ᐅ Price Increase – Our Construction Company Wants 21.4% More

Created on: 7 Sep 2021 16:10
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Pinkiponk
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.
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HausTmMike
7 Sep 2021 19:01
From my experience, I can say that building a house has actually become 20-30% more expensive over the past 6-8 months.
I would have the contract terms reviewed by a legal expert.
If you are correct and continue working with the general contractor, I would closely monitor and document every step in detail.
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Pinkiponk
7 Sep 2021 19:01
hampshire schrieb:

What exactly do the 21.4% surcharge refer to?

"The fixed price agreement was limited until June 30, 2021. According to our sales, delivery, and payment terms § 4.1, our new price list now applies. Due to the issues mentioned above with your construction project, prices have increased by 21.4%."
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Pinkiponk
7 Sep 2021 19:03
haydee schrieb:

Check the contract
Talk to your building expert
This can still be done today

Tomorrow you have the selection appointment. I would take a two-track approach there.
One track because of the additional charge. This will of course be reviewed by the lawyer, who is optimistic that it won’t hold up, so on the other track, ask for what you want.

I’m worried that going to the selection appointment might lead to additional costs or that participating could legally be seen as agreeing to the price increase. It’s really frustrating that we only received the information about the 21.4% increase a few hours before the appointment.
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ypg
7 Sep 2021 19:07
You are basically stuck in a bind! That’s not a nice situation 🙁
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haydee
7 Sep 2021 19:09
Silence does not imply consent.
Did you receive that information by phone or in writing?

Costs arise from the selection process regardless of the price increase.
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Myrna_Loy
7 Sep 2021 19:18
Oh man... I'm really sorry to hear that!