The Construction Settlement Agreement is a crucial document used in the German construction industry to resolve disputes and finalize arrangements between parties involved in construction projects. It is typically employed when parties wish to settle disagreements regarding construction work, payments, delays, or defects without resorting to litigation. Under German law, particularly the Civil Code (BGB) and Construction Contract Procedures (VOB/B), this agreement must address specific legal requirements while providing clear terms for settlement. The document includes essential elements such as payment provisions, releases of claims, ongoing warranty obligations, and technical specifications. It serves as a final resolution document that helps parties move forward while protecting their respective interests within the German legal framework.
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1. Parties: Identification of all contracting parties, including full legal names, addresses, and registration details
2. Background: Description of the original construction contract, project details, and nature of disputes that led to this settlement
3. Definitions: Definitions of key terms used throughout the agreement
4. Settlement Sum: Detailed breakdown of the agreed settlement amount and payment terms
5. Mutual Releases: Provisions for mutual release of claims related to the disputed matters
6. Representations and Warranties: Statements by both parties regarding their authority to enter into the agreement and the validity of their claims
7. Confidentiality: Provisions regarding the confidentiality of the settlement terms and related information
8. Governing Law and Jurisdiction: Confirmation of German law as governing law and jurisdiction for any future disputes
9. Entire Agreement: Clause confirming this document represents the entire agreement between parties regarding the settlement
10. Execution: Signature blocks and execution requirements
1. Continuing Obligations: Section detailing any ongoing obligations that survive the settlement, such as warranties or maintenance requirements
2. Third Party Claims: Provisions addressing potential claims by or against third parties related to the construction project
3. Tax Implications: Section addressing tax consequences of the settlement payments
4. Insurance: Provisions regarding ongoing insurance requirements or claims
5. Dispute Resolution: Specific procedures for resolving any future disputes about the settlement agreement
6. Partial Completion: Terms regarding any remaining work to be completed, if applicable
7. Subcontractor Relations: Provisions addressing relationships with and obligations to subcontractors
1. Schedule 1 - Original Contract Documents: Copy or summary of the original construction contract and key amendments
2. Schedule 2 - Dispute Summary: Detailed description of the disputed matters being settled
3. Schedule 3 - Payment Schedule: Detailed breakdown of settlement payments, including amounts, dates, and payment methods
4. Schedule 4 - Outstanding Works: List of any remaining works to be completed, if applicable
5. Schedule 5 - Released Claims: Detailed list of claims being released by both parties
6. Appendix A - Technical Specifications: Technical details relevant to the settlement or remaining works
7. Appendix B - Site Documentation: Relevant site photos, plans, or reports referenced in the settlement
8. Appendix C - Certificates: Relevant certificates, permits, or approvals related to the construction work
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Engineering
Architecture
Project Development
Public Works
Commercial Property
Residential Development
Industrial Construction
Relevant Teams
Legal
Construction
Commercial
Finance
Operations
Risk Management
Project Management
Technical Services
Contract Administration
Executive Leadership
Relevant Roles
Construction Project Manager
Legal Counsel
Contract Manager
Chief Executive Officer
Chief Financial Officer
Construction Site Manager
Architect
Quantity Surveyor
Claims Manager
Risk Manager
Technical Director
Commercial Director
Project Director
Construction Law Specialist
Senior Engineer
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