Hello to all readers! 🙂
After mentioning the payment schedule topic in a post related to a specific company, I would like to open a new discussion on this subject today. I want to focus on the basics first (independent of any company), and I suspect many others feel the same way. 😉
After my partner and I were presented with an "impossible" payment schedule, where an overpayment would occur after structural work, roof & windows, we tried to research what would be appropriate at this point. Overpayments are supposed to be absolutely avoided! But it’s not that easy... opinions vary widely: Some say 52%, others about 60%, and others around 70%...
Looking now at the installment payment plan according to the broker and developer regulations (which you are supposed to review for comparison, even if you are not building with a developer), I also arrive at 70.60% (30 + 28 + 5.6 + 7). So is that too much? Or are 52% too little? Someone must have come up with the broker and developer regulation payment schedule... and had a reason for it?!?
Since we have been in contact with several companies and have various payment schedules from them, I can only say that all of them (large or small construction companies alike!) are at or above about 70% at the mentioned stage.
I guess the solution lies somewhere in between?!? 🙄
Thanks for all tips and advice!!!
Goldbeere 🙂
After mentioning the payment schedule topic in a post related to a specific company, I would like to open a new discussion on this subject today. I want to focus on the basics first (independent of any company), and I suspect many others feel the same way. 😉
After my partner and I were presented with an "impossible" payment schedule, where an overpayment would occur after structural work, roof & windows, we tried to research what would be appropriate at this point. Overpayments are supposed to be absolutely avoided! But it’s not that easy... opinions vary widely: Some say 52%, others about 60%, and others around 70%...
Looking now at the installment payment plan according to the broker and developer regulations (which you are supposed to review for comparison, even if you are not building with a developer), I also arrive at 70.60% (30 + 28 + 5.6 + 7). So is that too much? Or are 52% too little? Someone must have come up with the broker and developer regulation payment schedule... and had a reason for it?!?
Since we have been in contact with several companies and have various payment schedules from them, I can only say that all of them (large or small construction companies alike!) are at or above about 70% at the mentioned stage.
I guess the solution lies somewhere in between?!? 🙄
Thanks for all tips and advice!!!
Goldbeere 🙂
G
Golfer9119 Nov 2010 10:59Hello, the best way to prevent overpayments is to contract services individually with invoice verification by an architect. That's how we did it; we worked with an architectural firm in Cologne that had an affiliated network of craftsmen nationwide. The advantage of this service provider is a fixed price as a maximum limit, no overpayments, since payment is made only after service completion and acceptance.
Best regards, Bert
Best regards, Bert
N
Neu_Kieler12 Dec 2010 08:48Even though we are not quite at that stage yet, at the moment the banks are our main point of contact to get a clear overview of financing, we have nevertheless received a breakdown of our potential cost plan. Looking at others, I think this one is quite good.
7% after completion of the building permit / planning permission
13% after completion of building drainage, base slab / foundation
13% after completion of external and internal walls on the ground floor without cladding
13% after erecting the roof frame
13% after completion of the cladding without window sills
8% after completion of roofing and plumbing work
5% after installation of windows and external doors (without locking and fine adjustment)
5% after completion of rough electrical installation
3% after completion of drywall
3% after completion of plastering work
4% after completion of heating rough installation
3% after laying the screed
4% after laying the tiles (without baseboards)
2% after completion of heating and sanitary installation
2% after completion of electrical installation
2% after installation of internal doors
If I am mistaken, please let me know.
7% after completion of the building permit / planning permission
13% after completion of building drainage, base slab / foundation
13% after completion of external and internal walls on the ground floor without cladding
13% after erecting the roof frame
13% after completion of the cladding without window sills
8% after completion of roofing and plumbing work
5% after installation of windows and external doors (without locking and fine adjustment)
5% after completion of rough electrical installation
3% after completion of drywall
3% after completion of plastering work
4% after completion of heating rough installation
3% after laying the screed
4% after laying the tiles (without baseboards)
2% after completion of heating and sanitary installation
2% after completion of electrical installation
2% after installation of internal doors
If I am mistaken, please let me know.
B
Bauexperte12 Dec 2010 10:48Hello,
The many payment stages give a good impression at first glance. The catch is, once the finished shell of the building is completed, you will have used up 72% of your capital. What will you do if the worst-case scenario happens? With the remaining amount, you will never be able to complete your house…
A maximum of 60% should be the upper limit for this stage of construction.
Kind regards
Neu_Kieler schrieb:
...received a breakdown of our possible cost plan. Compared to others I’ve seen, I think this one is quite good.
The many payment stages give a good impression at first glance. The catch is, once the finished shell of the building is completed, you will have used up 72% of your capital. What will you do if the worst-case scenario happens? With the remaining amount, you will never be able to complete your house…
A maximum of 60% should be the upper limit for this stage of construction.
Kind regards
Hello,
from personal experience: as a builder, I am currently in a very difficult situation – having paid too much for the shell construction and the build is no longer progressing...
But it is not universal – for example, if a garage is part of the construction, it must be listed separately.
Regards
Alexander
from personal experience: as a builder, I am currently in a very difficult situation – having paid too much for the shell construction and the build is no longer progressing...
But it is not universal – for example, if a garage is part of the construction, it must be listed separately.
Regards
Alexander
R
Regensburger2 Jan 2011 12:48Hello,
I am currently trying to educate myself on the subject.
If I understand everything correctly:
Is 25% payment after the start of earthworks definitely too much?
This concerns the purchase of an apartment in a six-unit building.
Regards,
Regensburger
I am currently trying to educate myself on the subject.
If I understand everything correctly:
Is 25% payment after the start of earthworks definitely too much?
This concerns the purchase of an apartment in a six-unit building.
Regards,
Regensburger
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