International Construction Law Review
TIME AND ACCELERATION ISSUES AFFECTING INTERNATIONAL CONSTRUCTION CONTRACTS: THE GERMAN APPROACH
DR STEFAN OSING
Partner, Heuking Kühn Lüer Wojtek, Düsseldorf, Germany
Construction projects are—especially in times of pricing pressure—frequently delayed by contractors, architects, experts or building advisers; nevertheless, the employer can also be responsible for a building delay. The reasons are many. Either contractually stipulated due dates are not attained or adequate deadlines are not met or are delayed or incorrect pre-contract activities lead to building delays. It is in the nature of things that delays cause considerable damage (e.g., increased interest charges, labour costs, loss of rent), which nobody wants to bear.
With regard to construction projects in Germany, but also with regard to international construction projects in which German contractors or employers are involved and which are governed by German law, the parties regularly agree on the application of the “Allgemeinen Vertragsbedingungen fürdie Ausführung von Bauleistungen” (VOB/B) (General contract Terms for the Execution of Construction works (VOB/B).1 The terms of the VOB/B, in addition to other contractual issues, regulate in particular any issues regarding challenges and building time delays and hence the rights of both parties.
The VOB/B is a pre-formulated set of clauses which was designed for the addition and partial modification of German law applicable to works and services in construction contracts. It especially serves to balance the multiple specific regulations for construction contract law in German civil law.
The VOB/B was established by the German “Vergabe- und Vertragsausschuss für Bauleistungen” (DVA). Within the DVA the public authorities and head organisations of the construction industry participate in the development of the VOB/B, with the aim of establishing regulations for construction contracts that will achieve a fair balance between the interests of employer and contractor.
The VOB/B is not a law, but has the character of General Terms and Conditions. As such it only becomes an integral part of the contract if its application is explicitly required by the contract. This usually happens by one contracting party arranging for the application of the VOB/B in its own
Pt 3] Time and Acceleration Issues: The German Approach
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