ᐅ Final Invoice Architect

Britta78 schrieb:
... but it doesn’t make much sense to have no payment schedule. There has to be an agreement somewhere about when payments are made.

For additional work that we assign to our builder, the practice is to pay 60% in advance and the remaining 40% upon completion. In addition, with each installment payment (for example, after the shell construction, after the roof, etc.), 3% of the invoice amount is withheld as security. So, after the house is completed, we basically still hold 6% of the agreed house price: 3% final payment plus 3% retention withheld as security...

60% advance payment is far from correct. Just for your information:

Invalid Clauses in Construction Contracts

According to the legal framework applicable in Germany, the contractor is required to provide services upfront. They can only request progress payments under Section 632a, Paragraph 1 of the German Civil Code (BGB) to the extent that they have already performed work that increases the value of the building.

Contractors understandably try to partially avoid this obligation by drafting contracts that guarantee them favorable progress payment terms.

Around 80% of all construction contracts concluded between commercial builders and private homeowners contain unbalanced payment schedules that disadvantage the homeowners.

Hello,

Britta78 schrieb:
... but it doesn’t make much sense not to have a payment schedule. There has to be an agreement somewhere about when payments are made. For additional work that we assign to our general contractor, the arrangement is that we pay 60% in advance and the remaining 40% upon completion. Additionally, at each interim payment (for example, after the shell construction, after the roof, etc.) 3% of the invoice is retained as security. So, after the house is completed, we basically still hold 6% of the agreed house price: 3% final payment retention + 3% security withholding...

I think there is a misunderstanding. You are talking about the payment schedule regarding the contractor/general contractor. However, the original question referred to the architect’s fee. These are two completely different matters.

Please correct me if I am the one who misunderstood the initial question...

Best regards

... the 60% down payment applies only to invoices | work that is commissioned in addition to the house construction contract, such as utility trenching, additional excavation, site access, etc.

I understand the initial question as building with an architect (who also acts as the general contractor)?

Britta78 schrieb:
I understand the original question to mean that the construction is done with an architect (who is also the general contractor)?

Huh 😕

An architect is not the same as a general contractor.

It is important to distinguish whether the architect is part of the construction company. In this case, the architect is treated the same as the construction company, usually according to the building code. The final invoice is only due after the completion of the project and defect-free acceptance. It must be noted that if guarantees, for example for warranty purposes, are agreed upon, full final payment should only be made after the agreed guarantees have been handed over—otherwise, an appropriate retention should be made.

The situation is different if an architect is separately commissioned for planning and construction supervision, independent of the construction company. In this case, the HOAI applies—even for verbal agreements. It depends on which service phases the architect is responsible for. Service phase 8—construction supervision—is only due after the completion of the house, including the review of the contractors’ final invoices and the correction of defects and outstanding work identified during acceptance.

In short: only pay the final invoice when the project is fully completed.

Read through VOB Part C! Even an architect understands it.