1. Building Type E Act (Gebäudetyp-E-Gesetz): The German federal cabinet has introduced the Building Type E Act to simplify residential construction regulations. This law permits deviations from certain non-safety-related technical standards, which could reduce construction costs by up to 10%. For example, lower ceiling heights or fewer electrical outlets may be agreed upon as long as critical safety standards, such as fire protection, are not compromised. The act is anticipated to come into effect in early 2025.

2. Amendment to the Federal Building Code (§246e BauGB): A new provision, §246e, has been added to the Federal Building Code to expedite residential construction in high-demand areas. It allows projects to proceed without separate development plans, significantly reducing bureaucratic delays and enabling quicker project initiation.

3. Implementation of Building Information Modeling (BIM): Starting in 2025, the use of Building Information Modeling (BIM) will be mandatory for federal trunk road projects. This follows its successful application in the rail sector and aims to improve efficiency, cost control, and transparency in large-scale infrastructure projects.


Recent Court Decisions in Construction Law

1. Federal Court of Justice (BGH) Ruling on §4 Abs. 7 VOB/B: The BGH declared §4 Abs. 7 of the VOB/B invalid under general terms and conditions law. This provision previously allowed clients to terminate contracts for defects before acceptance. The ruling highlights the necessity of adhering to statutory rules and ensuring that contractual clauses are clear and balanced.

2. Higher Regional Court (OLG) Oldenburg Decision on Contractor Liability: The OLG Oldenburg ruled that a contractor is not liable for damages caused by an unsuitable substructure if the defect was not reasonably foreseeable. In the case, a carpet was installed over rolled asphalt, which led to defects. The court emphasized the importance of a proper substructure assessment, assigning liability based on what the contractor could reasonably anticipate.


Impact of These Changes

  1. Simplified Regulations: The Building Type E Act and amendments to the Federal Building Code are designed to streamline processes, particularly in areas with urgent housing needs, reducing costs and administrative complexity.
  2. Digitalization in Construction: The mandatory use of BIM in road projects represents a significant step toward modernizing infrastructure planning and execution.
  3. Judicial Clarifications: Recent court rulings provide clarity on contractors’ obligations and ensure fair application of construction laws, which is crucial for maintaining trust in contractual relationships.

Conclusion

The recent developments in German construction law represent a pivotal shift toward greater efficiency, cost-effectiveness, and modernization. Stakeholders in the construction industry must stay informed and adapt their practices to align with these changes to optimize compliance and operational success.