The construction contract before signing
Before signing you have the best negotiating position. This checklist guides you through the points that often remain unclear in a construction contract and become costly later, from scope and price to deadlines, warranty and dispute resolution.
The construction contract sets out who has to provide what, at what price and by when. Whatever is not regulated here, or is regulated unclearly, can only be remedied later with difficulty and often only through dispute. Before signing you still have the chance to add or change points; afterwards, what was agreed applies.
Particularly sensitive are the limits of the scope, the payment schedule, the deadlines together with a contractual penalty, and the question of what applies in the event of defects. A contract that regulates these points cleanly protects both sides and avoids the most common conflicts in construction.
This checklist is a guide and not a finished contract. It does not replace a review of the specific contract in the individual case. It helps you to enter the negotiation prepared and to recognise the points you should clarify before signing.
Go through the draft contract point by point. You can tick off each point; the status is saved on your device.
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01 Clarify the contracting parties and scope
First it must be clear who owes exactly what service to whom.
02 Check price, payment schedule and securities
The price and when it falls due determine your financial risk.
03 Regulate deadlines, default and penalties
Without clear deadlines, default is hard to pin down and barely enforceable.
04 Variations, additional services and documentation
Much changes on a building site. What matters is that changes remain provable.
05 Secure warranty, acceptance and defect rights
This is where it is decided what rights you have after handover.
06 Dispute resolution and legal review
Finally, how to proceed in the event of conflict should be clarified.
What matters legally
In Austria the construction contract is generally a contract for work under sections 1165 et seq. ABGB. The contractor owes the production of the agreed work, the client the agreed remuneration. How precisely service and price are determined follows from the contract together with the plans and building specification. Unclear limits of scope are one of the most common causes of disputes over variations.
For warranty, a period of three years from handover applies to a building (section 933 ABGB). A warranty retention secures these claims in practice. ÖNORM B 2110 contains many practical rules, for example on acceptance, defects and deadlines, but applies only if it has been expressly agreed; otherwise the rules of the ABGB apply.
A contractual penalty for default is permissible, but must be determinate and may not be unreasonably high, otherwise it can be moderated under section 1336 ABGB. When buying from a developer, the Developer Contract Act (BTVG) additionally protects through regulated payment schedules and securing duties. Which rules apply in the individual case depends on the specific contractual arrangement.
This checklist is a general guide to the Austrian legal position (as of June 2026) and makes no claim to completeness or legal certainty. It does not replace a review of the specific contract in the individual case and is not a finished contract text.
Further topics around the construction contract
Construction contract and remuneration
The focus page on the construction contract, remuneration and the typical points of dispute over service and price.
Developer contract and BTVG
What applies when buying from a developer: payment schedules, securing models and the protection under the BTVG.
Retention money
What a warranty retention is and how it secures your warranty claims after acceptance.
BRANDAUER Rechtsanwälte
Salzburg law firm for real estate, construction and corporate law
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