Building Law

In private construction law, the contract between the parties constitutes the most important basis for the realization of a construction, conversion or renovation project. Construction contracts utilize the contract law of the BGB (German Civil Code) or the widely used general conditions of contract for construction services, VOB/B. In international construction law, the FIDIC and nec conditions form the basis for standard contract terms and conditions; the FIDIC also ensures that the peculiarities of foreign construction law are better taken into account. It is the objective of the contracting parties that contracts can be completed on time and within budget in all cases.

 

Financial aspects are very important and, therefore, should not be neglected concerning the safety of building contracts; the security, collateral, bank guarantees and letters of comfort. Therefore, the construction contract must be very carefully drafted; this is also the case with other contracts involved in construction, e.g. those for subcontractors, architects, project managers which should also be tailored appropriately.

 

The construction contract comes in many special forms in order to meet the specific requirements of the industry,. The GMP contract contains a guaranteed maximum price for contract work. The general contractor usually ensures the turnkey completion of the overall project, who, however, do not perform all the work themselves, but pass it on to various subcontractors, and they are coordinated and monitored.  Because of the generally tight budgetary situation, public projects are increasingly carried out in the form of an Öffentlich Privaten Partnerschaft, ÖPP. This partnership is also known as a Public Private Partnership, PPP.

Architects and Project Managers are finally now also included in private construction projects. Both find their legal basis in the Fees for Architects and Engineers, HOAI.

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