Construction Payment Disputes in Germany

German Construction Lawyers

Construction Payment Disputes in Germany

German Construction Lawyers

In construction payment disputes in Germany, especially in cases involving customers defaulting on payment, the construction company has various options for action – depending on whether it is a BGB or a VOB contract. Thus, in the case of a VOB contract, the contractor can refuse their performance (i.e., stop the work), claim damages for late payment, or even terminate the contract under certain conditions.

To provide our clients with the support they need in such a situation, Schlun & Elseven Rechtsanwälte offers committed legal assistance. Our construction and contract lawyers are very familiar with the regulations and standards applicable in the construction industry and have many years of experience in accompanying construction projects. They will be happy to explain to you what options are open to your construction company in case of late payment or other breaches of contractual obligations.

If a legal dispute cannot be avoided, we will represent you in court to enforce your rights and interests quickly and effectively. Please, do not hesitate to contact us directly using the contact form below.

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Wages for Work under German Law

A worker’s pay claim can arise from a contract for work and labour should their client or customer not fulfil their payment obligation. Due dates for remunerating for work is shown in § 641 BGB, and it states the following:

(1) The remuneration must be paid upon acceptance of the work. If the work is to be accepted in parts and the remuneration for the individual parts is specified, then the remuneration is to be paid for each part when it is accepted.

(2) The remuneration of the contractor for a work whose production the customer has promised to a third party is due at the latest

  1. to the extent that the customer has received from the third party his remuneration or parts of his remuneration for the production of the promised work,
  2. to the extent that the work of the customer has been accepted by the third party or is deemed to have been accepted, or
  3. to the extent that the contractor has unsuccessfully set the customer a suitable deadline for information on the circumstances referred to in nos. 1 and 2.

If the customer has given the third party security on account of possible defects of the work, sentence 1 applies only if the contractor gives the customer an appropriate security.

The rights of workers regarding remuneration are provided for under § 631 BGB which a contractor is obliged to produce the promised work and the customer is obliged to pay the agreed remuneration.

 The agreed remuneration can be in the form of money or terms of exchanged services.

Our Services as German Construction Lawyers

Our German construction lawyers are available to advise and support you in construction law disputes. As well as advice regarding pay disputes, our lawyers can be relied upon to help you with issues such as:

  • Expert legal advice concerning construction defects.
  • Careful analysis and drafting of construction contracts. Our lawyers will support you in disputes concerning important contractual matters.
  • Analysis and drafting of architectural contracts and engineering contracts.
  • Full-service support in property development law.
  • Clear advice with public building law (building permits, changes of use, decommissioning and demolition orders, neighbourhood lawsuits).
  • Representation in construction litigation.
  • Assistance in out-of-court settlements, conciliation and before the arbitration court

The above listed are just some of the areas our construction lawyers advise our clients. If you require specialist legal services, don’t hesitate to contact our firm directly.

What are the Benefits of Working with a Construction Law Attorney?

German construction law consists of a myriad of regulations on a local, regional, national and international level (with European Union law playing a significant role). A German construction lawyer should be present from the start of the construction and planning process. Construction lawyers can ensure that the project fulfils regulatory requirements, and they can submit claims, provide contract analysis and assess whether contract termination is the right step. Working alongside an experienced attorney ensures that you have leading legal advice and support every step of the way and can be relied upon should legal disputes arise.

Proactive construction lawyers can prevent litigation, as they have inside knowledge regarding construction law and the construction process. By working with our professionals, you can avoid pitfalls and mistakes that can be detrimental to the construction project. Through careful construction analysis, our team is ready to advise you regarding pushing for a payment claim.

At Schlun & Elseven Rechtsanwälte, our construction lawyers assist clients ranging from property owners, developers, general contractors and subcontractors, among others.

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Practice Group: German Construction Law