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 unsuccess for the private construction client. This has now changed!

As of January 1, 2018, the new construction contract law has been implemented, which creates more clarity and regulation in construction contract conclusion even outside the generally known VOB, which is usually not agreed upon between private construction clients 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 outline some new aspects that must be observed / are required when concluding construction contracts between private construction clients and commercial contractors.

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

This is now definitively over:
From January 1, 2018, the client has the right to a clear and detailed construction description. This ultimately means for the customer that they know exactly what they get for their money and for the craftsman that they don't owe any subsequent accountabilities and explanations for their execution method.

Caution for crafts companies:
If no construction description is added at contract conclusion, the crafts 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 doesn't ask for it out of (justified) ignorance.

Schedule Compliance
Previously, schedule agreements between private construction clients and craftsmen were not particularly valuable, or the mention of a completion date was not always part of the agreement.

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

Construction Documentation
Many crafts businesses have shied away from handing over planning documents to the construction client in the past. Many crafts companies have completely foregone the creation of planning basics or had organizational difficulties in handing them over to the customer.

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

Payment Plan
If no clear regulations regarding payment modalities were previously made in construction contracts between construction clients and craftsmen, things look completely different since January 2018.

Apart from the already existing claim to contract performance security (5 percent of total construction costs), private construction clients now receive another means of pressure against craftsmen:
The crafts company may only issue progress 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 that affect both construction clients and construction companies. Before any construction project, one can definitely recommend consulting a specialized 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 become established in all crafts businesses, many years will most likely pass.

Construction Supervision & Professional Construction Management
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