Building material defects & co.: Have the building contract checked before construction begins

Published on: July 01, 2021Categories: Legal mattersTags: , , Reading time: 6 min.
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Nora Wölflick writes about interesting, current topics for the Love & Law Blog at Recht 24/7.

The plot has been purchased, the home is planned and the anticipation of the start of construction is growing. But before things can start, the building contract must be signed. A comprehensive contract review is mandatory before signing. After all, vague wording, gaps in the content or bottlenecks in the procurement of materials can quickly lead to unwanted additional costs. This article explains what you need to look out for when drafting a construction contract, where you can have a contract checked and what a check costs.

What is a construction contract?

The legal definition of a building contract can be found in § 650a BGB. It states:null"A construction contract is a contract for the construction, restoration, removal or conversion of a building, an outdoor facility or a part thereof."nullThe special feature: As the client, you have the choice of which contractual basis you want for your construction project - and on which generally applicable framework conditions the contract should be based.nullA VOB contract is based on the German Construction Contract Procedures (Vergabe- und Vertragsordnung für Bauleistungen). A VOB contract is usually used if the construction project is complex and time-consuming. The BGB contract, on the other hand, is based on the German Civil Code. It is a special form of contract for work and services. The subject of the contract can be the new construction of a house, a repair or the conversion of a building.

What content should be included in a construction contract?

A construction contract serves to regulate the construction processes, sets deadlines for completion and defines which building materials are to be used. Accordingly, the contract must contain information on the contracting parties, the construction work, the construction period and information on acceptance and remuneration.nullIn addition, the so-called building specification is one of the components. It defines which services a company must provide to the client and includes:

  • General key data of the building to be constructed
  • Floor plans, views and sections
  • Information on the energy and sound insulation standard
  • a description of the equipment in the electrical, sanitary and outdoor areas
  • Information on planning services, the expected work on the property and acceptance
  • Information on the materials and raw materials used

The more detailed the building specification is, the better the craftsmen can work according to your wishes. If the work deviates from the contract or there are defects, a precise building specification gives you good arguments to take legal action against them.nullAs the client, you should negotiate the price for the agreed services before signing the contract. A reliable all-inclusive price gives you planning security. Important: Pay attention to costs not included! These often arise due to assumed subsoil conditions, required insurance or the supply of electricity and water to the construction site.

Does a contract review make sense?

Even if the above information is included in the construction contract, it may contain gaps or cost traps. Check the finished document carefully before signing it.nullIf your construction project is not completed on time, for example, you may be entitled to payment of a contractual penalty. However, only if an effective clause has been agreed in the construction contract.nullThe wording is also important. Seemingly innocuous text passages, such as "technical changes" or "comparable", can lead to the construction work not being of the quality you desire upon acceptance.nullAs a building contractor, a contract review is very important. For example, if you are unable to carry out a contract due to a current shortage of building materials, you may be liable to a contractual penalty. As part of a contract review, content is optimized so that you are protected from any additional payments.

Have your construction contract checked by a lawyer - processing in 24 hours

Fixed price 219,00 EURO

Due to a shortage of building materials and increased raw material prices: Can building contracts be changed?

The current shortage of building materials poses major problems for trade businesses and building owners. In current contracts, the material quantities and costs are usually fixed for the long term. What happens if these contract terms cannot be met due to a shortage of building materials?nullConstruction companies are dependent on the goodwill of the client. Changes to the contract are only possible with the client's consent. This is set out - together with the changes - in a supplementary agreement. An agreement on costing with daily prices on proof would be conceivable. Alternatively, the client buys and pays for the materials himself. If completion is delayed due to a shortage of building materials, the craftsman and client can redefine the date of completion in a supplementary agreement.nullAs the client, on the other hand, you have the right to order changes to the contract without the consent of the construction company. However, also require:

  • the termination of partial services
  • the agreement of additional services
  • a reduction in the quantity of certain building materials
  • an extension of the construction period

a corresponding supplementary agreement.nullBuilding law initially provides for a joint attempt by the client and building contractor to reach agreement on the desired changes and their costs within 30 days (Section 650b BGB). A willingness to compromise is required here. Ideally, you should submit your change requests and then receive a corresponding supplementary offer.nullIf no agreement can be reached, the client may order the change in text form (Section 650c (2) BGB). However, he must be able to prove that the construction company has received the previous change request. Important: If the client issues an order, the construction company can demand advance payments of up to 80 percent for services already rendered.

Where can I have a building contract checked?

It is difficult for laypersons to fully examine a construction contract. A legal advisor can provide valuable assistance. They will check whether the contract is complete and complies with legal requirements. In addition, a lawyer will record your individual wishes in the contract in a legally secure manner. You can find out whether your construction contract complies with the law in our contract review.nullHowever, a building contract does not necessarily have to be checked by a lawyer. Nationwide associations (e.g. the Bauherren-Schutzbund), the consumer advice centers of the federal states and the TÜV also offer a corresponding check.

What does a contract review by a lawyer cost?

In relation to the construction costs, the costs for a review of the construction contract are low. For example, if you want to build a house and have the contract checked by a lawyer, you can expect costs of around 1,000 to 2,000 euros.nullThe exact amount of the costs depends on the amount of the business fee. This is determined on the basis of the value of the matter. Depending on the scope and difficulty of the examination, the fee is multiplied by a factor of 0.5 to 2.5. In addition, there is a lump sum for postal expenses of 20 euros and the statutory VAT.nullThe costs for an audit by a consumer advice center vary depending on the federal state. A contract review in Mecklenburg-Western Pomerania, for example, costs around 70 euros, while in Baden-Württemberg it costs just under 360 euros.

Check the building contract: The most important points in brief

  • As the client, make sure that your wishes are sufficiently taken into account when drawing up the contract. Are they formulated precisely enough? Does the construction contract contain a detailed construction description? In addition to the developer's tasks, the latter must also include the prices for the construction services as well as information on the materials used and acceptance.
  • Carefully review the construction contract before signing it. A legal advisor will optimize the general contents of the contract according to your wishes and check the construction contract for incorrect clauses. In addition, a lawyer will point out hidden cost traps as part of the review.
  • Construction law grants you the right to subsequently amend a construction contract. You discuss any desired changes to the contract with your contractual partner. Ideally, you will reach an agreement and agree on a corresponding supplementary offer. Otherwise, you can order the changes in writing after 30 days.

Have your construction contract checked by a lawyer - processing in 24 hours

Fixed price 219,00 EURO