A German builder does not have to rely on trust to be paid. Section 650f of the Civil Code gives him the right to demand security from the client. It begins: Der Unternehmer kann vom Besteller Sicherheit für die auch in Zusatzaufträgen vereinbarte und noch nicht gezahlte Vergütung … verlangen. The contractor can demand security from the client for the agreed fee not yet paid, including the fee for additional orders. Another 10 percent is added for related claims. The security is usually a guarantee from a bank or a credit insurer.
A craftsmen’s magazine explains that the builder can demand it at any time after the contract is signed. If the client does not provide it within a reasonable deadline, the builder may stop work or end the contract. Eine von den Absätzen 1 bis 5 abweichende Vereinbarung ist unwirksam. An agreement that departs from these rules is void. The rule does not apply to public bodies that cannot go bankrupt. It also does not apply to a consumer under a consumer construction contract.