The Builder Demand Letter is a crucial document in the German construction industry used when payment for completed construction work remains outstanding. It serves as a formal payment demand (Mahnung) under German law and is typically issued after regular invoices have gone unpaid. This document must comply with specific requirements of the German Civil Code (BGB), particularly regarding payment terms and notice provisions. The letter should include detailed information about the completed work, reference the original contract, specify exact amounts owed, and set clear payment deadlines. It often precedes legal action and can be used as evidence in court proceedings if payment remains outstanding. The document is particularly important as it triggers legal consequences under German law, including the start of default interest accrual and the potential for legal enforcement proceedings.
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1. Sender Details: Full company name, address, and contact information of the building contractor
2. Recipient Details: Full name and address of the client/debtor
3. Date and Reference Numbers: Current date and all relevant reference numbers including contract/project numbers
4. Subject Line: Clear indication that this is a formal payment demand (Zahlungsaufforderung)
5. Contract Reference: Brief reference to the underlying construction contract and project
6. Work Completion Statement: Confirmation of work completed and acceptance by the client
7. Payment Details: Detailed breakdown of amounts owed, including original invoice numbers and dates
8. Legal Deadline: Clear payment deadline and consequences of non-payment, including interest rates per BGB §288
9. Bank Details: Company's bank account information for payment
10. Signature: Authorized signature and company stamp if applicable
1. Previous Communications: Reference to previous payment requests or relevant communications, used when there have been prior attempts to collect
2. Partial Payments: Acknowledgment of any partial payments received, included when applicable
3. Dispute Reference: Address any known disputes or objections raised by the client, included when there are existing disputes
4. Legal Proceedings Warning: Warning about potential legal action, included in final demand letters
5. Interest Calculation: Detailed calculation of accrued interest, included when claiming interest on overdue amounts
1. Original Invoice(s): Copies of all relevant invoices being demanded
2. Contract Extract: Relevant sections of the construction contract showing payment terms
3. Work Completion Documentation: Proof of work completion and acceptance (Abnahmeprotokoll)
4. Previous Correspondence: Copies of relevant previous payment requests or communications
5. Performance Documentation: Photos, reports, or other evidence of completed work if relevant
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