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In all divisions, contracts are exclusively made with general contractors for many years. For individual orders, contracts are generally made with fixed prices. Risks of cost overruns in the construction of buildings are contractually limited and transferred to the contractor. We use customised software in a systematic cost accounting system of the company and the individual project and property companies for early identification of business risks.

Credit risks are limited by strict control and early control and delayed payments and potential bad debts are monitored regularly by our software-based finance and accounting unit.

The company pursues a safety-oriented funding strategy, in which generally only medium-term interest rate agreements are made on project basis. The average maturity of fixed interest rates of loans is three years.

The developments of the company take place nationally only in urban centres of major cities. Individual projects, which could threaten the company due to their overall volume, are avoided. The focus on our two business areas - residential and commercial properties - with new developments includes balanced risks. To monitor individual risks the company management works with detailed software-based project planning, such as project status, project network, cost and revenue calculation for date-related evaluations and analyses.

For all building risks, a comprehensive insurance coverage is purchased through a specialised insurance broker. For current technical control and surveillance of buildings, there are contractual agreements with specialised companies.

In developments depending on project and property type, within the scope of our activities, long-term leases are sought. Renting of possibly free areas is done strategically through our branch offices, with external partners. Construction may only be commenced if the pre-defined pre-letting is secured with creditworthy tenants.

To limit marketing risks in the project calculations of the company, the sale prices are determined particularly conservatively, irrespective of whether the property is an existing or newly developed one.