would you buy a car or a mobile phone contract with a contract like this? IT CAN all go wonderfully, but in case of emergency it's not even really clear which law is to be applied. your future self will roll their eyes at problems and think "how could I have signed this".
there must be a start point and an end point included. you can also phrase it like this: "start within X weeks after building permit and clearing (?) of the property by the builder" "completion at the latest X months after start of construction, prevention caused by external circumstances or weather conditions excluded" (I am not a lawyer, only built with VOB, and had to read this nonsense often enough...)
the contractual penalty is part of the VOB, whether it is stated in the contract or not (I am not a lawyer) - but it seems to me that the contractor himself does not really know what he is doing and wanted to adapt the contract to his advantage from the VOB.
if 5. states a 5% retention, does the text of 5. also mention 6. security?
if there is no upper limit for security, you can retain 5% on each payment, without an upper limit... and only pay with the final invoice.
if an execution guarantee is missing, that means: if the company goes bankrupt, you are screwed.
the purpose of the execution guarantee is to have a little sweetener for a new company as cash in the pocket when the old one goes bankrupt.
whether 4 or 5 years, it doesn't matter. after one year at the latest, it will be argued whether it is normal wear and tear, maintenance backlog by the builder, wear, etc...
just some thoughts from a non-lawyer. I think if you went to a lawyer, they would advise against it.
if the construction runs smoothly, a handshake is enough.