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New Construction Agreement

New Construction Agreement Template for Germany

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Key Requirements PROMPT example:

New Construction Agreement

"I need a New Construction Agreement for a sustainable office building project in Berlin, incorporating green building standards and LEED certification requirements, with construction scheduled to begin in March 2025 and completion expected within 18 months."

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Document background
The New Construction Agreement is a fundamental document used in German construction projects to establish a legally binding relationship between the principal (Bauherr) and the contractor (Bauunternehmer). It is essential for any new building project in Germany, whether commercial, residential, or industrial. The agreement must comply with German Civil Code (BGB) requirements, particularly §§ 631-651 regarding contracts for work, and often incorporates VOB/B provisions for additional construction-specific regulations. This document is crucial when initiating new construction projects, requiring careful consideration of technical specifications, regulatory compliance, quality standards, and risk allocation. It typically includes detailed schedules covering technical specifications, drawings, and commercial terms, making it suitable for projects ranging from simple structures to complex developments.
Suggested Sections

1. Parties: Identification and details of the Principal (Bauherr) and the Contractor (Bauunternehmer), including full legal names, addresses, and registration details

2. Background: Context of the construction project, including the project's purpose and any relevant preliminary agreements

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

4. Scope of Works: Detailed description of the construction works to be performed, including specifications and quality standards

5. Contract Price and Payment Terms: Fixed price or cost basis, payment schedule, invoicing requirements, and payment conditions

6. Project Timeline: Construction schedule, completion dates, milestones, and provisions for extensions of time

7. Contractor's Obligations: Core responsibilities including workmanship, materials, safety requirements, and compliance with regulations

8. Principal's Obligations: Responsibilities of the building owner, including site access, permits, and provision of necessary information

9. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria for the works

10. Warranties and Defects Liability: Warranty periods, defect rectification procedures, and liability provisions as per BGB requirements

11. Insurance and Security: Required insurance coverage and any performance security or guarantees

12. Variations: Procedures for managing changes to the scope of works and their impact on price and timeline

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

14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

15. General Provisions: Standard legal clauses including notices, governing law, and entire agreement provisions

Optional Sections

1. VOB/B Incorporation: Section explicitly incorporating VOB/B terms - used when parties agree to apply VOB/B standards

2. Subcontractors: Provisions regarding appointment and management of subcontractors - included for larger projects

3. Environmental Requirements: Specific environmental obligations and standards - included for projects with significant environmental impact

4. Site Management: Detailed site management requirements - for complex projects or sensitive locations

5. Intellectual Property: IP rights provisions - included when design elements or innovative construction methods are involved

6. Force Majeure: Specific force majeure provisions beyond standard law - for high-risk or long-term projects

7. Bonus and Penalty Provisions: Performance incentives and liquidated damages - for time-critical projects

8. Building Information Modeling (BIM): BIM requirements and protocols - for projects using BIM technology

Suggested Schedules

1. Schedule 1: Technical Specifications: Detailed technical specifications and construction standards

2. Schedule 2: Construction Drawings: Approved architectural and engineering drawings

3. Schedule 3: Bill of Quantities: Detailed breakdown of quantities and prices

4. Schedule 4: Construction Schedule: Detailed timeline with milestones and critical path

5. Schedule 5: Payment Schedule: Detailed payment terms, installments, and conditions

6. Schedule 6: Site Plan and Access Details: Site layout, access points, and logistics information

7. Schedule 7: Quality Assurance Plan: Quality control procedures and acceptance criteria

8. Schedule 8: Health and Safety Plan: Safety procedures and requirements

9. Appendix A: Building Permits: Copies of all relevant building permits and authorizations

10. Appendix B: Insurance Certificates: Copies of required insurance policies

11. Appendix C: Performance Bond: Bank guarantee or performance bond documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions












































Clauses









































Relevant Industries

Construction

Real Estate

Architecture

Engineering

Infrastructure Development

Commercial Property

Residential Property

Industrial Development

Urban Development

Sustainable Building

Public Sector Construction

Relevant Teams

Legal

Construction

Project Management

Procurement

Commercial

Technical

Quality Assurance

Risk Management

Finance

Compliance

Business Development

Operations

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Procurement Manager

Site Manager

Architect

Chief Engineer

Quality Control Manager

Risk Manager

Commercial Director

Technical Director

Development Manager

Compliance Officer

Finance 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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