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
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
One can say that construction contractors and most tradespeople, in the last 5-10 years before the COVID crisis, were more or less able to choose their prices and customers. In other words, those who did not build up a solid financial cushion during this boom period lacked proper business caution. General contractors like Kati’s and others (there are examples) show that it is indeed possible to succeed if one has managed their business wisely.
And yes, of course, it’s not easy, and yes, one can also find themselves in difficult situations through no fault of their own. But the question is how you then deal with your customers.
Then there are companies that try to find solutions. And others that simply postpone appointments. I think that’s what drives many homeowners to despair—the feeling of being left hanging.
For example, my plumber would have installed a heat pump that I sourced myself when it became clear that his wholesaler couldn’t deliver it. I wasn’t able to get it either, but he would have done it.
And yes, of course, it’s not easy, and yes, one can also find themselves in difficult situations through no fault of their own. But the question is how you then deal with your customers.
Then there are companies that try to find solutions. And others that simply postpone appointments. I think that’s what drives many homeowners to despair—the feeling of being left hanging.
For example, my plumber would have installed a heat pump that I sourced myself when it became clear that his wholesaler couldn’t deliver it. I wasn’t able to get it either, but he would have done it.
kati1337 schrieb:
That's true, I didn’t want to compare them like that either.
Our local general contractor (GC) also mentioned during a conversation on site that he has to front most of the costs himself to keep our build running as smoothly as possible, and that not every contractor can just do that easily. We’re actually one of his "smaller projects."
Still, our GC often says on the phone that the construction business is currently a disaster and it’s extremely difficult to plan. He frequently says, “It’s really no fun at the moment,” so things aren’t exactly going stress-free for us either. But as you said – he probably has more flexibility than a prefab home builder. Our tradespeople are struggling quite a bit as well. The heating engineer ordered all our components back in the summer (installation is scheduled for January!) and they’re arriving gradually, so we have space to store everything. He no longer orders everything for the same date because something always ended up missing before.
Also, we had to pay upfront for materials in some trades. Windows, insulation, kitchen appliances (I can’t think of anything else at the moment). So far, no one has run off with our money ;-) but to be honest, it did make me a bit uneasy.
H
hauskauf198719 Oct 2022 20:30Well, regarding @Myrna_Loy and @xMisterDx, I have nothing more to add...
The prefab house manufacturer is responsible (!!!) Why is this company being defended so strongly here? As a buyer, why should they care if there are serious issues?
@OP, every material except bricks and heat pumps is currently available without problems. Don’t let anyone convince you otherwise... I work for a large construction company and am probably closer to the situation than 99% of the posters here.
I can’t comment on your contract.
The prefab house manufacturer is responsible (!!!) Why is this company being defended so strongly here? As a buyer, why should they care if there are serious issues?
@OP, every material except bricks and heat pumps is currently available without problems. Don’t let anyone convince you otherwise... I work for a large construction company and am probably closer to the situation than 99% of the posters here.
I can’t comment on your contract.
filosof schrieb:
So, we ordered our prefab house in November 2020, and the (prefab) basement at the end of December 2020. It was clearly communicated from the start that the basement must be completed by April 2023 so the house can be assembled in May, June, or July. The manufacturer committed to this schedule. Accordingly, the technical selection appointment is taking place now in November, and the design selection will follow in early January.
When I asked if this could be brought forward due to the current delivery situation, the project manager reacted quite calmly.
They said everything is available for delivery and they can probably start assembling as early as May.
I assume that things like the heat pump, which are already confirmed, are or will be ordered in time.
At least I hope so—I can’t really change anything now... A quick correction upfront: the order was actually in 2021, not 2020.
Last week, the preliminary schedule was provided:
- Design selection, week 1
- Receipt of all documents between week 51 (2022) and week 2
- Construction site meeting, week 3
- Point of No Return (no cost-neutral plan changes possible anymore)
- Structural calculations, week 5
- Basement order, week 6
- Material orders, week 7
- Site excavation, weeks 10/11
- Surveyor and earthworks inspection, week 12
- Basement construction, weeks 13/14
- Backfilling from week 15 onward
- House assembly, week 18
So far, it currently looks like there won’t be any delays. I’ll keep my fingers crossed...
Our friends who are also building are experiencing exactly the same situation.
They signed their contract in October 2021 without a specified start or completion date for construction, which, as mentioned, is legally not permitted. The law requires these details to be provided.
The bottom line is that after a year of back-and-forth (they wanted to be "already inside" now, as their sales representative kept telling them), they are only at the earthworks stage. When the company will finally start assembling the house is still unknown. The inspector has to approve the basement first, and only THEN can production begin...
My impression is that prefab house companies during their peak just accepted every order they could get. Now they are working through the backlog. New orders are no longer coming in due to the high interest rates, among other factors.
If I were affected, I would consult a lawyer to point out the missing construction start dates and use every possible means to push for prompt construction.
They signed their contract in October 2021 without a specified start or completion date for construction, which, as mentioned, is legally not permitted. The law requires these details to be provided.
The bottom line is that after a year of back-and-forth (they wanted to be "already inside" now, as their sales representative kept telling them), they are only at the earthworks stage. When the company will finally start assembling the house is still unknown. The inspector has to approve the basement first, and only THEN can production begin...
My impression is that prefab house companies during their peak just accepted every order they could get. Now they are working through the backlog. New orders are no longer coming in due to the high interest rates, among other factors.
If I were affected, I would consult a lawyer to point out the missing construction start dates and use every possible means to push for prompt construction.
Hunsrückblick27 Dec 2022 13:07I was reading along out of interest. Two individuals here stand out as apparently doing lobby work for home construction companies. Some of you may have already noticed this from the comments. I can only speak from our own experience. We are not building a prefabricated house but have had similar construction time experiences. Our company signed about 1,000 more contracts in 2021 than in 2020 (insider information). This inevitably causes the whole operation, no matter the company size, to slow down. The reason lies in the expired KfW 55 subsidy program. Many people signed house contracts to take advantage of the subsidies.
Due to a lack of capacity in the planning phase (no additional architects, etc. were hired), this situation eventually leads to extended planning times and so on. Rumor has it that a site manager is responsible for about 50 houses at times. Although we obtained all permits just in time, and the land was already registered in the land registry before the house contract, and we are paying cash, so far they have only managed to complete the foundation cushion. Greed was certainly a significant reason why construction times have gotten so out of control. COVID-19 and, of course, various supply bottlenecks have only compounded the situation.
Due to a lack of capacity in the planning phase (no additional architects, etc. were hired), this situation eventually leads to extended planning times and so on. Rumor has it that a site manager is responsible for about 50 houses at times. Although we obtained all permits just in time, and the land was already registered in the land registry before the house contract, and we are paying cash, so far they have only managed to complete the foundation cushion. Greed was certainly a significant reason why construction times have gotten so out of control. COVID-19 and, of course, various supply bottlenecks have only compounded the situation.
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