{"id":5035,"date":"2026-07-10T21:38:36","date_gmt":"2026-07-10T19:38:36","guid":{"rendered":"https:\/\/bwlaw.de\/knowledge-base\/termination-construction-contract-germany\/"},"modified":"2026-07-10T21:38:36","modified_gmt":"2026-07-10T19:38:36","slug":"termination-construction-contract-germany","status":"publish","type":"page","link":"https:\/\/bwlaw.de\/en\/knowledge-base\/termination-construction-contract-germany\/","title":{"rendered":"Terminating a construction contract in Germany for cause \u2014 \u00a7 648a BGB and the VOB\/B"},"content":{"rendered":"\r\n<div id=\"progress\" aria-hidden=\"true\"><\/div>\r\n\r\n<!-- EN version of wypowiedzenie-umowy-budowlanej-w-niemczech. Own text, no sentence\r\n     taken from external publications. Citations verified 10.07.2026:\r\n     \u00a7\u00a7 314, 648, 648a, 650h BGB (gesetze-im-internet.de), \u00a7\u00a7 8, 9 VOB\/B (dejure.org),\r\n     BGH 19.1.2023 - VII ZR 34\/20, BGH 7.4.2016 - VII ZR 56\/15. -->\r\n<header>\r\n  <div class=\"wrap\">\r\n    <a href=\"\/en\/\" class=\"brand\" aria-label=\"BWLAW\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"BWLAW \u2013 law firm in Germany\" width=\"42\" height=\"28\"><\/a>\r\n    <nav aria-label=\"Main navigation\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Corporate law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Employment law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\" class=\"active\">Knowledge base<\/a>\r\n      <a href=\"\/en\/#zespol\">Team<\/a>\r\n    <\/nav>\r\n    <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/#kontakt\" class=\"btn\">Contact a lawyer <span class=\"arr\">\u2192<\/span><\/a>\r\n    <button class=\"burger\" aria-label=\"Menu\">\u2630<\/button>\r\n  <\/div>\r\n<\/header>\r\n\r\n<section class=\"shero\" style=\"padding-bottom:3.5rem\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\" style=\"grid-template-columns:1fr\">\r\n    <div>\r\n      <nav class=\"crumbs\" aria-label=\"Breadcrumbs\"><a href=\"\/en\/\">Home<\/a><span>\/<\/span><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><span>\/<\/span><b>Construction<\/b><\/nav>\r\n      <span class=\"eyebrow\">Construction<\/span>\r\n      <h1 style=\"max-width:30ch\">Terminating a construction contract in Germany for cause \u2014 \u00a7 648a BGB and the VOB\/B<\/h1>\r\n      <p class=\"lead\">The principal stops paying interim invoices while the project drains your cash. Or the letter lands on your desk: the contract is &#8220;terminated with immediate effect&#8221; because you are allegedly in delay. German law does allow the termination of a construction contract without notice \u2014 but it attaches strict conditions, and a mistake in the procedure can reverse the roles and cost more than finishing the project. We explain when good cause exists, which warnings must come first and how the completed works are settled afterwards.<\/p>\r\n      <div class=\"art-meta\">\r\n        <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr. Artur Barczewski\" loading=\"lazy\">\r\n        <div><b>Dr. Artur Barczewski<\/b>Rechtsanwalt \u00b7 attorney-at-law<\/div>\r\n        <div style=\"margin-left:1rem;border-left:1px solid rgba(255,255,255,.25);padding-left:1rem\">\u2248 10 min read<br>updated: July 2026<\/div>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<article class=\"sec\">\r\n  <div class=\"wrap\">\r\n    <div class=\"prose rv\" style=\"font-size:1.02rem\">\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Two kinds of termination \u2014 and why the difference decides the money<\/h3>\r\n      <p>German construction law knows two entirely different terminations. The <strong>free termination (freie K\u00fcndigung, \u00a7 648 BGB)<\/strong> belongs to the principal alone \u2014 at any time, for any reason or none. The price is steep: the contractor keeps, in principle, the entire agreed remuneration, reduced only by the expenses he saves and by what he earns, or could earn, elsewhere. The statute even presumes at least 5 per cent of the remuneration attributable to the unperformed part in his favour.<\/p>\r\n      <p><strong>Termination for cause (\u00a7 648a BGB)<\/strong> works differently. Either party may use it \u2014 the contractor included \u2014 and no notice period applies. In exchange the settlement is harsh: the contractor is paid only for the part of the works performed up to the termination (\u00a7 648a(5) BGB).<\/p>\r\n      <p>That is why court battles rarely turn on whether the contract &#8220;could&#8221; be terminated at all. The real stake is the settlement regime: full remuneration minus savings, or payment for the completed works only. On larger projects the difference runs into hundreds of thousands of euros \u2014 and that difference is what most post-termination lawsuits are about.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">When does good cause exist (\u00a7 648a(1) BGB)?