Security deposit / refusal to perform

Hello! Our architect is now demanding a security deposit before the completion of the contracts for work. The reason: we did not make the interim payments on time recently. However, we immediately objected to this because individual invoice items were not explainable to us. There was definitely no delay!
The invoices were issued to us with a payment term of 7 days. Initially, it was 14. Which payment term is generally customary?
The demand for the security deposit is a prerequisite for further cooperation.
She is announcing a refusal to perform if we do not agree to this.
What happens if I do not agree, and the architect carries out her threat? What options do I have to claim damages?
Best regards

Good evening,

which advance payments have you made for what and for what reason were they paid late?

What ZZ was agreed upon in the contract with the ? architect?

What should the damages be based on?

Rhenish greetings from on the road
Construction expert

Good morning! No ZZ was recorded in the contract. Within the contract, payments were regulated according to HOAI (1.15% upon submission of the preliminary draft, 2.35% upon receipt of the building permit, 3.10% upon completion of the working plans ...). There was inconsistency and lack of verifiability because I received an installment payment twice, but with different construction sums. And this, although we discussed the construction costs in detail in a personal conversation beforehand. The damages claim could be based on the fact that I have to hire a new architect. This architect must assume liability for the entire planning and also perform double work, which will also be charged.

How much later did you settle the amount then?

As an accountant, I know both the private perspective and the company's perspective.
A duplicate invoice should be resolved quite quickly.
In case of discrepancies in items, you can withhold the corresponding items and transfer the rest. This always works better than a complete withholding. A company is not a currency exchange after all and initially advances payments. Eventually, they want their money too.

By the way, unless a due date is agreed upon, immediate maturity applies legally to my knowledge.

Good evening,

unless there are written agreements regarding the payment terms, the statutory payment period applies, which is derived from § 286 of the Building Code. But any specified payment term on an invoice "overrides" the legal provisions; nevertheless, you are in default after 30 days - with all consequences.

A security deposit can only be demanded if it was contractually agreed upon beforehand. So you should check your contract.

The compensation claim could be based on the fact that I have to hire a new architect. This person must take over liability for the entire planning and also perform duplicate work, which will also be invoiced.

You are proceeding in a piecemeal manner (cool term Volker). In this respect, I cannot say anything about the possibility of compensation. Legally, I am not allowed to consider it anyway ;)

Rhenish greetings

Our architect is now demanding a security deposit

What exactly does that mean? Are you supposed to provide a bank guarantee, deposit a cashier’s check, entrust your mother-in-law? Or maybe transfer cash? How much? Just curious ... If you have paid the invoices and have a contract with the architect, he cannot simply withdraw, INAL. On the other hand: if he refuses to perform, you won’t be happy either if you have to force him to render the services (through legal action). So there is either an amicable agreement on continuing the cooperation (talk to each other!) or you go your separate ways as quickly as possible. If the latter applies, you have to see how to get out of the affair as gracefully as possible.