Contract for Work (Werkvertrag)
A contract type under Section 631 of the German Civil Code (BGB) where a specific result is owed, not merely the activity.
Under a Werkvertrag, governed by Section 631 BGB, the contractor commits to producing a specific work, meaning a concrete result. What is owed is not merely the activity but the finished, defect-free outcome, for example a completed building, a repaired machine, or custom-developed software.
Payment generally becomes due only once the work has been accepted. Acceptance is the client's declaration that the work has been received as substantially in line with the contract, and it also marks the transfer of risk and the start of the warranty period.
Typical use cases include construction work, plant engineering, repairs, or the creation of custom software based on a requirements specification and functional specification. If the contractor fails to reach the agreed result, this generally constitutes a defect, regardless of how much effort was actually invested.
Distinguishing a Werkvertrag from a service contract is often decisive in practice, since it determines whether a concrete result is owed or merely a diligent effort.
Practical Example
A machine-building company commissions an external provider to develop a custom special-purpose machine according to a jointly agreed functional specification. Payment becomes due only once the machine reaches the agreed performance figures and is accepted.
How Leanshift Helps
Clear work and deliverable descriptions, as a Werkvertrag requires, are also the foundation of clean process definitions. Leanshift relies on equally clear, verifiable target pictures when developing solutions.
Frequently Asked Questions
When does payment become due under a Werkvertrag?
Generally only after the client has accepted the finished work.
What happens if the work is defective?
The contractor must provide subsequent performance under warranty before the client can pursue further rights such as withdrawal or a price reduction.
Is custom software development always a Werkvertrag?
Often yes, when a concrete result is agreed, but the exact classification depends on the individual case and does not replace legal advice.