ᐅ Payment before or after completion of a construction phase?

Created on: 22 Jul 2016 21:04
M
Mizit
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?
F
Final
1 Aug 2016 08:56
ypg schrieb:
Name one nationwide home builder where you don’t have to pay too much ahead of schedule according to the payment plan before the technical installations are completed!

I know a prefabricated house provider where you only pay in full upon handing over the keys (starts with S and is partly connected to Sweden and Norway).

But that might be the needle in the haystack.
Y
ypg
1 Aug 2016 09:09
Final schrieb:
I know of a prefab home provider where you only pay everything upon handover of the keys (starts with S and is somehow related to Sweden and Norway).

But that might be the needle in a haystack

I also know a company starting with S that advertises this. It’s Scanhaus Marlow Marlow, based in Mecklenburg-Vorpommern. However, Scanhaus Marlow Marlow’s houses are in the low-cost segment, which you wouldn’t exactly call a good example.
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Final
1 Aug 2016 09:19
ypg schrieb:
I also know a company starting with S that advertises this. That is Scanhaus Marlow Marlow from Mecklenburg-Vorpommern. However, Scanhaus Marlow Marlow houses are in the low-cost segment, which can hardly be considered a good example.

I thought naming companies was not allowed, but that was just my impression.

I don’t know whether they are good or bad. I happened to see them during a visit to a prefabricated house center.
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Peanuts74
1 Aug 2016 09:26
As far as I remember, our shell construction with the roof (without windows/front door) accounted for less than 50%.
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Bauexperte
1 Aug 2016 09:57
ypg schrieb:
Name me a national home builder where you don’t have to overpay according to the payment schedule before the technical installations are even in place!

There are far more of those than the opposite; unfortunately, the other group tends to gain more popularity!

The crux is that—in a worst-case scenario—32% of those remaining will never complete their single-family house. When I see such payment plans, I know the choice for such a provider was made solely based on the lowest price in the bottom right corner. That has never been and will never be sound advice!

Take, for example, the payment plans of the respected colleague Roter Wettbewerber or, in the detached house sector, the colleague Wettbewerber Weberhaus—just to name the most well-known ones. Then there are many well-performing regional providers who have also set up their payment plans fairly for both parties.

What all of them naturally have in common is that they want to be paid for their services; they are definitely not the low-cost faction. Even for the low-cost providers, it should be noted that once the single-family house is occupied, their prices do not differ much from those of properly calculated builds agreed upon in advance. This is simply not possible, as every single-family house requires its price "x". Therefore, every potential homeowner should carefully consider in advance whether they prefer security or are willing to accept a surprise package.

Best regards, Bauexperte
Y
ypg
1 Aug 2016 10:52
Bauexperte schrieb:
Take a look, for example, at the payment schedules of the respected colleague Roter Wettbewerber or, in the single-family house sector, colleague Wettbewerber Weberhaus – just to name the best-known ones. There are also many very well-functioning regional providers who have also established fair payment schedules for both parties.

I can’t, I don’t have them. That’s why I’m asking you (I know you collect them ). Ultimately, I see the main issue is that house builders are usually reluctant to change payment schedules. But there is of course ALWAYS the possibility to negotiate.