<\/h3>\r\n      <p>The statute defines good cause narrowly: it exists where the terminating party \u2014 taking into account all circumstances of the individual case and weighing the interests of both sides \u2014 cannot reasonably be expected to continue the contract until completion of the works. That is a high bar. A single delay, a quarrel over the quality of one trade or ordinary friction on site will normally not suffice. Courts look at the whole picture: the gravity of the breach, the history of the cooperation, the prospects of improvement and whether milder remedies were exhausted.<\/p>\r\n      <p><strong>Typical grounds on the principal&#8217;s side<\/strong> (the principal terminates): the contractor abandons the site, works so slowly despite warnings that the deadlines become unrealistic, produces serious and mounting defects during execution despite demands to remedy them, or inflates measurements and invoices in a way that destroys trust.<\/p>\r\n      <p><strong>Typical grounds on the contractor&#8217;s side<\/strong> (the contractor terminates): the principal fails to pay due interim invoices despite reminders, does not hand over the site, withholds designs or permits without which the works cannot proceed, or permanently obstructs proper execution. A separate route is the demand for security for the contractor&#8217;s remuneration (Bauhandwerkersicherung, \u00a7 650f BGB) \u2014 it has its own termination mechanism and is often the safer path for the contractor.<\/p>\r\n      <p><strong>Insolvency of the other party.<\/strong> A petition for insolvency does not end the contract automatically, and how far it justifies a termination under \u00a7 648a BGB is debated \u2014 the limits are drawn by insolvency law. Under a VOB\/B contract the principal has an express basis in \u00a7 8(2) VOB\/B. The Federal Court of Justice upheld that clause where the contractor had itself filed for the opening of insolvency proceedings (judgment of 7 April 2016, VII ZR 56\/15).<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Before you terminate: a cure period or a formal warning<\/h3>\r\n      <p>Where the good cause consists in a breach of a contractual duty \u2014 and it almost always does \u2014 termination is permitted only after a deadline set for curing the breach has expired without result, or after an unsuccessful formal warning (Abmahnung). This follows from \u00a7 314(2) BGB, applied mutatis mutandis via \u00a7 648a(3) BGB. Immediate termination remains possible in exceptional cases: where the other side seriously and finally refuses performance, or where special circumstances \u2014 trust destroyed in a way no deadline can repair \u2014 justify ending the contract at once.<\/p>\r\n      <p>In practice many terminations fail at precisely this stage. An effective notice names the specific breach, sets a realistic deadline and unambiguously announces termination should the deadline pass without result. A letter vaguely urging &#8220;better cooperation&#8221; does not prepare a termination \u2014 it merely postpones it.<\/p>\r\n      <p><strong>Time works against the hesitant.<\/strong> The right must be exercised within a reasonable period after the terminating party learns of the cause (\u00a7 314(3) BGB, applied mutatis mutandis). There is no fixed limit, but whoever lets the deadline pass and then carries on with the contract for weeks as if nothing had happened signals that continuing is acceptable \u2014 and may lose the right to terminate through self-contradictory conduct.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Form, reasons, partial termination<\/h3>\r\n      <p><strong>Written form only.<\/strong> The termination of a construction contract must be declared in written form (\u00a7 650h BGB) \u2014 a document with a handwritten signature, delivered to the other party. A plain e-mail, a scanned signature or a messenger text does not satisfy the requirement. The VOB\/B demands written form as well (\u00a7 8(5), \u00a7 9(2) VOB\/B). This is the most easily avoidable reason for an invalid termination \u2014 and a surprisingly frequent one.<\/p>\r\n      <p><strong>Reasons.<\/strong> Stating the grounds in the termination letter is, as a rule, not a condition of validity. The case law does, however, only allow reliance on grounds that objectively existed at the moment of termination \u2014 circumstances that arose later cannot be added to rescue a defective termination. Sensible practice: describe the known grounds in the letter and note that the list is not exhaustive.<\/p>\r\n      <p><strong>Partial termination.<\/strong> The contract may also be terminated for a part of the works, but only for a part that can be clearly delineated from the agreed scope (\u00a7 648a(2) BGB) \u2014 one of several buildings, for instance, or a self-contained trade. A termination of a &#8220;part&#8221; that cannot be delineated is invalid.