ᐅ General contractor requests price increase for the entire house
Created on: 6 Oct 2022 15:33
M
MSHausbau
Hello everyone,
I’ve read a lot and hope to get some advice...
We are building a house and are about 90% finished. The fixed price agreement expires at the end of October, and the contract doesn’t specify what happens afterward.
Now our general contractor is asking for €50,000.
His reasoning: As of today, the house is 18.66% more expensive, which is €51,250, so he is demanding €50,000 from us.
He already indicated over the phone that it probably won’t be the full 50K, but the 10K we offered was too low.
Now the question is, are we completely mistaken? I don’t see why we should pay extra for the entire house, only for the items that are still outstanding. That would be about €8,000 if you really apply the 18%.
Do you understand what I mean?
Does anyone have legal experience or some tips on how to argue this?
Our lawyer advises settling in the range of €15,000 to €20,000.
I’ve read a lot and hope to get some advice...
We are building a house and are about 90% finished. The fixed price agreement expires at the end of October, and the contract doesn’t specify what happens afterward.
Now our general contractor is asking for €50,000.
His reasoning: As of today, the house is 18.66% more expensive, which is €51,250, so he is demanding €50,000 from us.
He already indicated over the phone that it probably won’t be the full 50K, but the 10K we offered was too low.
Now the question is, are we completely mistaken? I don’t see why we should pay extra for the entire house, only for the items that are still outstanding. That would be about €8,000 if you really apply the 18%.
Do you understand what I mean?
Does anyone have legal experience or some tips on how to argue this?
Our lawyer advises settling in the range of €15,000 to €20,000.
M
MSHausbau6 Oct 2022 17:02andimann schrieb:
Hi,
There needs to be more detail. This is usually meant (and was probably understood by you this way) that the construction has to start within 12 months and at a price of X. This does not mean that slow progress is rewarded.
Why does your lawyer advise you to make the payment?
Kind regards,
Andreas For the services to be provided under this contract, the client shall pay the contractor a fixed price according to the overview sheet on page 1, including the applicable statutory value-added tax at the time the contract is signed. If there is a change in value-added tax, the fixed price will be adjusted accordingly. This does not apply to services that are to be performed within four months of the contract signing.
2. The contractor is bound to the fixed price stated in item no. 1) for a period of 12 months from the contract date. Delays for which the contractor is responsible are excluded when calculating the duration of the price binding period. If the client does not fulfill the necessary cooperation obligations within the price binding period, the rights and claims of the contractor will be governed by §§ 642, 643, 645 of the Construction Code.
3. Additional costs, such as those arising from special requests, as well as fees for inspections and approvals by building authorities, are not included in the fixed price.
The payment installments are then listed.
All of this relates to payment and price binding.
For your information: two installments are still outstanding.
Am I misunderstanding this, or does it mean that delays caused by the contractor are not taken into account when calculating the duration of the fixed-price period? To me, that sounds like an unfair disadvantage for the customer.
What else is missing from the house if you say it is 90% complete? Canceling the contract and finishing it yourself is not an option with the money from the two installments?
What else is missing from the house if you say it is 90% complete? Canceling the contract and finishing it yourself is not an option with the money from the two installments?
S
SaniererNRW1236 Oct 2022 17:31Reggert schrieb:
Am I reading this wrong: "Delays caused by the contractor are not taken into account when calculating the duration of the fixed price period." Or does this mean that delays caused by the general contractor are not their responsibility? = Delays caused by the general contractor are not counted => they are added to the 12 months
M
MSHausbau6 Oct 2022 17:32Reggert schrieb:
Am I misunderstanding this: "Delays caused by the contractor are not taken into account when calculating the duration of the price guarantee period."? Or does this mean that delays caused by the general contractor (GC) are not their problem? To me, that sounds like an unfair disadvantage for the customer.
What else is missing from the house if you say it is 90% complete? Cancelling the contract and finishing it yourself is not an option with the money from the two installments? It really does read like it’s not the GC’s problem. The roof covering is missing, the final drywall work, the last steps of the electrical work, tiling, and the heating system is not installed yet.
I don’t think cancelling the contract is that simple?
M
MSHausbau6 Oct 2022 17:34SaniererNRW123 schrieb:
= Delays caused by the general contractor don’t count => they are added on top of the 12 monthsAre you sure? I understand it exactly the other way around. But so far, he hasn’t been responsible for any delay. My concern is only about the increase. It was clear and already planned that the cost would go up. But €50,000 (around $54,000) seems excessive to me…
S
SaniererNRW1236 Oct 2022 17:45MSHausbau schrieb:
Sure?Absolutely, because it literally says so there. But that won't help you.