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Construction contract and remuneration

Works contract, lump-sum and unit prices, additional orders, final invoice and enforcing or defending remuneration claims.

The construction contract is a contract for work and services under the ABGB (Austrian Civil Code). It owes a result, namely the defect-free building. In practice it is shaped by the agreed scope of works, the pricing form and frequently the ÖNORM B 2110.

We review contracts before signature and represent you when there is a dispute over additional costs, the final invoice or outstanding remuneration. This concerns enforcement just as much as the defence against excessive claims.

The construction contract and its pitfalls

Who owes which performance in which quality follows from the contract, the plans and the building specification. Where the ÖNORM B 2110 is agreed, its rules on changes to the works, deadlines and accounting apply. The pricing form is also decisive.

  • lump-sum price: a fixed price for a clearly defined scope of works
  • unit price: accounting by the actual quantity for each item
  • work on a time and materials basis: accounting by effort for works that cannot be calculated in advance
  • ÖNORM B 2110 as a frequently agreed contractual basis

Additional orders and extra costs

Changed or additional works often lead to dispute. Extra costs must be comprehensible in their basis and amount and should be notified in good time. Anyone who agrees informally here pays more in the end than expected.

Enforcing or defending against remuneration

Remuneration for works generally falls due upon acceptance of the works. Where there are defects, you may retain a reasonable part. A coverage retention and a retention for warranty as security are also customary. We review the final invoice and the deductions in detail.

  • remuneration falls due upon proper acceptance
  • right to withhold performance for defects, reasonable in amount
  • retention as security for the warranty phase
  • review of the final invoice, the cash discount and the deductions

How we support you

  • review of the construction contract and the bill of quantities before signature
  • assessment of claims for extra costs and supplementary claims
  • enforcement of outstanding remuneration claims, including in dunning proceedings
  • defence against unjustified or excessive claims

This article provides 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.

Frequently asked questions

What clients often ask.

When does remuneration fall due? +
In principle upon acceptance of the completed works and a verifiable final invoice. Where the ÖNORM B 2110 is agreed, special review and payment periods apply. For material defects acceptance can be refused, and then the due date shifts.
May I withhold remuneration because of defects? +
Yes, to a reasonable extent. As long as a defect has not been remedied, you may withhold a part of the remuneration that stands in a reasonable relation to the remediation costs. Withholding the full amount for a small defect, by contrast, is risky.
What is a retention? +
The retention is a withheld part of the remuneration that secures the satisfaction of warranty claims. It is usually only paid out after an agreed period has elapsed or against a bank guarantee. The amount and the terms follow from the contract.
Are extra costs possible with a lump-sum price? +
The lump-sum price covers the agreed scope of works. Where additional or changed works are ordered, extra costs can arise for them. Dispute often arises at the boundary between the performance owed and a genuine additional service. A careful review is worthwhile here.
Related topics

This may also be relevant to you.

Construction defects and warranty

Identify, notify and enforce defects in the building. Remedy, price reduction, rescission and the warranty periods under Austrian civil law.

Construction litigation and evidence preservation

Secure evidence before it is built over: judicial preservation of evidence, court experts and the preparation of construction litigation.

Developer contract and BTVG

Protection of buyers under the Austrian Developer Contract Act: instalment schedule, security models, escrow and unwinding when problems arise.

Defects, a remuneration dispute, looming litigation?

In construction law, deadlines and evidence decide. Call us directly or send an email, callback within one business day.

+43 662 6280000 [email protected] Book initial consultation (72 euros)
Contact

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Address

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg