General provisions of contract for engineering services

The execution of engineering performances assumes mutual trust between engineer and client, if the engineer is acting as administrator of the client. Herefrom result the following mutual responsibilities and rights which are firmly agreed and are part of the engineering contract.

§ 1 Responsibilities and rights

(1) The engineer is obliged to effect the contractual performances according to the acknowledged rules of technology, the policy of profitability and the appropriate conditions regulated by public law. Within the scope of the agreed performances, he has to inform the client about all essential concerns during the execution of his tasks. If it is recognisable that the anticipated building costs will be exceeded, the engineer is bound to inform the client immediately. After determination of his performance and the remuneration he has to hand over the approved documents, copies of the original drawings and other documents at the client’s request. He is not obliged to keep than longer than 10 years.

(2) The client is engaged to help on the planning and execution of the construction. He has particularly to decide upcoming questions and to effectuate required approvals as soon as possible. He is only allowed to give instructions to others involved in the construction by consent of the engineer as far as his duties are concerned. Moreover, the client is obliged to allow the engineer to look at all documents concerning contractual performances and their remuneration.

§ 2 Representation

(1) Within his scope of performance, the engineer has the right and is obliged to protect the rights of his client. He is only allowed to assume financial obligations for the client, if danger is looming and if the consent of the client cannot be obtained.

(2) The engineers exercises his profession without any interests in production, trade or supply.

§ 3 Remuneration

(1) The client is obliged to effect partial payments according to the effected performances or according to the provided instalment plan on demand of the engineer All remunerations become due on receipt of the invoice. The regulation of the BGB (German Civil Code) are in force.

(2) The remuneration for all performances, for the special performances and for possible additional performances becomes due when the engineer has effected the performance contractually and has submitted an auditable final settlement or a partial final settlement of these performances. The same is valid for performances for engineering works or traffic facilities and referring to the remuneration of on-site building inspection. A time period of 15 days is agreed for the verification of the final settlement.

(3) The remuneration for the performances in connection with the supervision and assertion of warranty claims against companies effecting the construction becomes due after the supply; paragraph 2 is imperative accordingly.

(4) A charging or the assertion of a right of retention against the remuneration of the engineer is only legally allowed with an undoubted or legally determined payment request.

§ 4 Liability

(1) The engineer is liable for intention and gross negligence unlimited according to the statutory provisions. In all other cases, his liability is restricted – whatever of which legal reason – to damages which are covered by the liability assurance agreed in the contract. For damages, which are exceptionally non-insurable, the engineer is liable up to the amount of the remuneration for the work phase in which the damage occurred.

(2) In case of demands on the engineer, he has the right to ask to transfer the removal of the damage to him.

(3) The liability of the engineer does not extend damages which were caused by contributory negligence of a third party who was engaged by the client and against this engagement the engineer had justified reservations.

§ 5 Limitation/Length of warranty/Period of liability

(1) Demands of the client on the engineer prescribe, whatever of which legal reason, after 5 years, if there is no other limitation agreed in the contract. If the demands of the client on others involved in the planning and execution of the object/objects prescribe at an earlier date, the period of prescription for all demands of the client referring to the performances of this contract expire at the same date. This is not valid, if the engineer has concealed the damage maliciously.

(2) § 196 No. 7 BGB (German Civil Code) will remain unaffected.

(3) The period of prescription starts with the acceptance of the final performance to be effected according to the contract, or at latest with acceptance of the works to be effected in work phase 8 according to part VII of HOAI (Fee Structure for Architects and Engineers) including on-site building inspection according to § 57, § 3 (2) AVI (General Contract Conditions to Engineering Contract) will remain unaffected.

(4) The period of prescription for performances, which have to be effected lateron, prescribes with acceptance of the latest performance.

§ 6 Copyright

(1) Copyrights are not transferred by this contract.

(2) The client has not the right to use the planning for another project than as for this.

§ 7 Cancellation

(1) Client and engineer can only cancel the contract partially or in full due to important reasons, and without observation of the period of cancellation.

(2) If the contract is cancelled due to reasons for which the engineer is responsible for, he has the right of remuneration only for performances effected before cancellation.

(3) In case of cancellation of the contract due to reasons for which the engineer is not responsible for, he has the right of the agreed remuneration even for performances which have not been effected. But he is obliged to deduct the expenses he is saving or the savings he is earning by further use of his manpower or by not using his manpower maliciously due to the cancellation of the contract. If the client does not prove a bigger percentage of saved expenses, a percentage of 40% of the remuneration of the engineer for non-effected performances is agreed.

§ 8 Final clause

(1) Modifications, supplements and subsidiary agreements must be in written form.

(2) If new respective fee regularities or a new version of the Fee Structure for Architects and Engineers (HOAI) are coming into force, both parties will negotiate an adequate adjustment concerning the performances not yet effected.

(3) If terms of this contract are void, the validity of the other terms is not concerned. Instead of the void terms, it is in force what is nearest to the designated intention and which is at the same time legally allowed.