ᐅ Construction Delay – Compensation?

Hello again,

here is the situation: The construction company has informed us that there will likely be a two-month delay (move-in ready beginning of February instead of the planned end of November) and admits that it is their fault (they started too late overall). They want to compensate us for the two months by covering our ongoing apartment rent as well as the resulting construction loan interest during this period. Condition: If we carry out any work on the house ourselves during the delay period (i.e., December/January), such as painting preparation while the screed is drying or laying vinyl after the screed has dried, they will reduce the compensation by four weeks.

The company justifies this as a form of protection in case we accidentally cause any damage through our work, arguing that the house remains their property more or less until full completion.

Question: Is this common practice? Is it regulated by law? So far, these arrangements have only been communicated verbally; we have requested a written document and are still waiting, as the manager is apparently on vacation... [To clarify beforehand: No contractual penalty was agreed upon.]

The fact that they are accommodating you so straightforwardly—even though no construction timeline was agreed upon—is already a great sign. The reason they gave for wanting to push back your timeline by one month is obviously nonsense.
If the delay was only admitted verbally, it will be difficult to enforce legally. It is also clear that a reasonable cooperation should be aimed for.

What do you plan to do there during that time?!

Hi,

first question: developer or general contractor?

LuziEva schrieb:
that the house more or less remains their property until it is fully completed.

That is true with a developer, but with a general contractor it’s complete nonsense. In that case, it is and remains your property. Apparently, there are even lawyers who include all materials and equipment stored on your property in this, but that’s not the issue here.

If no penalty clause was agreed upon, you should be glad they are offering you anything at all…

Best regards,

Andreas

andimann schrieb:
Hi, first question: property developer or general contractor?

General contractor!
[QUOTE="andimann, post: 158793, member: 25961"]If no penalty clause was agreed upon, consider yourself lucky that they even offer you anything...[ /QUOTE]
We are too

Thanks for the reply!

Hello,

LuziEva schrieb:

Here’s the situation: The construction company informs us there will likely be a delay of two months (move-in ready in early February instead of the planned end of November) and admits it is their fault (overall, they started too late). They want to compensate us for the two months by covering our ongoing apartment rent as well as the resulting financing costs during this period.

I am glad to see confirmed what I have often said: there are far more reputable providers than the internet leads inexperienced laypersons to believe!

LuziEva schrieb:

Restriction: If during the delay period (December/January) we perform any work ourselves on the house (e.g., painting prep work while the screed dries or similar, or laying vinyl flooring after the screed has dried), they will reduce our compensation by four weeks. The company justifies this as a form of protection in case we "damage" something through our own work, and argues that the house is, more or less, their property until full completion.

Question: Is this a common practice? Is it legally established? So far it has only been verbal explanations regarding the above arrangements, we have requested a written document and are still waiting, as the manager is apparently on vacation... [To clarify in advance: No contractual penalty was agreed upon.]

If you purchased from a developer (building contractor), then unquestionably yes. However, if you bought through a general contractor as is common — where land and building come from separate parties and payment is made according to construction progress — then the representative was poorly worded. In this case, of course, your provider would not own the land or the partially completed building, but they do hold possession rights; anything else would surprise me.

I also find it understandable that the company wants to protect itself — in my opinion, there is nothing I haven’t seen happen on a construction site during this phase. By the way, it would be unwise on your part to start painting while the screed is drying. It is better to use this time to place one or two dehumidifiers depending on the size of the single-family home inside the building shell. Then painting will be easier afterward.

And enjoy the fact that you have hired a reputable construction partner for your house build!

Best regards,
Bauexperte

andimann schrieb:

It seems there are even lawyers who include all materials and equipment stored on your property.

This is not due to lenient lawyers, but because the legislator has defined it that way—however, only for (not yet paid/fully paid) items that are permanently attached to the building structure… before unrealistic expectations are raised here.

Regards, Bauexperte