Construction phase

Construction Phase - The construction phase is the period from the groundbreaking ceremony to the completion and acceptance of a building. It encompasses all stages of construction-from excavation and structural work to interior finishing and final acceptance. The construction phase forms the core of the construction project and follows the planning and permitting phase.

Process and Typical Phases

The construction phase of a residential building is divided into several sequential phases:

Construction Phase	Typical Duration	Key Milestones
Earthwork & Foundations	4-8 weeks	Excavation, floor slab/foundations, waterproofing
Structural Work	3-5 months	Load-bearing walls, ceilings, roof truss, topping-out ceremony
Roof & Facade	6-10 weeks	Roofing, windows, facade insulation
Building Services	8-12 weeks	Electrical, plumbing, heating, ventilation
Interior Finishing	3-5 months	Plaster, screed, tiles, flooring, doors, painting
Exterior Work	4-8 weeks	Driveway, patio, landscaping
Total	12-18 months	Completion and final inspection

Earthwork and Foundations: Excavation of the building pit, foundation or floor slab, drainage, and waterproofing-for buildings with basements, this also includes basement construction. This phase is highly weather-dependent and often takes longer than planned.

Shell Construction: Erection of load-bearing walls, ceilings, and the roof structure. The completion of the shell is traditionally celebrated with a topping-out ceremony-a milestone that brings joy to both the homeowner and the tradespeople alike and marks an important date for the first progress payment.

Building Services: Installation of electrical, plumbing, and heating systems, as well as ventilation and photovoltaic systems if applicable. Coordinating the building services trades is often a bottleneck in the construction schedule-especially when different subcontractors are waiting for one another.

Interior finishing: Plastering and screed work, drywall installation, tiling, flooring, painting, and door installation. This is the most visible phase for the client, during which the character of the building takes shape.

Payment Schedule and Progress Payments

The construction phase is closely linked to the payment schedule. In property development contracts, the payment schedule is governed by the Real Estate Brokerage and Property Development Ordinance (MaBV): Progress payments may only be called for once construction progress has been achieved and against appropriate security. In general contractor contracts, § 650m BGB stipulates that progress payments must correspond to the value of the work completed and that the contractor must provide a 5% completion guarantee. We recommend linking the payment schedule to performance milestones-not calendar dates-to avoid payments without corresponding consideration.

Risks and Typical Problems

The construction phase entails various risks that affect costs and the schedule:

• Construction Delays: Weather-related interruptions, material shortages, or capacity shortfalls among tradespeople can jeopardize the completion date. Realistic buffers of 10-20% of the planned construction time are advisable.
• Cost increases due to change orders: Unforeseen measures, site conditions, or design changes. With lump-sum contracts, the risk is limited; with unit-price contracts, the client bears the quantity risk.
• Coordination problems: Poor coordination between trades leads to downtime and quality issues-particularly common during the transition from building services to interior finishing.
• Construction defects: Execution errors that go unnoticed during the construction phase result in subsequent repair costs (see: Construction defects).
• Contractor insolvency: The risk of the contractor’s default during the construction phase can be covered by construction completion insurance or a directly enforceable guarantee.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that building owners in the Nuremberg metropolitan region have the construction phase monitored by an independent construction supervisor or construction consultant. Quality control throughout the construction process-for example, by an expert from TÜV Süd, DEKRA, or an architectural firm-typically costs 3,000-6,000 euros for a single-family home and uncovers hidden defects before they become costly. The inspection usually includes visits during critical phases (waterproofing, shell construction, roofing, building services) as well as a final acceptance inspection.

In Nuremberg and the metropolitan region, tradespeople are in particularly short supply-leading companies in the electrical, plumbing, and heating sectors are often booked up 6-12 months in advance. Also, plan for a buffer of at least 10-15% in your budget and schedule. Document all milestones and partial inspections in writing, and for larger projects, agree on contractual penalties for delays (§ 339 BGB)-a maximum of 5% of the contract amount is standard and legally sound.

Frequently Asked Questions

How long does the construction phase of a single-family home take?

A conventionally built single-family home typically takes 12-18 months from excavation to move-in. Prefabricated homes with a wood-frame construction can be ready for occupancy in 6-10 months, as the wall elements are prefabricated in the factory and assembly on the construction site is significantly faster. The actual construction time depends on the size of the building, soil conditions, weather, and-particularly relevant at present-the availability of tradespeople. In the Nuremberg region, we are observing a trend toward longer construction times due to the persistently high level of construction activity; construction delays of 20-30% compared to the original schedule are not uncommon.

What insurance do I need during the construction phase?

During the construction phase, the following insurance policies are recommended: Builder’s liability insurance (strongly recommended-protects against third-party claims resulting from construction site accidents or damage to neighboring properties), Construction work insurance (protects your own building from weather-related and vandalism damage), Fire insurance for the building shell (often included free of charge in home insurance) and accident insurance for construction helpers (for work you do yourself or neighborly assistance - mandatory registration with BG BAU). If you’re using external financing, some banks also require construction completion insurance or a completion guarantee.

Can I still make changes during the construction phase?

Change requests are generally possible, but the later they come, the more expensive they become. Planning changes after construction begins usually require addenda to the construction contract and can significantly delay the schedule. We recommend agreeing to all change requests in writing and clarifying the costs in a binding manner before placing the order. As a rule of thumb: Changes before construction begins cost planning time; changes during the shell construction phase cost money; changes during interior finishing cost both. Structural changes (moving walls, enlarging openings) may also require a new or amended building permit-expect this to add several weeks to the schedule.

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