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">A failed termination for cause \u2014 what happens then<\/h3>\r\n      <p>Here the paths of the two parties diverge dramatically. A <strong>principal&#8217;s termination<\/strong> lacking good cause is generally upheld as a free termination under \u00a7 648 BGB: the contract ends, but the settlement follows the rules favourable to the contractor \u2014 full remuneration minus saved expenses. For the principal this is the most expensive scenario of all, because he also pays for works nobody will perform.<\/p>\r\n      <p>A <strong>contractor&#8217;s termination<\/strong> has no such safety net \u2014 the contractor has no right of free termination. Whoever leaves the site without a sound basis breaches the contract himself and usually hands the principal a good cause for termination, with the risk of liability for the costs of completion by a third company. The contractor must therefore be more certain of his ground than anyone else \u2014 and all the more careful with the warning stage.<\/p>\r\n      <p>A separate trap is the <strong>premature termination<\/strong>: declared before the cure period has expired. Such a termination can be invalid even where the underlying cause was real \u2014 patience until the deadline runs out is cheap, ignoring it is very expensive.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">After the termination: state of the works, acceptance, money<\/h3>\r\n      <p><strong>Joint determination of the state of the works.<\/strong> After termination each party may demand that the other cooperate in a joint determination of the progress achieved (\u00a7 648a(4) BGB). The sanction for refusing has teeth: whoever refuses to cooperate, or fails to attend an agreed or reasonably set appointment, bears the burden of proof for the state of the works at the time of termination. How much depends on that, we show in our article on the <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/construction-defects-burden-of-proof-germany\/\">burden of proof for construction defects<\/a>.<\/p>\r\n      <p><strong>Acceptance is still needed.<\/strong> Termination does not replace acceptance. The remuneration for the completed part generally falls due only once that part has been accepted \u2014 so demand acceptance of the executed works right after the termination instead of letting the dispute freeze your money for years.<\/p>\r\n      <p><strong>The settlement.<\/strong> The contractor is entitled to the remuneration attributable to the works performed up to the termination (\u00a7 648a(5) BGB). In practice this requires an invoice that cleanly separates the performed from the unperformed \u2014 usually a final invoice. How to draw one up so that it stands in court, we explain in our article on the <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/final-invoice-schlussrechnung\/\">final invoice (Schlussrechnung)<\/a>. For defects in the completed works the contractor remains liable under the ordinary rules \u2014 the termination writes nothing off.<\/p>\r\n      <p><strong>Damages.<\/strong> Termination does not exclude claims for damages (\u00a7 648a(6) BGB). A principal who terminated because of the contractor&#8217;s breaches can claim, for example, the completion costs exceeding the agreed price. A contractor who terminated because of the principal&#8217;s breaches can pursue the lost profit on the unperformed part \u2014 but has to calculate and prove it concretely.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"hl rv\" style=\"max-width:760px\">\r\n      <span class=\"eyebrow\">Checklist<\/span>\r\n      <h3>Terminating without stumbling \u2014 the right order of steps<\/h3>\r\n      <p>Document the cause: letters, photographs, site diary, protocols. Send a written notice \u2014 the specific breach named, a realistic deadline, an unambiguous announcement of termination, delivery with proof. Once the deadline has passed without result, act instead of drifting back to business as usual. Declare the termination on paper with a handwritten signature and a description of the grounds. Demand a joint determination of the state of the works immediately and record the site in photographs. Then prepare a settlement that cleanly separates performed from unperformed works.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"prose rv\" style=\"font-size:1.02rem\">\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">VOB\/B: its own catalogue of grounds \u2014 and the defects-clause trap<\/h3>\r\n      <p>Where the parties incorporated the VOB\/B, terminations run first along \u00a7 8 (principal) and \u00a7 9 (contractor) VOB\/B. The principal may terminate, among other cases, upon the contractor&#8217;s insolvency (\u00a7 8(2) VOB\/B) and \u2014 after a fruitless deadline combined with an announcement of termination \u2014 where the contractor fails to remedy defects already during execution (\u00a7 4(7) VOB\/B) or is in delay (\u00a7 5(4) VOB\/B). The consequences bite: the principal may have the works completed by a third party at the contractor&#8217;s expense and claim damages on top.