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Builder Buyer Agreement for Germany

Builder Buyer Agreement Template for Germany

A Builder Buyer Agreement under German law is a comprehensive legal document that governs the relationship between a construction company (builder) and a property buyer for the construction of a building or structure. The agreement is subject to German Civil Code (BGB) provisions, particularly sections relating to work contracts (Werkvertrag) and construction law, as well as specific regulations such as the VOB/B where applicable. It details construction specifications, payment terms, quality standards, timelines, warranties, and acceptance procedures while ensuring compliance with German building regulations and consumer protection laws.

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What is a Builder Buyer Agreement?

The Builder Buyer Agreement is a crucial document used in German construction projects when a property buyer contracts with a construction company for building works. This agreement, governed by German law, particularly the Civil Code (BGB) and construction regulations, establishes the legal framework for the entire construction project. It is essential when a buyer wishes to have a property constructed to their specifications, whether for residential or commercial purposes. The document incorporates mandatory provisions under German construction law, including consumer protection measures, warranty obligations, and payment security requirements under the MaBV (Broker and Property Developer Regulation). The Builder Buyer Agreement typically includes detailed specifications, pricing structures, timelines, quality standards, and acceptance procedures, serving as the primary reference document throughout the construction process and any subsequent warranty period.

What sections should be included in a Builder Buyer Agreement?

1. Parties: Identification and details of the Builder (contractor) and the Buyer, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the project overview and the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terminology

4. Subject Matter of Contract: Detailed description of the construction project, including the property details and scope of construction work

5. Construction Specifications: Detailed technical specifications of the building work, including materials, standards, and quality requirements

6. Price and Payment Terms: Total contract price, payment schedule, and terms including installment payments as per MaBV regulations

7. Construction Timeline: Project schedule, completion date, and milestone deadlines

8. Builder's Obligations: Comprehensive list of the builder's responsibilities, including compliance with building regulations and quality standards

9. Buyer's Obligations: Buyer's responsibilities including access provision, cooperation requirements, and timely payments

10. Quality Assurance and Inspections: Quality control measures, inspection procedures, and acceptance criteria

11. Warranties and Defects Liability: Warranty terms, defect notification procedures, and remediation processes as per BGB requirements

12. Insurance and Liability: Required insurance coverage and allocation of risks between parties

13. Acceptance and Handover: Procedures for work acceptance, documentation requirements, and final handover process

14. Termination Rights: Grounds and procedures for contract termination by either party

15. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

16. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

What sections are optional to include in a Builder Buyer Agreement?

1. VOB/B Application: Section declaring the application of VOB/B terms - include only if parties agree to incorporate VOB/B

2. Subcontractors: Rules regarding subcontractor engagement and management - include for larger projects

3. Environmental Requirements: Specific environmental and energy efficiency requirements - include if project has special environmental considerations

4. Financing Arrangements: Details of any financing arrangements or requirements - include if buyer requires specific financing provisions

5. Dispute Resolution: Alternative dispute resolution procedures - include if parties wish to specify mediation or arbitration procedures

6. Changes and Variations: Procedures for handling changes to the original specifications - include for complex projects

What schedules should be included in a Builder Buyer Agreement?

1. Schedule 1: Property Details: Detailed description of the property including land registry details and site plans

2. Schedule 2: Construction Plans: Architectural drawings, floor plans, and technical specifications

3. Schedule 3: Bill of Quantities: Detailed breakdown of materials, quantities, and associated costs

4. Schedule 4: Payment Schedule: Detailed payment schedule with installment amounts and triggering milestones

5. Schedule 5: Construction Timeline: Detailed project timeline with all major milestones and completion dates

6. Schedule 6: Quality Standards: Specific quality standards, materials specifications, and acceptance criteria

7. Schedule 7: Warranties: Detailed warranty terms and conditions for different aspects of the construction

8. Appendix A: Building Permits: Copies of all relevant building permits and approvals

9. Appendix B: Insurance Certificates: Copies of required insurance policies and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions













































Clauses




































Relevant Industries

Construction

Real Estate

Property Development

Architecture

Building Materials

Construction Engineering

Real Estate Finance

Property Investment

Relevant Teams

Legal

Construction Management

Project Management

Real Estate

Procurement

Risk and Compliance

Technical Operations

Property Development

Contract Administration

Quality Assurance

Relevant Roles

Construction Manager

Project Manager

Legal Counsel

Contract Administrator

Property Developer

Architect

Building Engineer

Quantity Surveyor

Real Estate Manager

Compliance Officer

Risk Manager

Construction Site Supervisor

Technical Director

Chief Operating Officer

Procurement Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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