Hello dear forum members,
I would like to get your opinion regarding the increase in house construction costs in 2013. Our general contractor is pushing for an adjustment of the fixed price due to various delays and rising costs of materials and labor. Contractually, this is acceptable and not contestable. He is asking for 2.5 % and argues that this is actually generous, considering they had cost increases of over 7 % in 2013. However, when looking at the construction cost index and the collective wage agreements of the construction industry, this seems quite excessive to me. How do you see this, or what have your experiences been?
Thanks in advance.
Best regards, Carsten82
I would like to get your opinion regarding the increase in house construction costs in 2013. Our general contractor is pushing for an adjustment of the fixed price due to various delays and rising costs of materials and labor. Contractually, this is acceptable and not contestable. He is asking for 2.5 % and argues that this is actually generous, considering they had cost increases of over 7 % in 2013. However, when looking at the construction cost index and the collective wage agreements of the construction industry, this seems quite excessive to me. How do you see this, or what have your experiences been?
Thanks in advance.
Best regards, Carsten82
B
Bauexperte25 Jan 2014 10:11Hello,
Regards, Bauexperte
Carsten82 schrieb:That could very well be the case, since in 2013 there were two significant price increases in our industry—regardless of wage rises; interestingly, both starting with copper prices, closely followed by the masonry material producers. Your builder’s allowance probably covered part of it, but now he wants you to cover the rest. Overall, I’d say it’s moderate 😀
And the over 7% seem more like an argument that in the end we’re happy to come out with “only” 2.5%.
Regards, Bauexperte
schubert7925 Jan 2014 13:08I've never heard of the price increasing after the contract is signed. A fixed price is a fixed price... Or am I misunderstanding something?
Masipulami25 Jan 2014 15:24It depends on the contract. In our case, there is no clause regarding price adjustments. The contractor is only entitled to increase the price if there is a change in the statutory value-added tax.