Construction Contracts: Things you should know

Legally, the construction contract is based on the general rules of the BGB. There is no formal requirement. Oral commissioning (= conclusion of construction contract) is also possible. In an important contract, however, the written form can also be contractually agreed, for example for related supplements, additional orders or contract amendments. Furthermore, the written form is required for: Building contracts with public clients (determined by municipal regulations) and  building contracts in connection with a land acquisition contract (notarial certification according to § 311 BGB) in the sense of a property development contract or prefabricated house contract.
In these cases, the legal consequence of non-compliance would be a nullity of the contract (§ 125 BGB).
In terms of content, the construction contract regulates the legal relationships and performance obligations between the client and the construction company.

The corresponding obligations of the contracting parties would be as follows:

  • Building contractor: Construction of a building according to agreed criteria.
  • Client: Payment of the agreed remuneration for the work and acceptance of the work.

Typically, a construction contract is a contract for work and services according to §§ 631ff. BGB.

Do you want to know more about it? Get in touch with our law firm. We are experts in contractual law. Internationally and German-Wide.

 


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