ᐅ Just before signing a contract with a construction company, what should be considered?
Created on: 6 Jul 2017 00:17
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flibusterx1F
flibusterx16 Jul 2017 00:17Hello,
I am potentially about to sign a contract with a construction company. I have very little knowledge about this subject. Because of this—or perhaps despite it—I have developed quite a few doubts.
Here is the situation: The construction company found a plot of land for us, and together we have planned a house. Nothing has been signed yet, but we have worked on our floor plan (which was revised twice by a draftsman). The house is allowed to be built only with a gable roof, 1½ stories, with a net floor area of 192 m² (2,067 sq ft) and living space of 177 m² (1,905 sq ft), with a ceiling height of 2.6 m (8.5 ft) on the ground floor.
We have looked at the houses this company builds and have had one conversation with people who have built with this company. After the conversation, it felt as if it was not 100% objective. The construction company appears confident and is not cheap.
Now to my doubts:
- The plot is located so that we need a lifting station . This is supposed to cost 5,000 (EUR) including installation and allegedly cannot be avoided.
- Heating. Gas heating is not possible on the property, so we would opt for a ground-source heat pump. The construction company wants to sell us one through an affiliated company. It is a heat pump with a horizontal ground collector using trench collectors. The price, including underfloor heating installation/insulation, screed, washing machine with the combined stratified storage tank, and cooling function, is a hefty 49,700 (EUR).
The information about this heat pump is not very clear. For example, it does not explain exactly how this combined stratified storage tank works or its advantages and disadvantages. The individual room controls probably will not work in all rooms, which was not mentioned. I also don’t fully understand whether the heat pump system is monovalent or not.
The specifications I have are:
Heating output in kW at 0°C/35°C: 8.9 kW
1 refrigerant flow meter for determining COP building heating load approx. in kW: 6.35. Does this mean the COP value? Is 6.35 even credible?
- For the LAS-chimney including cladding, cleaning cap in the hallway, attic ladder, roof exit window with safety grating, walkway in the attic, wiring/switch/outlet in the attic, and air pressure monitor, we were charged 9,000 (EUR). Is this reasonable?
- We have not seen any survey report or similar for the plot. How necessary is this?
- We do not yet know exactly which fees/permits are included in the price and which are not. Changes to the floor plan should be free until the building permit / planning permission stage.
- A private road will lead to the plot. It is not yet clear how rainwater will be managed (each plot apparently needs its own lifting station for wastewater, which operates independently). What costs will arise for the 7 houses planned on the site? Does anyone have experience with this? For example, with waste collection or possible maintenance? What else should be considered?
Now about the price – including all special requests (chimney, heat pump, sauna preparation, 3 showers, large windows with external blinds at the bottom), we are at 333,000 (EUR) for the house alone.
The seller is increasingly pressing us to sign the contract. One can understand this; he has worked “for free” so far. My biggest doubts are about the heat pump and the lifting station. The seller says we got the plot too quickly and do not appreciate how difficult it is right now in Leipzig; it could take years for the next opportunity.
The plot costs almost 200,000 (EUR), so the whole project will be around 600,000 (EUR), and I think having some doubts is healthy 🙂
I feel like I have about one week to give him the answer whether we will proceed or not.
What questions should I clarify now? What do you think about all of this? I’m happy to provide any information I have, though I would prefer not to name the companies at this stage.
I would be very grateful for any tips, criticism, or advice!
I am potentially about to sign a contract with a construction company. I have very little knowledge about this subject. Because of this—or perhaps despite it—I have developed quite a few doubts.
Here is the situation: The construction company found a plot of land for us, and together we have planned a house. Nothing has been signed yet, but we have worked on our floor plan (which was revised twice by a draftsman). The house is allowed to be built only with a gable roof, 1½ stories, with a net floor area of 192 m² (2,067 sq ft) and living space of 177 m² (1,905 sq ft), with a ceiling height of 2.6 m (8.5 ft) on the ground floor.
We have looked at the houses this company builds and have had one conversation with people who have built with this company. After the conversation, it felt as if it was not 100% objective. The construction company appears confident and is not cheap.
Now to my doubts:
- The plot is located so that we need a lifting station . This is supposed to cost 5,000 (EUR) including installation and allegedly cannot be avoided.
- Heating. Gas heating is not possible on the property, so we would opt for a ground-source heat pump. The construction company wants to sell us one through an affiliated company. It is a heat pump with a horizontal ground collector using trench collectors. The price, including underfloor heating installation/insulation, screed, washing machine with the combined stratified storage tank, and cooling function, is a hefty 49,700 (EUR).
The information about this heat pump is not very clear. For example, it does not explain exactly how this combined stratified storage tank works or its advantages and disadvantages. The individual room controls probably will not work in all rooms, which was not mentioned. I also don’t fully understand whether the heat pump system is monovalent or not.
The specifications I have are:
Heating output in kW at 0°C/35°C: 8.9 kW
1 refrigerant flow meter for determining COP building heating load approx. in kW: 6.35. Does this mean the COP value? Is 6.35 even credible?
- For the LAS-chimney including cladding, cleaning cap in the hallway, attic ladder, roof exit window with safety grating, walkway in the attic, wiring/switch/outlet in the attic, and air pressure monitor, we were charged 9,000 (EUR). Is this reasonable?
- We have not seen any survey report or similar for the plot. How necessary is this?
- We do not yet know exactly which fees/permits are included in the price and which are not. Changes to the floor plan should be free until the building permit / planning permission stage.
- A private road will lead to the plot. It is not yet clear how rainwater will be managed (each plot apparently needs its own lifting station for wastewater, which operates independently). What costs will arise for the 7 houses planned on the site? Does anyone have experience with this? For example, with waste collection or possible maintenance? What else should be considered?
Now about the price – including all special requests (chimney, heat pump, sauna preparation, 3 showers, large windows with external blinds at the bottom), we are at 333,000 (EUR) for the house alone.
The seller is increasingly pressing us to sign the contract. One can understand this; he has worked “for free” so far. My biggest doubts are about the heat pump and the lifting station. The seller says we got the plot too quickly and do not appreciate how difficult it is right now in Leipzig; it could take years for the next opportunity.
The plot costs almost 200,000 (EUR), so the whole project will be around 600,000 (EUR), and I think having some doubts is healthy 🙂
I feel like I have about one week to give him the answer whether we will proceed or not.
What questions should I clarify now? What do you think about all of this? I’m happy to provide any information I have, though I would prefer not to name the companies at this stage.
I would be very grateful for any tips, criticism, or advice!
H
HilfeHilfe6 Jul 2017 07:31Hello, with a budget of 600k, I wouldn’t rush, especially since you still have important points to consider. Why are you coming to the forum for this? There are also professionals who can review your contracts for a fee and provide advice or clarify things for you. This is true even here in the forum.
It’s better to spend a few hundred euros on a review than to face unexpected costs later or be unhappy with the execution.
Regards
It’s better to spend a few hundred euros on a review than to face unexpected costs later or be unhappy with the execution.
Regards
sven.conzi6 Jul 2017 08:50A soil survey should be conducted. It might be advisable to involve a building expert from the start and have them review the construction specifications. Do not rush the process.
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flibusterx16 Jul 2017 08:58Regarding the soil survey, I was told the following – it is currently difficult because the entire plot is still under redevelopment – it is planned to be raised by about 60cm (24 inches), and only then would such a survey make sense. Now I either have to take this on faith or, as HilfeHilfe advises, consult a professional inspector and list all the aspects I need addressed before signing. I will likely follow that advice. Which companies would you recommend contacting? Do you have any comments on the other features of this project?
H
HilfeHilfe6 Jul 2017 09:58flibusterx1 schrieb:
This is what I was told about the soil survey – it’s currently difficult because the entire property is still under redevelopment – it is supposed to be raised by about 60cm (24 inches), and only then would such a survey make sense. Now I either have to take their word for it or, as HilfeHilfe recommends, go to a professional inspector and list all the things I need before signing. I will probably follow that advice. Which companies do you approach for this? Do you have any comments regarding the other aspects of this project?Earthworks are especially very, very expensive. What do you do if the soil is contaminated or there is such a high groundwater level that you have to build a basement?
Who bears the financial risk? Hardly the developer.
B
bierkuh836 Jul 2017 10:13HilfeHilfe schrieb:
Especially earthworks are very, very expensive. What do you do if the soil is contaminated or there is such a high groundwater level that you have to build with a basement?
Who bears the financial risk? Hardly ever the developer.If it involves a developer, which is not yet clear, they may be responsible depending on the contract terms. This needs to be differentiated. However, the original poster should seek professional advice as already recommended and NOT be pressured.
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