<\/p>\r\n      <p>Around exactly this mechanism the Federal Court of Justice delivered one of the most consequential construction judgments of recent years. <strong>On 19 January 2023 (VII ZR 34\/20)<\/strong> it held: where the VOB\/B was not incorporated as a whole \u2014 and any modification, however small, opens the door to judicial review of its clauses \u2014 the principal-used clause permitting termination for defects before acceptance (\u00a7 4(7) sentence 3 in conjunction with \u00a7 8(3) no. 1 sentence 1 VOB\/B) is invalid. It unreasonably disadvantages the contractor, because by its wording even a minor defect would justify ending the entire contract. The principal is then left with \u00a7 648a BGB alone \u2014 with its high threshold of unreasonableness.<\/p>\r\n      <p>The practical lesson for a contractor served with a &#8220;VOB\/B termination&#8221;: check who introduced the VOB\/B into the contract and whether it applies unchanged. If the principal drafted the terms and departed from the VOB\/B in even one point, the basis of the termination may be invalid \u2014 and an invalid termination for defects frequently ends up as a free termination, with the full settlement in the contractor&#8217;s favour. A contractor who raised his concerns about the specified method of execution in good time gains additional protection through the <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/bedenkenanmeldung\/\">Bedenkenanmeldung, the notice of concerns<\/a>.<\/p>\r\n      <p><strong>Termination by the contractor (\u00a7 9 VOB\/B)<\/strong> is available in two situations: where the principal omits an act incumbent on him and thereby makes it impossible for the contractor to perform, or where he fails to pay a due amount or otherwise falls into debtor&#8217;s delay. Here too the sequence is mandatory: first a written deadline with the declaration that the contract will be terminated should it expire without result, then the written termination. The executed works are settled at the contract prices, and the contractor is additionally entitled to reasonable compensation (\u00a7 642 BGB) \u2014 further claims remain possible.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What this means for your company<\/h3>\r\n      <ul>\r\n        <li><strong>Do not leave the site unprepared.<\/strong> An unfounded stop of the works is a gift to the principal \u2014 your termination turns into his good cause and a bill for the completion costs.<\/li>\r\n        <li><strong>Non-payment is a good cause, but only after the procedure.<\/strong> A written payment deadline with an announcement of termination, its fruitless expiry, then the written termination \u2014 in that order. Consider demanding security under \u00a7 650f BGB in parallel.<\/li>\r\n        <li><strong>Mind the form and the delivery.<\/strong> Paper, handwritten signature, proof of delivery. A termination by e-mail is an invalid termination.<\/li>\r\n        <li><strong>Count the money before you decide.<\/strong> After a termination under \u00a7 648a BGB you are paid for the executed works only. The lost profit on the rest is recoverable solely as damages \u2014 if you prove the principal&#8217;s breaches and the amount of the loss.<\/li>\r\n        <li><strong>The day of termination is the day of documentation.<\/strong> Demand the joint determination of the state of the works, photograph everything, secure the measurements. The entire settlement depends on the state of the works at that moment.<\/li>\r\n      <\/ul>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Frequently asked questions<\/h3>\r\n      <p><strong>Can I stop the works when the principal does not pay interim invoices?<\/strong><br>Non-payment of due interim invoices is one of the most frequent good causes on the contractor&#8217;s side. Before you stop the works, set a written payment deadline with an announcement of termination and let it expire without result. Whoever leaves the site without these steps risks being the one who breaches the contract.<\/p>\r\n      <p><strong>Is a termination by e-mail valid?<\/strong><br>No. The termination of a construction contract requires written form (\u00a7 650h BGB) \u2014 a document with a handwritten signature, delivered to the other party. An e-mail, a scanned signature or a messenger text does not satisfy the form. The VOB\/B requires written form as well (\u00a7 8(5), \u00a7 9(2) VOB\/B).<\/p>\r\n      <p><strong>The principal terminated without good cause \u2014 what about my remuneration?<\/strong><br>Such a termination is generally treated as a free termination under \u00a7 648 BGB. The contract ends, but you keep, in principle, the entire agreed remuneration minus saved expenses \u2014 the statute presumes at least 5 per cent of the remuneration attributable to the unperformed part. Documenting the state of the works at the moment of termination is crucial.<\/p>\r\n      <p><strong>How quickly must I terminate after learning of the cause?<\/strong><br>The right must be exercised within a reasonable period after knowledge of the cause (\u00a7 314(3) BGB, applied mutatis mutandis). There is no fixed limit, but consistency matters: whoever continues the cooperation for weeks as if nothing had happened signals that continuing is acceptable \u2014 and may lose the right.