Hello everyone,
After long negotiations and many discussions, we would now like to place the planning order with our chosen general contractor for our single-family home. For this purpose, we have been presented with a contract for the necessary architectural services to submit the building permit / planning permission application.
The general contractor requests 10,000 euros upon submission of the building permit application and 8,000 euros upon receiving the building permit.
These costs will later be credited in the construction contract.
Is this price and procedure common?
After long negotiations and many discussions, we would now like to place the planning order with our chosen general contractor for our single-family home. For this purpose, we have been presented with a contract for the necessary architectural services to submit the building permit / planning permission application.
The general contractor requests 10,000 euros upon submission of the building permit application and 8,000 euros upon receiving the building permit.
These costs will later be credited in the construction contract.
Is this price and procedure common?
I believe "receipt of the building application" refers to when the general contractor sends the building application to the original poster, so before it is submitted to the building authority (building permit / planning permission).
You should ask the general contractor which tasks are covered by the second payment. Then you can assess whether the payment makes sense. We have always made sure to pay only for the trades that have actually been completed.
You should ask the general contractor which tasks are covered by the second payment. Then you can assess whether the payment makes sense. We have always made sure to pay only for the trades that have actually been completed.
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Bauexperte15 Dec 2016 11:11ypg schrieb:
Edit: ...although I am currently wondering what is meant by "receipt of building application" when there is already a "handover of building application" The original poster wrote in post #3: "Receipt of the building permit from the city"Either way, the OP’s question about the classification of payment steps cannot be answered without more information.
Regards, Bauexperte
B
Bieber081515 Dec 2016 11:42One could interpret that €10,000 must be paid for the approval-ready planning and an additional €8,000 upon receiving the permit, totaling €18,000. For other construction projects, 5% of the construction cost is common; here that would mean €18,000 / 5% = €360,000. This provides a guideline to assess whether the price is reasonable.
The procedure is rather uncommon with a general contractor (GC), as typically the contract for the entire house is signed before planning begins. If only the planning (as a work contract) is commissioned here, that should be acceptable. However, this does not exempt one from the usual necessity to review the contract (for the planning) just as thoroughly as one would review a work contract for the entire house.
The procedure is rather uncommon with a general contractor (GC), as typically the contract for the entire house is signed before planning begins. If only the planning (as a work contract) is commissioned here, that should be acceptable. However, this does not exempt one from the usual necessity to review the contract (for the planning) just as thoroughly as one would review a work contract for the entire house.
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