ᐅ Delivery issues, material shortages – as of October 2022

Created on: 19 Oct 2022 08:12
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Nixwill2
Hello everyone,

Since July, we have had our approved building permit / planning permission, but since then, absolutely nothing has happened on the part of the home builder (prefabricated house). No planning is being done until the selection appointment, and we have now been given an appointment for this in February 2023.

The original timeline was for the basement in December 2022, the house about 4-6 weeks later, and moving in roughly April-May 2023.

Now we are being told that the basement will arrive at the earliest 2-3 months after the selection appointment, the house will be delivered not 4-6 weeks later as originally planned, but in 5-6 months, and the finishing work will take not 3-4 months but rather about 6 months.

Overall, this means that it could be a whole year later before we can move in than originally agreed.

We have a construction contract under the building code. Unfortunately, the contract does not say a word about delivery or move-in dates (I know, we were quite naive and foolish to trust the sales representative so much).

All of this is repeatedly explained by missing materials and supply problems, although we actually believe that the builder overcommitted with orders, took on way too much (before everything completely collapses), and now cannot deliver quickly enough.

(Of course, we are also struggling with costs and cannot and do not want to just stand by. Losing the subsidy hit us pretty hard, then of course the general price increases — from June 2023 we will have to pay the full loan plus our current rent, and from November 2023, also default interest at the bank. The kitchen is scheduled for delivery in May 2023, which will bring price increases and storage costs to us, and as I said, the selection appointment hasn’t even happened yet—we don’t even want to know the prices for floor coverings and such.)

What I really want to know from you is: what is the actual current situation regarding raw materials? I have lost track and hear here and there that things have actually stabilized. Sure, it’s not like before (order today, arrive tomorrow), but if you plan smartly, you can usually get your materials on time. It’s no surprise anymore that if I need insulation for a house in four weeks, it will work out.

What can you tell me about this? Is the delivery situation still as bad out there?

Best regards
kati133719 Oct 2022 13:35
Myrna_Loy schrieb:

The problem is also that kati1337’s experiences with a local general contractor in the province are simply too different to be used as an example of “everything goes smoothly” for buyers of prefab houses. Smaller companies have very different working conditions. They usually source their materials in smaller quantities through local building suppliers and are not tied to suppliers and contracts that are only capable of producing and delivering large, consistent volumes. These are completely different logistics chains. It's like comparing apples and oranges.
That’s true, I didn’t mean to make that comparison.
Our local general contractor also once said in a conversation on site that he puts a lot of money upfront to keep our project running as smoothly as possible, and that not every builder can just do that. We are also more like one of his “smaller projects.”
Still, our contractor often says over the phone that the construction business is currently a disaster, and it’s extremely difficult to plan. He often says, “it’s really no fun at the moment,” so it’s not exactly stress-free for us either. But as you say – he probably has more flexibility than a prefab house builder.

I certainly didn’t mean to say “everything should go smoothly,” I just think homeowners here should be better supported than “yeah, it all takes a year longer, alright? Bye!”
Communication is key, and if the homeowner understands where the challenges lie, there might be more empathy. Because as you said – the people building are often not from the construction industry. Understanding the processes and hurdles has to be created first, but you can’t blame the homeowner for that.
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Myrna_Loy
19 Oct 2022 13:38
Nixwill2 schrieb:

I would now like to specifically ask you @xMisterDx and @Myrna_Loy to please stop posting here. Your accusations and overwhelming expertise are just ruining the entire thread! Could you take your know-it-all attitude somewhere else? I’m asking you...

There are actually quite a few useful and constructive comments here that I would like to read and respond to without having to skip over your long off-topic posts, where nobody really knows what the issue is anymore. Seriously, posts like searching for another prefab house supplier, or wondering how foolish someone must be to expect this or that at 10 PM after signing at 9 PM — come on...

I want to hear about real experiences, no more and no less...

Thanks to everyone sharing genuine experiences; that really helps to get an overview!

Please excuse me, but what you dismiss as know-it-all behavior is the experience I have gathered from working with craftsmen and tradespeople. From small 4-person teams to longstanding family-run artisan businesses and some nationwide large companies. Every day, I try to coordinate appointments over the phone for renovation and conversion projects. I hear tradespeople and company owners describe their problems every day.
And prefab house suppliers also work with local tradesmen.
You have received some very good advice here, such as having the contract reviewed by a lawyer, asking the manufacturer again for explanations regarding these significant delays, and obtaining deadlines and appointments in writing—which a lawyer can also help with. But it would also be sensible to allow some understanding for the current situation of trades and manufacturers, instead of insisting that “everything would work better with better planning” and portraying anyone who offers a different viewpoint as an unwanted show-off. I understand the panic given the circumstances, but I don’t understand this kind of reaction.
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Chloe83
19 Oct 2022 13:41
Our shell construction, including the roof covering, front door, windows, and facade, has just been completed. Everything was delivered without any issues, including the windows. The heat pump is already in storage (Viessmann). Thirty-three photovoltaic modules were also installed on schedule, and the tiles and parquet flooring have already arrived. We are building in Rhineland-Palatinate and have had no delays so far.
Nixwill219 Oct 2022 13:43
@Myrna_Loy
Yes, I know, just like back then when I was supposed to sympathize with Habeck and company... 🙄

I don’t want to be rude, but your "experience" HERE is exactly not what I want to hear... And to be honest, I didn’t want to hear it back then either...

So please, I can’t stop you, but please show your so-called great strength by not writing here anymore...

And yes, I know I’ve received great advice here, which is why you should stop writing here too, so the ratio gets even better.
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Myrna_Loy
19 Oct 2022 13:49
Then I wish you the best of luck with your construction. I hope you are a bit more open to advice in real life than you are here. I mean that sincerely, because nowadays, building projects only succeed with a bit of luck and cooperation.
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Myrna_Loy
19 Oct 2022 14:04
One last comment, then I won’t say anything more in this thread 🙂 I don’t want to lecture, but rather encourage different perspectives.

I have been working for the same client in real estate for eight years. Among other things, we collaborate with a law firm specializing in construction law. Until before the pandemic, any problem that couldn’t be resolved through a conversation and a written notice with a deadline was referred to that firm, which didn’t hesitate to take strong legal action quickly and without second thoughts – simply because the construction industry in southern Bavaria was very, very privileged, and that was the only way to move up far enough on the priority list. Pressuring prices and, if necessary, threatening legal action worked well for a long time when you wanted to make progress quickly.

Currently, the focus is solely on negotiating solutions with the companies and documenting the agreements in a legally secure way for future consequences. Everyone is sailing in leaky boats through a storm right now. These are difficult times for construction. For all parties involved, and there is far less malice at play than one might assume. Rather, it’s mostly despair.