<\/p>\r\n      <p><strong>Is an acceptance of the works still necessary after the termination?<\/strong><br>As a rule, yes. The termination does not replace acceptance, and the remuneration for the completed part generally falls due only once that part has been accepted. Demand the joint determination of the state of the works right away and request acceptance of the executed part.<\/p>\r\n\r\n      <p style=\"font-size:.85rem;color:var(--ink-soft)\">This overview draws, among others, on \u00a7\u00a7 314, 648, 648a and 650h BGB, \u00a7\u00a7 8 and 9 VOB\/B and the judgments of the Federal Court of Justice of 7 April 2016 (VII ZR 56\/15) and of 19 January 2023 (VII ZR 34\/20). This article is for information purposes and does not replace legal advice in an individual case.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"mini-cta rv\"><b>Received a termination \u2014 or about to terminate a German construction contract yourself?<\/b><span style=\"color:var(--ink-soft);font-size:.92rem\">Send us the contract, the notices and the correspondence \u2014 we will assess whether good cause exists, run the termination step by step or defend you against its consequences. In English, German and Polish.<\/span><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/#kontakt\" class=\"btn\">Describe your case <span class=\"arr\">\u2192<\/span><\/a><\/div>\r\n    <div class=\"prose rv\" style=\"margin-top:1.5rem\">\r\n      <h3 style=\"font-size:1.1rem\">Related topics<\/h3>\r\n      <div class=\"chips\" style=\"margin-top:.8rem\">\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/final-invoice-schlussrechnung\/\">The final invoice (Schlussrechnung) \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/construction-defects-burden-of-proof-germany\/\">Construction defects \u2014 the burden of proof \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/bedenkenanmeldung\/\">Bedenkenanmeldung \u2014 the notice of concerns \u2192<\/a>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/article>\r\n\r\n<section class=\"sec alt\">\r\n  <div class=\"wrap\">\r\n    <div class=\"lawyer rv\">\r\n      <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr. Artur Barczewski \u2013 author\" loading=\"lazy\">\r\n      <div>\r\n        <b>Dr. Artur Barczewski<\/b>\r\n        <div class=\"role\">Rechtsanwalt \u00b7 attorney-at-law<\/div>\r\n        <p>Author of this article. Handles construction disputes for foreign companies across Germany. <a href=\"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\">View profile \u2192<\/a><\/p>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<section class=\"cta-end\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\">\r\n    <span class=\"eyebrow rv\">Contact<\/span>\r\n    <h2 class=\"rv d1\">Does your situation look similar?<\/h2>\r\n    <p class=\"rv d2\">Every case has details that change the outcome. Describe yours \u2014 you will receive a concrete answer and a fee estimate.<\/p>\r\n    <div class=\"row rv d3\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/#kontakt\" class=\"btn\">Describe your case <span class=\"arr\">\u2192<\/span><\/a>\r\n      <a href=\"tel:+4933555310969\" class=\"phone\">\u260e +49 335 553 10969<\/a>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<footer>\r\n  <div class=\"wrap\">\r\n    <div class=\"foot-grid\">\r\n      <div>\r\n        <div class=\"foot-brand\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"Logo BWLAW\" width=\"38\" height=\"26\"><\/div>\r\n        <p>Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<br>Rudolf-Breitscheid-Stra\u00dfe 10<br>15230 Frankfurt (Oder), Germany<br><a href=\"tel:+4933555310969\">+49 335 553 10969<\/a> \u00b7 <a href=\"mailto:info@bwlaw.de\">info@bwlaw.de<\/a><\/p>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Practice areas<\/div>\r\n        <ul>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction law and VOB\/B<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Employment law<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection in Germany<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Corporate law and company formation<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Information<\/div>\r\n        <ul>\r\n          <li><a href=\"\/en\/\">Home<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/impressum\/\">Imprint<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/privacy-policy\/\">Privacy policy<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n    <\/div>\r\n    <div class=\"foot-bottom\">\r\n      <span>\u00a9 2026 BWLAW \u00b7 Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<\/span>\r\n      <span>Rechtsanw\u00e4lte \u00b7 attorneys \u00b7 Frankfurt (Oder)<\/span>\r\n    <\/div>\r\n  <\/div>\r\n<\/footer>\r\n\r\n<div class=\"sticky-cta\">\r\n  <a href=\"tel:+4933555310969\" class=\"call\">\u260e Call us<\/a>\r\n  <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/#kontakt\" class=\"book\">Describe your case<\/a>\r\n<\/div>\r\n\r\n<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@graph\": [\r\n    {\r\n      \"@type\": \"Article\",\r\n      \"headline\": \"Terminating a construction contract in Germany for cause \u2014 \u00a7 648a BGB and the VOB\/B\",\r\n      \"description\": \"When a construction contract in Germany can be terminated for cause, which warnings must come first and how the completed works are settled \u2014 \u00a7 648a BGB and VOB\/B.