Standard construction terms

German construction runs on the VOB — a standard set of contract terms, technical conditions and award rules, maintained by a permanent committee of public clients, contractors and professional bodies. Most German building work is performed under the same document.

The further period

Where performance is late, a German creditor generally cannot simply withdraw from the contract. He must first set a reasonable further period and let it run — § 323 Abs. 1 BGB. The law builds a second chance into lateness. What is not tolerated is the failure that survives the second chance.

Counsel at the table

German companies bring legal counsel into commercial negotiations early and as a matter of course, not as an escalation. The lawyer’s presence changes the register. It is difficult to appeal to a relationship across a table with a Justiziar at it, and that is part of why they are there.

Works peace

Betriebsfrieden. Works peace. A concept in German labour law: the works council and employer are under a statutory duty to cooperate in a spirit of mutual trust and to refrain from acts that disturb it. Peace inside the firm is a legal object, with duties attached to preserving it.

At-will

The default American employment relationship can be ended by either side at any time, for any lawful reason, without notice. There is no equivalent of a statutory notice period accruing with service. Availability is not protected by anything.

Notice periods

Kündigungsfristen. German statutory notice periods lengthen with service: from four weeks at the start, rising by steps, to seven months for someone with twenty years behind them. Time served converts into legal protection at a fixed exchange rate written in the Civil Code.

The date must be agreed, not imposed

That automatic default only applies where the date was fixed by contract, by statute or by court judgment. A payment deadline written unilaterally on an invoice does not count — the Federal Court of Justice has held that it is merely an offer of credit terms.

A deadline one party announced is not a deadline. It has to have been agreed.

The written warning

Die Abmahnung. German employment law generally requires a formal written warning before a conduct-based dismissal, stating the behaviour, why it is unacceptable, and what happens if it recurs. The employer cannot escalate directly. The law inserts a step and requires it to be documented.

Who the subcontractor tells

Under German construction practice a subcontractor directs his notice of concerns to his own main contractor, not to the building owner. Notifying only the supervising architect is unreliable unless that architect is demonstrably authorised to receive such declarations.

The chain of responsibility is precise, and the courts have ruled on who counts as the right recipient.

Exempt employees

American wage law divides employees into those entitled to overtime pay and those exempt from it, and exempt status covers most professional and managerial roles. For those workers the law places no limit on hours and requires no additional payment.

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