sent soil survey won’t change much in this regard.
I don’t think there’s much you can do about that. Unfortunately, the previously sent soil survey won’t change much in this regard.
What does reinforced mean? Do the strip foundations need to be dug deeper?
I would try to negotiate a bit more with the builder. Increasing the slab thickness from 18 to 30cm (7 to 12 inches) alone shouldn’t cost him $5,600.
He probably wouldn’t even pay that much for all the concrete for the slab...
That’s why you should always have the structural calculations done beforehand, so there are no surprises.
I would try to negotiate a bit more with the builder. Increasing the slab thickness from 18 to 30cm (7 to 12 inches) alone shouldn’t cost him $5,600.
He probably wouldn’t even pay that much for all the concrete for the slab...
That’s why you should always have the structural calculations done beforehand, so there are no surprises.
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