Service contract
A service contract is a contract in which the party obliged to provide a service undertakes to provide services without a specific outcome being owed (Sections 611 to 630 BGB). The service contract relates to the provision of activities or services. The party obliged to provide services is not liable for the result of their work, but only for the provision of the agreed activity.
Contract for work
A contract for work is a contract in which the contractor undertakes to produce a specific work (Sections 631 to 650 BGB). In contrast to a service contract, a contract for work and labour focuses on the result. The contractor owes the customer a specific work and is liable for its freedom from defects and completion.
What is the subject of the contract?
Service contract
The Object of a service contract is the provision of a specific activity or service. Examples of this are employment contracts in which the employee provides their labour or consulting contracts in which the consultant offers their expertise. The party obliged to provide services is not responsible for the success of the activity, but only for the provision of the agreed services.
Contract for work
The Object of a contract for work is the production of a specific work. The work can be tangible (e.g. building a house) or intangible (e.g. creating a software programme). The contractor is responsible for the end result and is liable for ensuring that the work fulfils the contractual requirements and is free from defects.
What are the obligations of the parties involved?
Service contract
- Service contractors: Must provide the agreed service without being liable for a specific result.
- Authorised person: Is obliged to pay the agreed remuneration, regardless of the success of the service.
Contract for work
- Entrepreneur: Must produce the agreed work free of defects and on time and hand it over to the customer.
- Orderer: Is obliged to pay the agreed remuneration, but only once the work has been accepted and recognised as free of defects.
In which areas is the service contract suitable and in which is the contract for work?
Service contract: Service contracts are widespread in many industries, particularly where the continuous provision of services is involved. Examples include
- Education: Teachers who give lessons.
- Healthcare: Doctors and nursing staff who provide medical services.
- Consultancy: Management consultants who offer strategic or operational support.
- IT: IT support staff who provide technical support.
Contract for work: Contracts for work and labour are used in industries in which the production of a specific work is involved. Examples are
- construction industry: Construction of buildings and infrastructure projects.
- Mechanical engineering: Manufacture of machines and systems.
- IT: Development of customised software solutions
- Art and design: Creation of artwork, graphics or marketing materials.
What our contribution to you can be
If you are not sure what type of contract you would like to conclude, we will be happy to advise you. We have also been on the market for more than 25 years with the aim of helping companies find staff.
We have focussed on Staff from Eastern Europe specialised. We offer many different trades and services. You can rest assured that we will only provide you with qualified specialists.
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