Construction Contract: Building your own home inevitably leads to legal issues that many people have to deal with at some point in their lives. For the drafting of the building contract, there are some aspects that should be taken into account.
The most important things to know:
- The building contract sets out in writing all the agreements relating to the building project.
- The construction contract is governed either by the provisions of the German Civil Code (Bürgerliches Gesetzbuch) or by the German Construction Contract Procedures (VOB).
- If the building contract is concluded in accordance with the VOB, builders may be able to withdraw from or terminate the building contract.
What exactly is a building contract?
With the building contract, building law offers builders the opportunity to set out all agreements with the construction company in a legally binding manner.
Legally, the building contract is a contract for work and services (§ 631 BGB) and is governed by §§ 650a to 650h of the German Civil Code (BGB). The linchpin of the construction contract is the defect-free construction of the building project in exchange for the payment of the agreed remuneration.
What must be observed in a construction contract?
Regardless of whether it is a property developer, a general contractor or individual trades: only by fixing things in a contract do you have legal certainty if something should go wrong. Before you accept the mostly prefabricated draft of the business partner, you should thoroughly check the construction contract to identify inaccuracies in time.
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