Contract for work
A contract under which the contractor undertakes to produce a specific result (the works) in return for payment (sections 1165 ff ABGB).
A construction contract is typically a contract for work: what is owed is not mere effort but a concrete result, for instance a building erected free of defects. If that result fails to materialise, warranty and, where applicable, damages apply.
The contractor is under a duty to warn where the client’s material or instructions are unsuitable. The remuneration generally only falls due upon completion of the works. Payment is agreed either as a lump-sum price or on a unit-price basis.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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Lump-sum price
A fixed price for a precisely described construction service; the quantity risk is generally borne by the contractor.
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Warranty
The statutory, fault-independent liability of the contractor for defects that the works already had at handover (sections 922 et seq. of the Austrian Civil Code, ABGB).
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Damages
Fault-based compensation for loss caused by a defect or breach of duty; on construction projects often alongside warranty (sections 1293 et seq., 933a ABGB).
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