The construction contract: a prerequisite for working with subcontractors

A construction contract plays a central role when working with subcontractors. It regulates the conditions for the collaboration: scope of services, deadlines, remuneration as well as the rights and obligations of both parties - from material specifications to deadlines for rectifying defects. In this article, you can find out exactly what a construction contract is, what types there are and what you should pay attention to when working with subcontractors in construction.

What is a construction contract?

A construction contract is a contract concluded between the client and subcontractors. It regulates the central conditions for the collaboration: the scope of services, the time set for the provision of the services and the remuneration. In addition, further rights and obligations of both parties can be stipulated in the construction contract - such as the materials to be used or clearly defined time frames for the rectification of defects.

A construction contract obliges the subcontractor to carry out all agreed construction work in a professional and timely manner. The client in turn undertakes to pay the agreed price on time.

What types of construction contracts are there?

Not all construction contracts are the same. A distinction is made between BGB contracts and VOB contracts. BGB contracts are based on the German Civil Code and are primarily used in private residential construction. VOB contracts (German Construction Contract Procedures) contain special regulations for dealing with defects and invoicing and are more specifically tailored to commercial construction operations.

VOB contracts are therefore often the more suitable basis for working with subcontractors in the commercial sector.

What is important when working with subcontractors?

The construction contract regulates the What. But there are other factors that are crucial for smooth collaboration:

Clear communication: Fixed contacts and regular coordination are important, as construction projects are dynamic and the situation can change at short notice.

Flexibility and meeting deadlines: A good subcontractor strikes a balance between flexibility and meeting the deadlines stipulated in the construction contract.

Quality control: The subcontractor's work should be checked as part of regular quality control in order to recognise any defects at an early stage.

With a well-drafted construction contract and compliance with these framework conditions, nothing stands in the way of successful cooperation with subcontractors in construction.

Temporary work in the construction industry: What should I bear in mind?

Another way of recruiting qualified personnel for construction projects is temporary work (labour leasing). This involves workers being loaned from one company to another for a certain period of time - for example, until a project is completed. This enables companies to quickly and flexibly deploy the labour they need.

However, a special regulation applies to temporary work in the construction industry: it is only permitted if the hiring company and the supplying company are both active in the construction industry. Both must also be in the same construction sector. There are six of these in the construction industry: demolition, construction, building construction, scaffolding, roofing and gardening and landscaping.

The transfer of employees is therefore only possible from one construction industry to another, from one demolition industry to another, etc. - not across all industries within the construction sector.

You can read more about the distinction between contracts for work and labour leasing in the construction sector in our article Temporary employment vs. subcontracting.

Frequently asked questions about construction contracts with subcontractors