Building a house How to go about building a house in Switzerland?

A construction project generally consists of five phases: the pre-project, the building application, the implementation plan, the implementation, and the acceptance of the work. Each of these phases involves specific tasks and objectives that must be achieved for the project to be successful.

1st phase: pre-project

The pre-project phase marks the start of building a house and is the most important phase, as this is when you plan the course of the entire project. Careful planning in this phase is crucial. Subsequent changes can be costly and time-consuming. In this phase, you decide how you want to carry out the construction, including, for instance, whether you want to work with architects. The latter will then draw up a detailed specification sheet based on your ideas, giving the project a clear framework. At the end of the first phase, an initial cost estimate is made, which should be around 15 to 20 percent accurate. You can then estimate whether the project will stay within budget.

2nd phase: building application

Once you as developer have approved the preliminary project, the architectural firm you’ve commissioned will draw up detailed plans and fill out forms for the construction project. You and the architect sign the documents and submit them to the responsible authority. This is known as the building application. The authority reviews it and arranges for a public announcement. This allows neighbors, for example, to find out about your building plans and, if necessary, raise objections.

3rd phase: implementation plan

While the building application is being processed, your architects develop implementation plans, which include an exact schedule for all the construction work. Based on these plans, you can expect a realistic cost calculation and can hire contractors to carry out the work.

4th phase: implementation

Construction work can only begin once a written building permit has been issued by the relevant authority. Depending on the canton, you have a certain window of time after receiving your approval to start building, usually two years. The coordination and monitoring of activities on site is usually carried out by the construction management, while your architects check contractors’ invoices. As developer, you’re well advised to regularly check the progress of the construction work yourself.

5th phase: acceptance of the work

During the acceptance of work, the house is inspected in detail. Defects are recorded and a decision is made on how to proceed. Delays may occur in the event of serious defects. The final invoice will be issued after acceptance.

You cannot build without a construction permit. It is a requirement in particular for new buildings, major renovations, extensions or demolitions. There are only very few minor building projects (such as “paintbrush renovations”) that are allowed without a permit. You can obtain the required information on building regulations from the relevant construction permit authorities. They will also tell you whose professional help you should get to submit the building application. Architects or civil engineers usually take this on for larger projects, while master craftspersons can be considered for smaller projects.

The permit is linked to the commencement of construction work. Depending on the canton, you have different amounts of time for this. Once this period has expired, the permit expires, and you will only get a new one by submitting a new building application.

Anyone who builds without a permit or builds something other than what was applied for exposes themselves to major risks. In the case of (re)constructions without a permit, the building authorities can take measures that range from stopping construction, prohibiting use and demolition. They may even impose severe financial penalties. However, the consequences can be comparatively mild if a retrospective permit is applied for and granted.

Choosing the right construction partner is the basis for successfully building house. You have the following options in particular: working with an architect, a general contractor (GC) or a total contractor (TC). Each option has its pros and cons. We recommend you review the various options based on your preferences to find the right solution for your construction project.

Architectural project

This option is suitable for individually designed houses or apartments but is more costly and time-consuming. The cost estimate outlines the financial framework, with the builder usually bearing the risk of any additional costs. Architects take care of the planning, while various construction companies carry out the work. We recommend commissioning the architectural firm in phases, defining certain milestones and setting out all the key points in a written contract.

General contractor

Here, the general contractor (GC) takes over the construction planning and execution according to the architect’s specifications. The builder has less influence on the selection of subcontractors but appoints the architect. The general contractor is usually responsible for any cost overruns.

Total contractor

With this option, a general contractor is the developer’s sole contact and contractual partner. The contractor is responsible for drawing up the design, planning and execution, selects the subcontractors and is generally responsible for the costs.

Take care of the financing for your building project as early as possible. We can facilitate mortgage or construction financing as early as the land purchase stage. However, certain restrictions must be observed when purchasing building land. As a rule of thumb, the developer should provide half of the financing for the building land and the bank the other half.

Loan applications are assessed on a strictly individual basis and are subject to certain conditions. These may include a higher proportion of equity.

When building a house, you should insure yourself against risks to preempt any nasty surprises:

Financial insurance

To reduce the risk of advance payments not being used for construction or of participating companies becoming insolvent, check the creditworthiness of your contractual partners. Adhere to the “step by step” rule: Every payment should be matched by a corresponding equivalent value rendered on the building site.

No mortgage agreement before the land has been purchased

You should not finalize the mortgage agreement or fix the interest rates before buying the land. Otherwise, if you signed the mortgage contract and if unforeseen events cause the purchase to fall through, you would still have to pay interest on a property you did not buy.

Construction delays

Prolonged delays on the building site can lead to financial difficulties: higher costs, the double burden of building interest and paying rent for longer, up to and including the mortgage lender canceling the mortgage. What’s more, the entire planning process can suffer.

Construction defects

Defects during construction can be caused by inferior materials, faulty workmanship or a lack of professional expertise. Many defects can be avoided as early as the shell construction stage. Developers should check whether contractors have paid attention to sealing against moisture, protecting the insulation material, allowing sufficient drying time and correct ventilation. Complain about any defects immediately, but at the latest during the thorough building inspection, where it is best to consult building experts who have the know-how on quality standards and technical norms. Also check all ancillary rooms such as the cellar and garage and the functionality of windows, doors, sockets, locks, appliances and ventilation systems. If possible, carry out the inspection during the day, as it is more difficult to detect defects in artificial light.

Builder’s lien

Protect yourself in the clauses of the contract with your general contractor against the risk of the contractor failing to meet their financial obligations to tradespeople and then these tradespeople in turn registering liens on your property in the land registry. You can prevent this with a written guarantee.

What you need to build a house depends very much on your own wishes and expectations. However, with thorough planning and the right construction and financing partners, you can master this project. You can choose between several options for planning and implementation. An important basis for your decision is being clear about your budget and how you want your building project to turn out.