Contracts for internationals

Working with German building contracts

German construction contracts follow the Civil Code (BGB) and are written in German. This guide explains the Werkvertrag, the building description, payment schedules, the five-year warranty, certified translations and when to bring in an English-speaking lawyer.

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Werkvertrag (BGB) vs. the building description

To build a prefab or turnkey house you normally sign a construction contract called a Werkvertrag, governed by the German Civil Code (BGB). Unlike a services contract, a Werkvertrag obliges the builder to deliver a defined result — the finished house — to the agreed standard. As of 2026, consumer building contracts also carry statutory protections under the BGB; you can read the official English translation of the BGB.

The heart of the deal is the building description (Bau- und Leistungsbeschreibung). It sets out materials, standards, dimensions, technical equipment and — just as importantly — what is excluded. Two offers with similar headline prices can differ hugely here (for example whether flooring, painting or the heating system are included), so compare descriptions line by line, not just prices.

Four things every contract defines

Werkvertrag (BGB)

The construction contract commits the builder to deliver a finished house, governed by the German Civil Code (BGB), with statutory consumer protections.

Building description

The Bau- und Leistungsbeschreibung defines exactly what is included and excluded — the true scope behind the fixed price.

Payment schedule

The Zahlungsplan links instalments to build progress. Pay only for completed work and keep a retention for the final handover.

5-year warranty

Gewährleistung runs five years from acceptance (Abnahme). Document defects in the handover protocol before accepting the house.

Payment schedule and the 5-year warranty

The payment schedule (Zahlungsplan) links instalments to build progress — for example after the foundation, the shell, the roof and final completion. German consumer building law limits how much can be demanded up front and lets you withhold a reasonable amount until defects are resolved. Never pay ahead of the work actually completed, and keep a retention for the final handover.

After construction, the house is formally accepted (Abnahme). From that date the statutory warranty (Gewährleistung) for building work runs for five years, during which the builder must remedy defects that existed at handover. Record every defect in the handover protocol and do not accept the house unconditionally if significant issues remain. To confirm the technical standards a reputable German builder should meet, see our guide to the QDF and RAL quality standards.

Translations and legal review

Certified translations

German contracts are binding in German and the notarial deed must be in German. If you are not fluent, arrange certified (beglaubigte) translations by a sworn translator of the construction contract, building description and purchase deed so you fully understand what you sign.

English-speaking lawyer

For amounts as large as a house, an independent English-speaking lawyer (Rechtsanwalt) can review the Werkvertrag, building description, payment schedule and warranty terms and flag unfair clauses. This is separate from the neutral notary and is usually money well spent.

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FAQ: German building contracts

Answers on the Werkvertrag, building description, payment schedules, warranty, translations and legal advice — as of 2026.

What kind of contract do I sign to build a house?

For a prefab or turnkey house you usually sign a construction contract known as a Werkvertrag, governed by the German Civil Code (BGB). It commits the builder to deliver a completed result — the finished house — rather than just services. A key part of this contract is the building description (Bau- und Leistungsbeschreibung), which defines exactly what is and is not included. As of 2026, consumer building contracts also carry statutory protections under the BGB.

What is the Bau- und Leistungsbeschreibung?

The Bau- und Leistungsbeschreibung is the building/services description attached to the construction contract. It specifies materials, standards, dimensions, technical equipment and what is excluded, so it defines the scope of the fixed price. Read it carefully: differences between offers often hide here (for example whether flooring, painting, the heating system or outdoor works are included). German consumer building law requires this description to be handed over in good time before signing.

How do payment schedules (Zahlungsplan) work?

A construction contract includes a payment schedule (Zahlungsplan) linking instalments to build progress — for example after the foundation, the shell, the roof and completion. German consumer building law caps how much can be demanded and gives you the right to withhold a reasonable amount until defects are fixed. Never pay ahead of the work actually completed, and keep the retention for the final handover.

What warranty do I get (Gewährleistung)?

For building work in Germany the statutory warranty period (Gewährleistung / Mängelansprüche) is five years from acceptance (Abnahme) of the completed house, under the BGB. During this time the builder must remedy defects that existed at handover. Acceptance is an important moment: document defects in the handover protocol and do not accept the house unconditionally if significant issues remain. As of 2026 these are the standard statutory rules.

Do I need certified translations?

German contracts are legally binding in German, and the notarial deed for the plot must be in German. If you are not fluent, arrange certified translations of the construction contract, the building description and the purchase deed so you fully understand what you are signing. A certified (beglaubigte) translation by a sworn translator is recommended for the notary process and gives you a reliable reference document.

When should I hire an English-speaking lawyer?

Consider an independent, English-speaking lawyer (Rechtsanwalt) whenever the amounts are large or the contract is complex — which is almost always the case for building a house. A lawyer can review the Werkvertrag and building description, check the payment schedule and warranty terms, and flag unfair clauses before you sign. This is separate from the notary, who is neutral. For most international buyers, independent legal review is money well spent.

As of 2026, general information only, provided without warranty. Prefabricated House is an independent comparison portal and does not provide legal advice. Before signing any construction or purchase contract, obtain independent legal review from a qualified German lawyer.