ᐅ Increase in Wood Prices – Order Confirmation Already Signed
Created on: 13 Apr 2021 07:46
L
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."
P
Pinkiponk13 Apr 2021 09:05lisa-kessler schrieb:
That’s exactly what my partner says too.
My hope still lies with the contract confirmation, where the prices are fixed.
We also have a building and performance specification and know exactly which fittings, etc., are included as standard.
And the materials are of such high quality that we won’t have much to choose from.
The house manufacturer is local and well-known… and my partner says they have to accommodate us.
They also know that we are at our financial limit and can’t take on any more debt. I understand you very well and I’m not as calm as your partner either. But beyond some temporary relief, you likely won’t get much more from your question to the builder, whereas in the other case, it would cost you money.
I don’t know your financial situation, but in the worst case, I assume any price increase would be within a range you could cover with a very small consumer loan, without a major credit check, or by initially postponing external landscaping and similar items. My favorite example of what to postpone is usually the new kitchen, which can often be purchased second-hand in excellent condition.
I hope my comment isn’t intrusive; my intention is to ease your concerns.
Unfortunately, I don’t understand the connection between the order confirmation and the yet-to-be-established contract for work.
Isn’t it usually the case that a contract for work (including all reservations and agreements) is signed first, followed by an order confirmation or contract acceptance?
Normally, at least with all major prefab home manufacturers, there is also a fixed-price guarantee lasting anywhere from 12 to 24 months, for example.
So, what exactly is the “order” you gave that was confirmed? And what still needs to be signed in the contract for work?
Isn’t it usually the case that a contract for work (including all reservations and agreements) is signed first, followed by an order confirmation or contract acceptance?
Normally, at least with all major prefab home manufacturers, there is also a fixed-price guarantee lasting anywhere from 12 to 24 months, for example.
So, what exactly is the “order” you gave that was confirmed? And what still needs to be signed in the contract for work?
L
lisa-kessler13 Apr 2021 10:59Stefan001 schrieb:
What is the legal context? A confirmation of order for what? And why do you need a construction contract?What do you mean by context?The confirmation of order was requested by the home builder as a guarantee that we will build with them and so they effectively reserve the date for us.
All prices are fixed in it except for those related to the selection of finishes.
L
lisa-kessler13 Apr 2021 11:00Stefan001 schrieb:
What is the legal context? A confirmation of order for what? And why do you need a contract for work?The contract for work also finalizes the selection of materials and finishes. By that point, the interior walls and everything else must be finalized.
We might still be able to make changes to those until then.
With the contract for work, the house then goes into production.
It also specifies what we will do ourselves, etc.
T
T_im_Norden13 Apr 2021 11:14This is all a bit unclear.
Did you receive a quote from the company with prices, accept it, and then get an order confirmation that lists everything again with prices?
If so, you already have a contract. Why would an additional construction contract need to be concluded, and what services should it include?
Did you receive a quote from the company with prices, accept it, and then get an order confirmation that lists everything again with prices?
If so, you already have a contract. Why would an additional construction contract need to be concluded, and what services should it include?
A
Alessandro13 Apr 2021 13:19I see it the same way. The order has been placed, so the contract is concluded.