Security retention

Back to the beginning.

Why a VOB contract as a private person?
Was the VOB effective agreed upon with private individuals?
The hurdles for this are high!
As a rule, one ends up again with the Building Code contract through the interpretation of case law. And thus with § 632a III or IV Building Code regarding advance payments or withholdings / securities.

According to the Building Code:
- 5% of the total amount is withheld from the first installment (or a guarantee is provided).
- All subsequent installments are paid without withholding.
- If the remuneration claim/the total amount increases by at least 10%, a security in the amount of 5% of the additional remuneration claim must be provided (guarantee) or withheld with the next installment payment.
- The withholding is due upon completion of the work (not after 10 years).

Hello Bieber0815,

thank you for the good explanation! With your explanation and the text in § 632a III I understood it. :)