Hello everyone,
After several months and numerous rounds of planning a single-family home, we now have detailed construction plans as well as tender results, which overall exceed our budget and expectations significantly. We then reached out directly to a construction company and received feedback that the scope and therefore the total amount of the structural shell tender did not accurately match the requirements. Without going into detail, unnecessary costs of about 20,000 EUR were identified.
In principle, I believe that besides the actual time-related work of a planner (architect), adherence to the specified budget is a crucial part of the contract. If this is not possible, for example if I provide an unrealistically low budget, the architect should clearly communicate this as early as possible. However, in our case, construction costs increased even from the estimate to the tender phase, meaning the goal was missed. Especially since we pointed out the budget and necessary cost reduction measures clearly at the "midpoint."
In short: If I am handed plans, drawings, and construction documents for a million-dollar house, I cannot make any use of them.
What are your thoughts? I am primarily interested in the contractual aspects rather than assigning blame.
Best regards
After several months and numerous rounds of planning a single-family home, we now have detailed construction plans as well as tender results, which overall exceed our budget and expectations significantly. We then reached out directly to a construction company and received feedback that the scope and therefore the total amount of the structural shell tender did not accurately match the requirements. Without going into detail, unnecessary costs of about 20,000 EUR were identified.
In principle, I believe that besides the actual time-related work of a planner (architect), adherence to the specified budget is a crucial part of the contract. If this is not possible, for example if I provide an unrealistically low budget, the architect should clearly communicate this as early as possible. However, in our case, construction costs increased even from the estimate to the tender phase, meaning the goal was missed. Especially since we pointed out the budget and necessary cost reduction measures clearly at the "midpoint."
In short: If I am handed plans, drawings, and construction documents for a million-dollar house, I cannot make any use of them.
What are your thoughts? I am primarily interested in the contractual aspects rather than assigning blame.
Best regards
We had almost the same problem (after about 7 meetings, it was still the preliminary design and not a construction plan). After incorporating various cost-saving measures and doing some work ourselves, it only improved slightly. In the end, referring to the multiple discussions, we stopped the whole process and went back to the beginning—which was painful after 5 months of planning and being so excited about our house.
Have you already signed the contract? (our company is communicating with us and designing our house so far without a contract) If a contract exists, are your specifications (price-wise) included in it? However, it could also be that more and more requests came in during the design phase—such as controlled mechanical ventilation, electric roller shutters, etc. In that case, the company should have informed you that the price would increase, but the problem would then be more self-inflicted.
My advice—if possible: send it back, referring to the various discussions and notes. Either a solution is found, or you have to start over.
Have you already signed the contract? (our company is communicating with us and designing our house so far without a contract) If a contract exists, are your specifications (price-wise) included in it? However, it could also be that more and more requests came in during the design phase—such as controlled mechanical ventilation, electric roller shutters, etc. In that case, the company should have informed you that the price would increase, but the problem would then be more self-inflicted.
My advice—if possible: send it back, referring to the various discussions and notes. Either a solution is found, or you have to start over.
It is interesting that this issue appears quite frequently in discussions.
So far, we have only accepted the architect’s offer. No other contracts exist. Our wishes and expectations were clear quite early on and actually decreased rather than increased. At this point, we are considering stopping the entire project.
For the single-family house with 125 sqm (1,345 sq ft) and a basement, we planned a budget of 225,000 EUR. As a reference: 10.8 m x 7.8 m (35.4 ft x 25.6 ft), KfW77, Poroton T10, air-source heat pump—so no special requirements. Trades such as plumbing, electrical, flooring, painting, stairs, etc., will be subcontracted based on quotes from firms we know. Their prices are not as variable as many often think.
What is particularly frustrating is that the costs for earthworks and the shell construction including plaster are supposed to amount to 180,000 EUR. At this point, it doesn’t make sense to try to save a thousand here or there on windows. In other words, the main issue lies with the budgeted line items.
So far, we have only accepted the architect’s offer. No other contracts exist. Our wishes and expectations were clear quite early on and actually decreased rather than increased. At this point, we are considering stopping the entire project.
For the single-family house with 125 sqm (1,345 sq ft) and a basement, we planned a budget of 225,000 EUR. As a reference: 10.8 m x 7.8 m (35.4 ft x 25.6 ft), KfW77, Poroton T10, air-source heat pump—so no special requirements. Trades such as plumbing, electrical, flooring, painting, stairs, etc., will be subcontracted based on quotes from firms we know. Their prices are not as variable as many often think.
What is particularly frustrating is that the costs for earthworks and the shell construction including plaster are supposed to amount to 180,000 EUR. At this point, it doesn’t make sense to try to save a thousand here or there on windows. In other words, the main issue lies with the budgeted line items.
N
nordanney13 Nov 2013 19:58YvesB schrieb:
The only issue is that the costs for earthworks and the shell construction including plaster together are supposed to be 180,000 EUR. There’s no point in trying to save a thousand on windows. In other words, it initially depends on the items that were tendered. How much are the costs for your earthworks and foundation? For our townhouse with about 250 sqm (about 2,700 sq ft) of living space (simple design without a basement but with complex structural engineering, about 1,000 cubic meters (35,300 cubic feet) of enclosed volume), we have a shell contractor who charges only 124,000 EUR including the (minor) earthworks, brickwork on the ground floor, and external thermal insulation composite system (ETICS) on the upper floor.
Your price sounds like an initial offer to discourage and should still be reduced SIGNIFICANTLY (unless the earthworks plus basement are extraordinary).
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