\",\r\n      \"inLanguage\": \"en\",\r\n      \"author\": { \"@type\": \"Person\", \"name\": \"Dr. Artur Barczewski\", \"url\": \"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\" },\r\n      \"publisher\": { \"@type\": \"LegalService\", \"name\": \"BWLAW \u2013 Kanzlei Dr. Barczewski & Dr. Wr\u00f3blewska GbR\", \"url\": \"https:\/\/bwlaw.de\/\" },\r\n      \"datePublished\": \"2026-07-10\",\r\n      \"dateModified\": \"2026-07-10\",\r\n      \"mainEntityOfPage\": \"https:\/\/bwlaw.de\/en\/knowledge-base\/termination-construction-contract-germany\/\"\r\n    },\r\n    {\r\n      \"@type\": \"FAQPage\",\r\n      \"mainEntity\": [\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Can I stop the works when the principal does not pay interim invoices?\",\r\n          \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Non-payment of due interim invoices is one of the most frequent good causes on the contractor's side. Before stopping the works, set a written payment deadline with an announcement of termination and let it expire without result. Whoever leaves the site without these steps risks being the one who breaches the contract.\" }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Is a termination by e-mail valid?\",\r\n          \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"No. The termination of a construction contract requires written form under \u00a7 650h BGB \u2014 a document with a handwritten signature, delivered to the other party. An e-mail, a scanned signature or a messenger text does not satisfy the form.\" }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"The principal terminated without good cause \u2014 what about my remuneration?\",\r\n          \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Such a termination is generally treated as a free termination under \u00a7 648 BGB. The contract ends, but the contractor keeps, in principle, the entire agreed remuneration minus saved expenses \u2014 the statute presumes at least 5 per cent of the remuneration attributable to the unperformed part.\" }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"How quickly must I terminate after learning of the cause?\",\r\n          \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"The right must be exercised within a reasonable period after knowledge of the cause, \u00a7 314(3) BGB applied mutatis mutandis. Whoever continues the cooperation for weeks as if nothing had happened signals that continuing is acceptable and may lose the right to terminate.\" }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Is an acceptance of the works still necessary after the termination?\",\r\n          \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"As a rule, yes. The termination does not replace acceptance, and the remuneration for the completed part generally falls due only once that part has been accepted. Demand a joint determination of the state of the works and request acceptance of the executed part.\" }\r\n        }\r\n      ]\r\n    }\r\n  ]\r\n}\r\n<\/script>\r\n","protected":false},"excerpt":{"rendered":"<p>Construction law Debt collection Corporate law Employment law Knowledge base Team Contact a lawyer \u2192 \u2630 Home\/Knowledge base\/Construction Construction Terminating a construction contract in Germany for cause \u2014 \u00a7 648a BGB and the VOB\/B The principal stops paying interim invoices while the project drains your cash. Or the letter lands on your desk: the contract [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":4417,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-bwlaw-page.php","meta":{"footnotes":"","rank_math_title":"Termination of a construction contract in Germany | BWLAW","rank_math_description":"When can a construction contract in Germany be terminated for cause? \u00a7 648a BGB and \u00a7\u00a7 8, 9 VOB\/B \u2014 grounds, deadlines, written form and final settlement.","rank_math_focus_keyword":"termination of construction contract Germany","rank_math_robots":[]},"class_list":["post-5035","page","type-page","status-publish","hentry"],"bwlaw_import":{"lang":"en","template":"template-bwlaw-page.php"},"_links":{"self":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/5035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/comments?post=5035"}],"version-history":[{"count":0,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/5035\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/4417"}],"wp:attachment":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/media?parent=5035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}