ᐅ Increase in Wood Prices – Order Confirmation Already Signed
Created on: 13 Apr 2021 07:46
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lisa-kessler
Hello dear forum members,
We signed the order confirmation for our house back in August 2020.
In October of this year, we will sign the construction contract, and in November the foundation slab will be laid.
The site work will start around May.
The house assembly is scheduled for April next year.
Now we have heard about significant price increases in the timber sector.
Can we expect a price increase despite the signed order confirmation?
Wording of the order confirmation: "House: March/April 2022, depending on weather conditions and completion of preliminary work.
The final construction sum will be fixed in the construction contract after the approval planning and selection of finishes.
In case of financing refusal by the lending institutions, the order confirmation expires without any costs."
We signed the order confirmation for our house back in August 2020.
In October of this year, we will sign the construction contract, and in November the foundation slab will be laid.
The site work will start around May.
The house assembly is scheduled for April next year.
Now we have heard about significant price increases in the timber sector.
Can we expect a price increase despite the signed order confirmation?
Wording of the order confirmation: "House: March/April 2022, depending on weather conditions and completion of preliminary work.
The final construction sum will be fixed in the construction contract after the approval planning and selection of finishes.
In case of financing refusal by the lending institutions, the order confirmation expires without any costs."
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MM1506zzzz13 Apr 2021 08:371. And what if a detail of the house needs to be changed during the building permit / planning permission process?
2. I find it hard to believe that you have already fixed the prices for all options and contingencies of the selection process...
2. I find it hard to believe that you have already fixed the prices for all options and contingencies of the selection process...
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lisa-kessler13 Apr 2021 08:401. The building permit has already been approved.
2. Not everything, but if I choose, for example, a different bathtub than the one included as standard, I doubt they can charge me an extra €10,000 (approximately $11,000)...
Or am I mistaken? 🙂
Maybe I’ll just ask the house manufacturer!
2. Not everything, but if I choose, for example, a different bathtub than the one included as standard, I doubt they can charge me an extra €10,000 (approximately $11,000)...
Or am I mistaken? 🙂
Maybe I’ll just ask the house manufacturer!
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Pinkiponk13 Apr 2021 08:50lisa-kessler schrieb:
Maybe I'll just ask the house manufacturer!Better not. You might be stirring up trouble. We're in the same situation as you, and even though we think a lot about it, we prefer not to ask. It almost feels like an invitation to raise the price. :-(L
lisa-kessler13 Apr 2021 08:55Pinkiponk schrieb:
Better not. You might be stirring up a hornet’s nest. We are in the same situation as you, and even though we think a lot about it, we prefer not to ask. It almost feels like an invitation for a price increase. :-(That’s exactly what my partner says too. My hope still lies with the order confirmation, where the prices are fixed.
We also have a building specification and scope of services, and we know exactly which fixtures, etc., are included as standard.
The products are so high-quality that we won’t have much to customize.
The house manufacturer is local and well-known, and my partner says that if anything, they should come to us.
They also know that we are financially stretched to the limit and cannot take on any more.
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Stefan00113 Apr 2021 08:59What is the legal context? A confirmation of order for what purpose? And why do you need a contract for work?
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Alessandro13 Apr 2021 09:00If you have already signed the contract that includes the prices and the document does not contain clauses such as "prices are subject to change" or similar, you are on the safe side.
For large projects, bids are often awarded based on the "best price" principle, meaning the lowest bidder wins the contract.
The construction project may take years to reach the execution phase of the respective trade. However, the submitted price is binding, and the contractor bears the risk of any material price increases.
For large projects, bids are often awarded based on the "best price" principle, meaning the lowest bidder wins the contract.
The construction project may take years to reach the execution phase of the respective trade. However, the submitted price is binding, and the contractor bears the risk of any material price increases.