ᐅ Construction Planning and Building Process – Is a Preliminary Agreement with the Builder Necessary?
Created on: 11 Oct 2018 13:41
B
Bauhamster1
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?
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?
montessalet11 Oct 2018 15:13Interesting answers...
Regarding preliminary selections: many companies do offer this—after all, you need to know what is included and what approximate additional costs to expect. Before making a decision, I wanted a binding quote (including floor plans and prices); everything else feels like buying a "pig in a poke."
And YES, there are companies that do exactly this (including an initial floor plan as the basis for the price quote, as well as preliminary selections on site).
By the way, we will proceed the same way on these points.
Of course, prices are often still missing at this stage. However, you have to put together some information yourself to get an overall view. As others have mentioned: include buffers for upgrades, garage/carport, landscaping (including groundwork for the house construction, utility connections, etc.).
Nevertheless, aside from the plot, the house itself usually represents the largest cost component. I think it is important to have a reasonably reliable idea of this in advance. And that is only possible if I have a floor plan prepared beforehand—because changes usually involve (sometimes significant) costs.
Regarding preliminary selections: many companies do offer this—after all, you need to know what is included and what approximate additional costs to expect. Before making a decision, I wanted a binding quote (including floor plans and prices); everything else feels like buying a "pig in a poke."
And YES, there are companies that do exactly this (including an initial floor plan as the basis for the price quote, as well as preliminary selections on site).
By the way, we will proceed the same way on these points.
Of course, prices are often still missing at this stage. However, you have to put together some information yourself to get an overall view. As others have mentioned: include buffers for upgrades, garage/carport, landscaping (including groundwork for the house construction, utility connections, etc.).
Nevertheless, aside from the plot, the house itself usually represents the largest cost component. I think it is important to have a reasonably reliable idea of this in advance. And that is only possible if I have a floor plan prepared beforehand—because changes usually involve (sometimes significant) costs.
M
Mottenhausen11 Oct 2018 15:27In our case, the soil investigation report with foundation recommendation is carried out at our own expense before signing the contract. This means it is clear where the house will be located (the dimensions of the planned footprint and, in our case, the absence of a basement are also fixed). Two boreholes are now being drilled at this location. With the foundation recommendation, we can reflect in the offer that the earthworks and foundation costs correspond to the actual conditions and are not just based on the very limited standard scope of work. Besides the selection of finishes, the foundation is probably one of the biggest cost traps.
Many providers now also offer preliminary selection appointments, meaning a non-binding visit to the selection center. This is important because what use is it if tiles up to €35 per square meter (approximately $37 per square yard) are included, but the selection center lists highly inflated prices well above wholesale rates, and you realize too late that the included specifications are basically worthless. (We were offered this by two prefab house suppliers, but now we are building with a local builder, where each trade is probably selected separately with the executing tradesperson directly through wholesale channels.)
Many providers now also offer preliminary selection appointments, meaning a non-binding visit to the selection center. This is important because what use is it if tiles up to €35 per square meter (approximately $37 per square yard) are included, but the selection center lists highly inflated prices well above wholesale rates, and you realize too late that the included specifications are basically worthless. (We were offered this by two prefab house suppliers, but now we are building with a local builder, where each trade is probably selected separately with the executing tradesperson directly through wholesale channels.)
montessalet schrieb:
Regarding preliminary sampling: Many companies do offer this – after all, you need to know what is included and what potential additional costs you might expect. Which companies exactly? At the very beginning, we also checked out a few turnkey builders, and some didn’t even want to hand over the scope of work before signing...
M
Mottenhausen11 Oct 2018 15:39In our case, there was an offer for a preliminary visit to the model showroom at Bien-Zenker and Rötzer Brick Element House.
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