Payment security should be considered before a liquidity dispute threatens the site. The April dossier addresses the relationship between outstanding remuneration, guarantees and the information needed to assess a security request.
April 2026 practice dossier. A thematic entry in the annual archive, prepared and legally reviewed on 13 November 2026. This is not a claim that it was published or that legislation changed in that month.
Build a transparent claim schedule
Start with the agreed remuneration, authorised additional work and payments received. Separate disputed pricing from the fact that work was ordered. Identify existing guarantees and their wording rather than counting the same amount twice. A schedule should allow the recipient to understand the contract, secured balance and basis of ancillary amounts. Keep supporting documents available instead of relying on a single total in a demand letter.
Check the statutory route and consequences
Section 650f BGB provides a statutory security mechanism subject to its scope and exceptions. It is not available on identical terms in every consumer or public-sector project. Before threatening suspension or termination, review eligibility, the required notice and a reasonable deadline. The commercial impact of interrupting work, insurance and site protection should be assessed alongside the legal prerequisites. A security demand and a payment demand serve different purposes.
Project review checklist
- Reconcile contract sums, variations and payments.
- Check the wording and expiry of existing security.
- Assess statutory exceptions before issuing a deadline.
Four practical examples
These illustrative scenarios are fictional examples, not accounts of client matters.
Part payment
The employer pays one invoice while a security request is being prepared. Update the secured balance and explain the calculation. A stale total can turn a useful protection measure into a dispute about the demand itself.
Guarantee wording
A guarantee covers only the original contract price. Check whether instructed additional work is included. The name of the document alone does not establish the extent of protection.
Public employer
A contractor uses a standard private-sector demand against a public body. First examine the statutory exception and available contractual security rather than assuming the template applies unchanged.
Threatened stoppage
The security deadline approaches while an open excavation needs protection. Review the legal preconditions and plan safe site measures. An entitlement dispute does not remove the need to address immediate physical risks.
Further guidance and sources
Explore the related construction law service