Work Contracts: When the Result Does Not Meet the Standard

Work Contracts

Under a German work contract (Werkvertrag), the contractor does not merely owe effort – they owe a result. That is consumer protection for the client. But it also means: a contractor who delivers defective work has failed their primary obligation.

The work contract differs from the service contract in that there only the activity is purchased, not a result. The Werklieferungsvertrag (supply work contract) is a special case: buying something that still has to be manufactured – a bespoke piece of furniture, for example – is governed by sale law, not works law.

Common law comparison: The German Werkvertrag is broadly comparable to a fixed-price construction or IT contract in the UK or US. The key differences are the statutory acceptance procedure and the way warranty rights operate. In Germany, these are not matters of contract – they are the default legal framework.

Scope of Work

The most common cause of work contract disputes is an unclear or missing description of what is to be delivered. What exactly was ordered? What quality, standard, material? If it is not in writing, the first dispute will reveal what “usual and to be expected” means – which is whatever the court decides.

Acceptance – The Key Moment

Acceptance (Abnahme) triggers the warranty period, transfers risk to the client, and makes the contractor’s fee due. Three things at once – which is why acceptance is so contested.

A client who accepts a work without raising defects loses the right to claim those defects later – at least for defects they knew about. A client who refuses acceptance without valid reason falls into creditor’s delay and is liable for resulting losses.

Acceptance should therefore be documented in writing, with date and a list of any defects noted.

Defects and Subsequent Performance

If the work is defective, the client’s first remedy is subsequent performance only. Only if subsequent performance fails, is refused, or is unreasonable may the client claim withdrawal, price reduction, or damages.

The warranty period for work contracts is two years from acceptance as a general rule, five years for buildings, and four years under VOB (see below).

Payment

The contractor’s fee becomes due on acceptance. Interim payments under § 632a BGB are possible if the contractor submits a verifiable invoice and the stage of completion justifies it.

Special Features

VOB: Construction contracts often incorporate the Vergabe- und Vertragsordnung für Bauleistungen (VOB/B), a standard set of terms that modifies the statutory framework in various ways. In consumer contracts, restrictions apply.

EVB-IT: For IT contracts with public bodies, the Ergänzende Vertragsbedingungen für die Beschaffung von IT-Leistungen (EVB-IT) apply – the IT equivalent of the VOB.

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