I found various opinions on this and would like to know how this issue was handled contractually or possibly renegotiated in your cases.
According to our construction contract, we always pay first, and then the next phase of construction is completed. So, our payments are always made in advance.
Based on the assessment of a friend with industry experience, this is not uncommon, but he would try to renegotiate it. An invoice that has already been paid is no longer a "lever" for negotiation.
How was it handled in your experience?
According to our construction contract, we always pay first, and then the next phase of construction is completed. So, our payments are always made in advance.
Based on the assessment of a friend with industry experience, this is not uncommon, but he would try to renegotiate it. An invoice that has already been paid is no longer a "lever" for negotiation.
How was it handled in your experience?
B
Bauexperte31 Jul 2016 14:15Mizit schrieb:
We have not signed the construction contract yet! Good! That was not so clear from your first post.
Mizit schrieb:
I need to check the exact number of individual payments at home later; I can give you the detailed info this evening. Fine.
Regards, Bauexperte
The first 3% is almost certainly the seller’s commission. They don’t work for free, and often these sellers are paid on commission. Preparing the documents for the building permit, on the other hand, is real work that not just anyone can do easily. At completion, there is another 2%, which together with the first two amounts makes up 10%. Then there are 9 individual trades at 10% each.
In theory, the payment schedule should be set up so that the construction company is always working in advance and gets paid after the work is done. The 3% can already be due upon signing, for example, if these represent costs for the seller. After all, you have caused expenses for the company by communicating with the seller, etc. (administrative costs).
In practice, however, almost all payment plans are designed so that you pay upfront. Around 50% by the time the building envelope is closed (roof and windows installed) is reasonable. There have been plans with 70-80%, though. Hardly anyone offers 50%; usually, it ends up being close to 60%. More important than the percentage paid during the shell construction phase is the amount paid upon laying the screed. After that, there is usually a long waiting period for drying, a time when companies may go bankrupt. Also, the work that follows can still be planned and carried out by yourself if necessary (final installation of plumbing, tilers, installing outlets, etc.). You just need to have enough money saved for this. And 2% at the end is obviously a joke.
The final payment should ideally be 5% and only due once the house has been handed over. However, hardly anyone will agree to this.
You might want to have your contract reviewed by a professional. Especially the construction time guarantee (with a reasonable final compensation payment that truly covers all delay costs) and missing items that might initially be hidden from you (portable toilet, for example) can be recognized at a glance by an expert, who can also suggest changes or warn you about what you are buying.
In theory, the payment schedule should be set up so that the construction company is always working in advance and gets paid after the work is done. The 3% can already be due upon signing, for example, if these represent costs for the seller. After all, you have caused expenses for the company by communicating with the seller, etc. (administrative costs).
In practice, however, almost all payment plans are designed so that you pay upfront. Around 50% by the time the building envelope is closed (roof and windows installed) is reasonable. There have been plans with 70-80%, though. Hardly anyone offers 50%; usually, it ends up being close to 60%. More important than the percentage paid during the shell construction phase is the amount paid upon laying the screed. After that, there is usually a long waiting period for drying, a time when companies may go bankrupt. Also, the work that follows can still be planned and carried out by yourself if necessary (final installation of plumbing, tilers, installing outlets, etc.). You just need to have enough money saved for this. And 2% at the end is obviously a joke.
The final payment should ideally be 5% and only due once the house has been handed over. However, hardly anyone will agree to this.
You might want to have your contract reviewed by a professional. Especially the construction time guarantee (with a reasonable final compensation payment that truly covers all delay costs) and missing items that might initially be hidden from you (portable toilet, for example) can be recognized at a glance by an expert, who can also suggest changes or warn you about what you are buying.
B
Bauexperte31 Jul 2016 23:46Mizit schrieb:
If the windows and doors were installed, we would have paid 68%.
Too much for an enclosed shell!Regards, Bauexperte
Bauexperte schrieb:
Too much for an enclosed shell!
Regards, BauexperteName a nationwide home builder where you don’t have to overpay before the installation of technical systems according to the payment schedule!
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