ᐅ Signing a construction contract before financing is secured?
Created on: 18 Feb 2016 11:24
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borderpuschl
Hello dear building experts,
After a long decision-making process, we have now chosen a house and a company. Since we would like to start this year, we should sign the construction contract relatively quickly.
Now my question is, how did you handle this?
1.) We cannot finalize the financing yet because we have no confirmation of the KfW efficiency rating we will receive.
2.) The energy consultant only calculates after the contract is signed (which is understandable, as they won’t invest time without security).
How was it for you? I would like to have the assurance that the financing will work before signing. We have roughly calculated everything with very similar figures, but I feel a bit uncertain about taking such a step.
Many thanks in advance for your helpful answers.
After a long decision-making process, we have now chosen a house and a company. Since we would like to start this year, we should sign the construction contract relatively quickly.
Now my question is, how did you handle this?
1.) We cannot finalize the financing yet because we have no confirmation of the KfW efficiency rating we will receive.
2.) The energy consultant only calculates after the contract is signed (which is understandable, as they won’t invest time without security).
How was it for you? I would like to have the assurance that the financing will work before signing. We have roughly calculated everything with very similar figures, but I feel a bit uncertain about taking such a step.
Many thanks in advance for your helpful answers.
B
borderpuschl18 Feb 2016 13:19Could it be that the reason is we are only choosing a shell house, and therefore they cannot provide the warranty? However, the contract should still specify that a certain standard is achieved with the given technology.
Hi,
phew, that’s obviously a different situation. What exactly are you having built? Just the shell, and you’re subcontracting everything else? In that case, it will probably be difficult to specify a standard in the contract. How could you, since the shell builder wouldn’t be involved in that anyway.
But if you’re not buying a “turnkey house,” you’ll have to pay the energy consultant yourself anyway. So he can start doing the calculations now, right?
Besides, it’s not such a huge effort after all. My general contractor kindly and without complaint ran three different heating/solar thermal/ventilation options through the calculations for me.
Best regards,
Andreas
phew, that’s obviously a different situation. What exactly are you having built? Just the shell, and you’re subcontracting everything else? In that case, it will probably be difficult to specify a standard in the contract. How could you, since the shell builder wouldn’t be involved in that anyway.
But if you’re not buying a “turnkey house,” you’ll have to pay the energy consultant yourself anyway. So he can start doing the calculations now, right?
Besides, it’s not such a huge effort after all. My general contractor kindly and without complaint ran three different heating/solar thermal/ventilation options through the calculations for me.
Best regards,
Andreas
B
borderpuschl18 Feb 2016 14:45It is a prefabricated timber frame house, but without the trades, as I prefer to subcontract those to local craftsmen.
The building envelope is complete, but heating, electrical work, plumbing, screed, and painting are, of course, still missing.
The building envelope is complete, but heating, electrical work, plumbing, screed, and painting are, of course, still missing.
Hi,
The heating, electrical systems, plumbing, and therefore also a mechanical ventilation system with heat recovery (which, as far as I know, is very often installed in prefabricated houses) are missing.
To ask somewhat provocatively: What does your shell builder have to do with your KFW energy rating? How can they guarantee something they have no influence over? How would they know which heating system you are installing? Which ventilation system? I can understand why that might be difficult for them.
And as I wrote earlier: if you are not buying a "finished house," you will have to pay the energy consultant yourself anyway. In that case, they can already start calculating now.
Best regards,
Andreas
The heating, electrical systems, plumbing, and therefore also a mechanical ventilation system with heat recovery (which, as far as I know, is very often installed in prefabricated houses) are missing.
To ask somewhat provocatively: What does your shell builder have to do with your KFW energy rating? How can they guarantee something they have no influence over? How would they know which heating system you are installing? Which ventilation system? I can understand why that might be difficult for them.
And as I wrote earlier: if you are not buying a "finished house," you will have to pay the energy consultant yourself anyway. In that case, they can already start calculating now.
Best regards,
Andreas
B
borderpuschl18 Feb 2016 15:17This means that the energy consultant receives data from the prefabricated house company regarding the wall construction used, and from us regarding the heating system we want to install, and calculates based on this information whether it meets the KFW standard or what additional measures are necessary.
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HilfeHilfe19 Feb 2016 07:27Hello,
first of all, you should at least have the loan commitments from the bank! Regarding the KfW funds, a minimum standard should be defined; it is still possible to change the KfW component. But the banker will know this.
I agree with the previous speakers! A minimum standard should be defined in the contract. In our case, it was KfW. You also need KfW certificates in advance to apply for the funds.
first of all, you should at least have the loan commitments from the bank! Regarding the KfW funds, a minimum standard should be defined; it is still possible to change the KfW component. But the banker will know this.
I agree with the previous speakers! A minimum standard should be defined in the contract. In our case, it was KfW. You also need KfW certificates in advance to apply for the funds.
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