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
W
WilderSueden
19 Oct 2022 13:13
Myrna_Loy schrieb:

How anyone can start building in 2022 and expect everything to be completed in less than a year is almost denial of reality.

I can’t agree with that. We have a project in the development area where everything is running smoothly. In spring, the client briefly mentioned that timber for the roof frame was hard to get, but two weeks later it was done. And the windows were installed straight away. The solar panels went on shortly after, the heat pump is already installed... it will definitely be up and running this year. Another house project is also progressing quickly through the trades.
So it is possible when you plan carefully and think ahead. Good back-office work isn’t limited to small companies either; a larger company should find it much easier to reorganize teams and stay operational even if 5% of staff are absent. Or to be prioritized by manufacturers due to large volume orders. I still maintain that while builders do face shortages of materials, workers, and tradespeople, solid management can alleviate much of these challenges, and poor planning can just make things worse.
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xMisterDx
19 Oct 2022 13:14
filosof schrieb:
One of the main reasons to choose a prefabricated house provider was – at least for me – the predictability and fixed schedule. I would also be disappointed if the project suddenly got delayed by half a year and would like to know the exact reason for this, or whether customers of other providers face the same difficulties, to better assess the whole situation. As you already said, there can be various causes for this current situation, for which the construction company is not responsible. But it could also be that they messed up, right?

I can understand the desire to find out, but that’s not going to happen; such a request is unrealistic. Why would the general contractor admit, “Yes, the materials were available, but we messed it up?” They simply can’t say that, if only because it would make them legally vulnerable under the contract.
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xMisterDx
19 Oct 2022 13:16
WilderSueden schrieb:

I can’t say that for sure. We have one in the development area where everything is running smoothly. In spring, the owner briefly mentioned there was a shortage of timber for the roof structure, but two weeks later it was resolved. The windows were installed immediately after. The photovoltaic system went up shortly after, and the heat pump is already installed… it will probably be operational this year. Work is progressing quickly on another house as well.
(...)

So you have one… and it started in spring.
For us, things went quite well too; we started in May.

For those starting now, it’s not going well at all… a few months really make a big difference, believe it or not.
As I said before, any forecast beyond winter is impossible. Just one very cold January can ruin everything because the gas reserves won’t be sufficient.
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SaniererNRW123
19 Oct 2022 13:18
kati1337 schrieb:

In the end, only what you have signed by both parties counts. It's hard to help if you don’t know the exact wording of the contract. But if there is nothing stated about construction start or completion time, you probably don’t have a strong position.
Tolentino schrieb:

If what @SaniererNRW123 wrote a few posts ago is correct, then having no description at all might be better than a vague one that allows the contractor to adjust the construction period almost dynamically.

I refer to the Construction Contract Law §650k. Construction start and construction period are legally mandatory. If both are missing and nothing was specified before the contract (e.g., in the service description, building specification, etc.), you should immediately consult a lawyer. Then the main contractor (GC) is in a weak position, not the client. Because the GC is severely violating the statutory disclosure requirements. For example, if the construction period is missing, the GC’s obligation is immediately due!
If a building specification is missing, the GC likely bears any additional costs. If timelines are missing, the GC may be liable for damages if they delay the schedule, and so on.

Go to a lawyer. Immediately!
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Myrna_Loy
19 Oct 2022 13:19
I believe the original poster will only get a meaningful assessment if they find, for example, a Facebook group where homeowners of the same manufacturer exchange information.
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xMisterDx
19 Oct 2022 13:19
In summary:
If trust in the construction company is so low that you suspect intentional wrongdoing or negligence because the deadlines are as they are, then it is best to step back and look for another contractor, as long as the contract has not yet been signed.