Construction companies cannot rely on material price increases to deviate from the agreed fixed price of a construction project. This was decided by the Palatinate Higher Regional Court (AZ: 5 U 188/22). In this case, a married couple took legal action against a construction company that did not want to carry out the agreed construction of a solid construction house at a fixed price of around 300,000 euros, but instead demanded around 50,000 euros more due to material price increases.
However, the couple did not see the point of paying the extra 50,000 euros. They therefore instructed the construction company to start the construction work at the agreed lump sum price. However, the construction company refused. The couple then commissioned another company, which also demanded more than 300,000 euros for the construction of the solid construction house. The couple then sued the first construction company to reclaim the additional costs incurred.
The couple was ruled right by the Palatinate Higher Regional Court; the construction company was put in its place. Although there was a corresponding price adjustment clause in the construction contract, this was invalid. It disadvantaged customers "unreasonably". The Palatinate Higher Regional Court made it clear that builders are dependent on the agreed fixed price, as even small price increases can lead to considerable financial burdens for them.source: olgzw.justiz.rlp.de
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