Conversion of security retention after guarantee letter

Here is a scan of the guarantee: I know that legal advice is not permitted here in the forum (old law from 1935), but if someone could give me their personal assessment of this text, I would be very grateful! Does this, for example, exclude liability for hidden defects?

Hm, the forum software compressed the image a bit too much... Since I'm not allowed to insert a link, I guess I'll have to type out the text tomorrow...

Or, dear moderators, may I exceptionally link an image? Or how can I insert it in 700x432 pixels?

One cannot, as you yourself have noticed, unfortunately read anything.

I find the writing and the demand very brazen. If I were you, I would not respond to it. At this point, you need to seek a clarifying conversation.

Always stay calm. After all, both parties have signed a contract in which the possibility of this procedure was expressly agreed upon. I cannot accuse the developer of any insolence here. I would be especially cautious with any speculations regarding the company's financial health.
The expert would rather ask whether the contractor can still obtain a guarantee from a bank if the financial situation is really that bad?:cool:

The developer will no longer be willing to waive a significant part of his compensation shortly before completion. That is completely normal. Nothing changes for the client. If the construction is not completed, he can claim the guarantee. Of course, it is more convenient for the client to act with a bundle of money in hand. Many dream of that.
The developer is entitled to this right to retain security against providing a guarantee in accordance with the Construction Code. So this wouldn't even necessarily have to be regulated contractually.

I would absolutely not consider a self-debtor guarantee payable on first demand as problematic. There is money immediately when the document is presented.:rolleyes:

I would require a written, irrevocable, unconditional, and unlimited guarantee from a credit institution authorized to conduct business domestically.
The guarantee declaration should include the waiver of the defense of avoidance, set-off, and prior action (§ 770, 771 Construction Code) except for undisputed or legally established counterclaims.

Everything will be fine.