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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flibusterx1
Hello,
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!
Have you already arranged the financing?
Just out of curiosity: Is this the first available plot or house you found? Or have you already done some searching, compared different options, and considered a few technical aspects (for example, what kind of wall construction is there, and do I even like it)?
Just out of curiosity: Is this the first available plot or house you found? Or have you already done some searching, compared different options, and considered a few technical aspects (for example, what kind of wall construction is there, and do I even like it)?
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flibusterx16 Jul 2017 11:22We settled the financing at the beginning.
This is really the very first plot/house. We haven't contacted any other construction company. We are told that the situation with plots in the city of Leipzig is such that we could wait years for the next opportunity. Finding a plot on our own or through a real estate agent actually seems very, very difficult; we have been searching for about 6 months and have found nothing so far. This means you would either have to move out of the city, which we do not want, or turn to a construction company.
This is really the very first plot/house. We haven't contacted any other construction company. We are told that the situation with plots in the city of Leipzig is such that we could wait years for the next opportunity. Finding a plot on our own or through a real estate agent actually seems very, very difficult; we have been searching for about 6 months and have found nothing so far. This means you would either have to move out of the city, which we do not want, or turn to a construction company.
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HilfeHilfe6 Jul 2017 12:44It has naturally also become a seller’s market.
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Steffen806 Jul 2017 12:53We are building just "around the corner" and have been searching for a plot of land for well over 6 months, ultimately paying more than 300,000. It’s not just difficult... it’s almost impossible to get a plot here right now 🙂
Which area of Leipzig is it? North? South?
Which area of Leipzig is it? North? South?
The ceiling height on the ground floor of 2.60 m (8 ft 6 in) should not be measured from the shell construction stage—otherwise, the effective height after installing the screed will only be about 2.40 m (7 ft 10 in).
Otherwise, have the preliminary contract and scope of work reviewed. This can possibly be done by the local consumer advice center.
Otherwise, have the preliminary contract and scope of work reviewed. This can possibly be done by the local consumer advice center.
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flibusterx16 Jul 2017 12:57Lindental, for 190€ per m2 (approximately $210 per sq yard), 900m (980 yards) from the S-Bahn (Wahren), very quiet street.
How large is your plot and where exactly? That sounds like Markkleeberg 🙂 Ours is just over 1000m2 (12,000 sq ft).
No idea how bad the airplane noise really is there; we visited four times at different times of the day, and it was very quiet.
How large is your plot and where exactly? That sounds like Markkleeberg 🙂 Ours is just over 1000m2 (12,000 sq ft).
No idea how bad the airplane noise really is there; we visited four times at different times of the day, and it was very quiet.