German construction law follows its own rules: VOB/B, obstruction notices, strict notification deadlines. Those who do not know them lose money. We secure your contract before you sign and enforce payment after the work — across Germany, in English.
Your route to payment
Demand letters, securities, payment claims — consistently, until the money is in your account.
Defence against inflated defect lists and substitute performance costs.
Reviewing the validity of penalty clauses and documenting obstructions caused by the principal.
Enforcing acceptance (Abnahme) or its legal effects when the principal delays.
Valuing and enforcing payment for scope changes — the party that documents wins.
Recovering security retentions after the deadlines have passed.
In Germany a construction contract is governed by the Civil Code (BGB) or additionally incorporates the VOB/B standard conditions. VOB/B can be advantageous — but it imposes duties foreign companies often do not know:
Delays caused by the principal must be notified in writing immediately — otherwise they are hard to rely on later.
A contractor who fails to raise concerns in writing may be liable for others’ mistakes.
For buildings generally 4 years under VOB/B versus 5 years under BGB — the difference matters for defect claims.
The formal requirements for the final invoice (Schlussrechnung) can block additional payments.
Warranty for buildings
The contractor may demand security for payment from the principal (e.g. a bank guarantee) — and if it is not provided in time, may suspend the works and even terminate the contract while keeping all claims. One of the most effective levers in German construction law.
How sec. 650f BGB works
Cannot be excluded by contract (sec. 650f (7) BGB). Exceptions: consumers under a consumer construction or property developer contract and public bodies that cannot become insolvent (sec. 650f (6) BGB).
A security mortgage for earned remuneration can be registered on the principal’s property.
Upon acceptance payment falls due and the burden of proof for defects shifts to the principal. We enforce formal or implied acceptance.
In B2B matters we consistently add statutory default interest and recovery costs to the claim.
The HOAI is the German fee scale under which architects and engineers calculate their remuneration towards their clients. We support design offices in enforcing HOAI-based fees and review design contracts and service phases — and advise principals who want an HOAI invoice verified.
From securing site documentation to the sec. 650f BGB security demand — the sequence that most often unlocks payment.
With analysis: was there acceptance, is the final invoice verifiable, what objections does the principal raise. Then usually: a demand letter with a deadline, a security demand under sec. 650f BGB and — if needed — a lawsuit. Often this sequence alone unlocks payment.
Not “simply” — an unauthorised stoppage can create claims against you. The safe route runs through written demands and sec. 650f BGB: demand security, suspend the works and, if necessary, terminate while keeping your claims.
No. Case law limits penalties in standard terms — generally to about 5% of the contract sum with daily caps. A penalty may also fail where the delay results from obstructions caused by the principal — which is why the obstruction notice matters so much.
Payment claims generally become time-barred three years from the end of the year in which they fell due. These are general rules — depending on the contract and type of claim the period and its start may differ (e.g. from acceptance). Do not wait: the fresher the documentation, the stronger your position.
We know the problems of construction and craft businesses not only from case files — Dr Artur Barczewski cooperates with the Handwerkskammer Frankfurt (Oder) – Region Ostbrandenburg and gives lectures for its member businesses.
An installation company had performed its work, but the principal delayed payment. Our plan: analysing contract and documentation, a lawyer’s demand letter with a deadline and tough negotiations with full readiness to litigate.
“A German general contractor owed us a six-figure amount. We got a clear plan, tough negotiations — and the money before trial.”
Sylwia Heller, MHR Montage GmbH Client testimonial
Type of remuneration, Bausoll, quantities over 10 %, changed or additional work, notice, the variation offer and the new price under BGH and KG case law — part 1 of our VOB/B clause-by-clause series.
The client says the work was pointless and the hours inflated? OLG Brandenburg: the contractor proves the hours, the client proves uneconomic performance. Signed timesheets, no acceptance, defects versus inefficiency.
A court ordered defect rectification and nothing happened. KG Berlin: EUR 58,502 advance based on market offers and free choice of contractor for the creditor.
Send us the contract before signing or the documents of the unpaid work. We will tell you what can be won and at what cost.
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