ᐅ Construction Planning and Building Process – Is a Preliminary Agreement with the Builder Necessary?

Hello everyone,

I would really appreciate answers to my questions and thank you in advance.

Current situation: Plot of land available (building plot with development plan)
Desired situation: Construction of a single-family house with a basement on the plot, including DEKRA construction supervision (inspection and approval of individual trades)

Below are the rough steps of building a house as I imagine them. Please feel free to add or correct the order.


1. Preliminary discussion with the preferred prefab house company
2. Inspection of the building structure and review of experience reports about the prefab house company
3. Review of the prefab house company’s financial situation
4. Initial selection of the offered equipment package for the interior & factory visit of the production
5. Decision made on the prefab house company
6. Architectural planning including soil testing and structural engineering analysis
7. Preparation of building plans, energy demand calculation, cross-section planning, living space calculation
8. Submission of building plans to the local authority (estimated approval time up to 3 months)
9. Loan application must be submitted and approved
10. After approval of the plans and loan application (9 months interest-free commitment period) signing the contract with the prefab house company (contract will be carefully reviewed regarding scope and completeness of trades)

11. Start of production by the prefab house company
12. Excavation, groundwork, and installation of water supply & drainage, internet, gas line
13. Basement construction begins, completed basement including insulation
14. Basement completed
15. After completion of house production, delivery, and assembly on basement slab
16. Shell structure erected
17. Roof frame installed
18. Interior finishing starts (electrical work, insulation, plastering, etc.)
19. House finished, final acceptance inspection
20. Move-in and completion of driveway, garden, etc.

Questions:

Regarding point 2: Is some kind of preliminary contract with the prefab house company already necessary here? The architect is unlikely to carry out their work without financial security.
Regarding point 14: Is it disadvantageous if the basement is completed and the house assembly takes place a week later?


- By when do I need to have secured financing from the bank at the latest? The 9 months from point 7 seem very tight to me! (Production of the house walls, etc., already takes several months.)
- Is it correct that payments to the prefab house company are only made after approval or acceptance by the DEKRA construction expert I commissioned?

1. Preliminary meeting with the preferred prefab house company
2. Inspection of the building structure and review of experience reports about the prefab house company
3. Verification of the prefab house company’s financial situation
4. Loan application must be submitted and approved
5. Decision on the prefab house company made
6. Signing with the prefab house company (contract of course reviewed for scope and completion of trades)
7. Preliminary selection of the offered equipment package for the interior and factory tour of the manufacturing
8. Architectural planning without soil test and structural engineering review
9. Creation of construction plans, energy demand calculation
10. Soil test and structural engineering review
11. Start of production by the prefab house company
12. Excavation and groundwork without installation of water supply & drainage, internet, gas lines
13. Start of basement construction, finished basement including insulation
14. Basement construction completed
15. After production of the house is finished, delivery and assembly on basement slab
16. Shell of the house completed
17. Roof frame completed
18. Installation of water supply & drainage, internet, gas lines
19. Interior work begins (electrical, insulation, plastering, etc.)
20. House completed, final inspection
21. Move-in and completion of driveway, garden, etc.

This is roughly how the process goes.

Sampling and anything that creates extra work for the prefabricated house provider should always be done after signing the contract.

You should also have the loan secured beforehand. Better safe than sorry. Unless you are 1000% certain that you will be approved for a loan of xxxk€ (xxxk).

From step 5 onward, financing should be addressed. From step 6, there is almost no turning back. That’s when the financing needs to be in place.

Nine months is the typical timeframe with a "normal" order situation. Currently, this might be a bit optimistic. It varies from provider to provider. The nine months usually start counting after all conditions are cleared, meaning financing approved, assignment approved, building permit / planning permission approved, etc. (step 10).

It’s better to plan for 12 to 15 months at the moment. You will only know for sure after the construction start date has been confirmed.

One week between completion of the basement and house installation is already quick. Usually, there is a bit more buffer time. The basement needs to be measured to ensure the house fits on it. Delays with the basement can happen.

There are prefabricated house companies that work with external architects. This is how it looks in your case. You don’t need a contract with the house company. Of course, you have to pay the architect a few thousand euros. However, the plan will only be valid for that specific house company.

When the house must be paid for is specified in the contract. Some companies advertise payment only after handover. If this is stated in the contract, that is what will apply.

Who is your favorite so far? (also via private message)

1. Preliminary discussion with the preferred prefabricated house company
If you want to build with a prefabricated house company, it certainly doesn’t hurt (judging by your further questions, I assume you mean a prefabricated timber frame construction)
2. Inspection of the building’s structure and review of experience reports about the prefabricated house company
Definitely won’t hurt
3. Verification of the prefabricated house company’s financial situation
How do you plan to do that?
4. Preliminary sampling of the offered interior package and factory tour of the production site
Unlikely that anyone would agree to that
5. Decision made regarding the prefabricated house company
hmm
6. Architectural planning including soil testing and structural analysis
When working with a prefabricated house company, you usually don’t start with an architect at this stage…
7. Preparation of building plans, energy demand calculation, cross-sectional planning, and living space calculation
Basically not relevant for them – just standard planning
8. Submission of building plans to the local authority (estimated approval time up to 3 months)
9. Loan application must be submitted and approved
I would check much earlier whether and what is possible
10. After plan and loan approval (9 months interest-free loan commitment period), signing the contract with the prefabricated house company (contract is, of course, reviewed for scope and completeness of trades)
If you build with a prefabricated house company, you will likely have to sign much earlier; if you go with an architect and individual trade contracts, the process will be different
11. Start of production by the prefabricated house company
A house is not “produced”
12. Excavation, groundwork, and installation of water supply & drainage, internet, and gas lines
Utility lines usually come later, after the house is erected
13. Start of basement construction, including insulated precast basement
14. Completion of basement construction
15. After completion of the house production, delivery and assembly on the basement slab
16. Shell structure completed
17. Roof frame erected
18. Interior work begins (electrical, insulation, plastering, etc.)
19. House completed, final acceptance inspection
20. Move-in and completion of driveway, garden, etc.

Spunk schrieb:
From step 5 onward, financing should be addressed.

Exactly... and between steps 5 and 6, the contract will be signed.

Bauhamster schrieb:
Regarding point 2: Is some kind of preliminary agreement with the prefab house company necessary at this stage? The architect is unlikely to start work without financial security.

Point 2 is not related to your question: The architect usually begins work only after signing. After all, there are standard house models that give a price framework.

Bauhamster schrieb:
Regarding point 14: Is it a disadvantage if the basement is completed and the house assembly happens a week later?

Hmm... You should ask the house builder; they are the right contact for that.

Bauhamster schrieb:
- By when do I need to have the bank financing secured at the latest? Nine months from step 7 seems very tight to me! (Manufacturing of house walls, etc., takes several months)

Yes, you often end up paying commitment fees during that time. You should definitely factor those in.

Bauhamster schrieb:
- Is it correct that payments to the prefab house company are only made after approval or acceptance by the DEKRA building inspector I have hired?

No. Payment is due 14 days after the work package is completed. When the inspector visits the site is your concern; the builder has nothing to do with it. You hired the inspector, not the house builder.