In the past, there were many ambiguities in the area of construction contract conclusion between private consumers and craftsmen, which only came to light during disputes between the parties, usually with legal unsuccessfulness for the private developer. This has now changed!

As of January 1, 2018, the new construction contract law has come into effect, which also creates more clarity and regulation in construction contract conclusion outside of the generally known VOB, which is usually not agreed upon between private developers and contractors anyway. This step aims to significantly improve consumer protection and regulate previously unclear matters such as material procurement, construction descriptions, time delay situations and other issues. Overall, the construction contract law is positive for both parties. Below, we would like to present some new aspects that must be observed / are required in future construction contract conclusions between private developers and commercial contractors.

The Construction Description
Previously, a craftsman company was not obligated to provide a detailed construction description of the planned or offered project to the private client. Unfortunately, this often had the effect that the customer (usually as a layperson) did not know exactly what quality standard and what type of execution he would receive.

This is now definitively over:
As of January 1, 2018, the client has the right to a clear and detailed construction description. This ultimately means for the customer that he knows exactly what he gets for his money and for the craftsman that he does not owe any subsequent accountability and explanations for his execution method.

Caution for craftsman companies:
If no construction description is added at contract conclusion, the craftsman company will usually be disadvantaged in case of disputes after completion of the construction project and may have to make improvements. The craftsman has the binding obligation to issue the construction description, even if the layperson does not ask for it out of (justified) ignorance.

Schedule Adherence
Previously, schedule agreements between private developers and craftsmen were not particularly valuable or the specification of a completion date was not always part of the agreement.

This is also now definitively over:
Craft or construction companies must now make a binding statement about the completion date. If the craftsman still falls behind schedule, damage claims can now be made much more easily.

Construction Documentation
Many craft businesses have shied away from handing over planning documents to the developer in the past. Many craftsman companies have even dispensed with the creation of planning bases or had organizational difficulties in transferring these to the customer.

The legislator has now put a stop to this:
Since January 1, 2018, the developer now has the right to receive the important construction documents or planning documents from the construction company before construction begins.

Payment Plan
If no clear regulations on payment modalities were previously made in construction contracts between developer and craftsman, the situation has looked completely different again since January 2018.

Apart from the already existing claim to contract performance security (5 percent of total construction costs), private developers now receive another leverage against craftsmen:
The craftsman company may only issue partial invoices totaling a maximum of 90 percent of the total amount. However, property developers continue to be exempt from this regulation.

Further Changes
But that was far from everything. Since the construction contract law of January 1, 2018, various new regulations have been made, affecting both the developer and the construction company. Before any construction project, one can definitely recommend consulting a specialist lawyer for construction law to be informed about the necessary rights and obligations, because one thing is certain: Until the new construction contract law has settled in with all craft businesses, many years will most likely pass.

Construction Supervision & Professional Construction Management
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