I am honestly shocked right now. Our construction company just informed me that they want 21.4% more money due to price increases in the building industry. At the moment, I am still stunned and can’t think clearly.
Check the contract
Talk to your expert
You can still do this today
Tomorrow you have your selection appointment. I would take a two-track approach here.
One, because of the additional request. This will, of course, be reviewed by the lawyer, who is optimistic that it won’t hold up, so meanwhile, ask for what you want.
Talk to your expert
You can still do this today
Tomorrow you have your selection appointment. I would take a two-track approach here.
One, because of the additional request. This will, of course, be reviewed by the lawyer, who is optimistic that it won’t hold up, so meanwhile, ask for what you want.
P
Pinkiponk7 Sep 2021 17:1011ant schrieb:
This is quite a bold timing for such a message. Does "was" mean that you now want to cancel the selection appointment? My husband is swimming right now, ;-) we still have to decide. I also don’t understand why they only inform us so shortly before.
Anna_BW schrieb:
Maybe they are hoping, "Oh, now that we’re this far, we’ll just push through." I rather fear that they want to get rid of us “cheaply.” Other home builders pay bonuses when customers withdraw their orders; our builder charges so much extra that customers give up voluntarily. And the unpleasant part for us is that new customers pay the higher prices for the exact same house. So we lose out either way.
It’s not that simple!
You have signed a contract with an associated scope of work description and (hopefully) a fixed-price guarantee for X months. If this period is exceeded (but only if it is not the fault of the construction company), the price may be MODERATELY increased by a certain percentage amount per month.
However, the price cannot be raised arbitrarily just to “get rid of you”; you have the right to receive your home at the agreed price.
If you encounter resistance, consult a lawyer.
You have signed a contract with an associated scope of work description and (hopefully) a fixed-price guarantee for X months. If this period is exceeded (but only if it is not the fault of the construction company), the price may be MODERATELY increased by a certain percentage amount per month.
However, the price cannot be raised arbitrarily just to “get rid of you”; you have the right to receive your home at the agreed price.
If you encounter resistance, consult a lawyer.
Pinkiponk schrieb:
I also don’t understand why they only inform us so shortly beforehand. Let me put it this way: it’s not hard to figure out, but the conclusion isn’t favorable for the company.
Pinkiponk schrieb:
our house builder is demanding so much more money that customers give up voluntarily. The bark beetle infestation didn’t happen overnight, and even combined with COVID-related logistical disruptions, it doesn’t justify the price increase—carpenters aren’t exactly part of the airline pilots’ union. The price hike is unprofessional and unfortunately indicates a supplier with weak capital reserves and limited in-house staff. Hopefully, your contract allows you to offer the supplier contract termination with fair compensation. In case of insolvency, completion bonds are effectively worth less as well.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
hampshire7 Sep 2021 18:02I haven’t yet fully understood whether the 21.4% increase actually refers to the total construction cost.
If it is the total construction cost, with a 0.6% adjustment margin per month, there would have to have been at least 36 months of construction delay when simply adding up. Using the “compound interest” method, it still amounts to at least 32 months. I recall that the situation has been dragging on for you, but that long?
Your contractor will need to justify the price increase—which they might be able to do with 34 months.
I would take some time tomorrow to listen carefully, request everything in writing, and then seek professional advice.
Do not make any commitments, review the samples, and avoid making any binding decisions. You can, of course, take your own notes.
If it is the total construction cost, with a 0.6% adjustment margin per month, there would have to have been at least 36 months of construction delay when simply adding up. Using the “compound interest” method, it still amounts to at least 32 months. I recall that the situation has been dragging on for you, but that long?
Your contractor will need to justify the price increase—which they might be able to do with 34 months.
I would take some time tomorrow to listen carefully, request everything in writing, and then seek professional advice.
Do not make any commitments, review the samples, and avoid making any binding decisions. You can, of course, take your own notes.
P
Pinkiponk7 Sep 2021 18:06hampshire schrieb:
I haven’t quite understood whether the 21.4% increase actually applies to the entire construction cost.
If it’s the total construction cost, then assuming a 0.6% adjustment margin per month, there would have to have been at least 36 months of construction delay if you simply add it up. Using the “compound interest” method, it still comes to at least 32 months. I remember that your project has been delayed, but that long?
Your supplier will have to justify the price increase—which they might be able to do over 34 months.
I would listen to everything carefully tomorrow, request a written explanation, and then seek professional advice.
Don’t make any commitments, review the samples, and avoid making binding decisions. You can take your own notes. We had a guaranteed fixed price until June 30, 2021.