contracts
Change Order in Germany: Template and Key Clauses (2026)
A change order in Germany is a document that records a change to the scope, price or time of an existing contract, most often a construction contract (Bauvertrag) or a contract for work (Werkvertrag). What makes the German version specific is that the Civil Code gives the client a statutory right to order changes and sets out how the extra payment is calculated, and that most building projects also run on the VOB/B standard terms. This guide explains how change orders work, the key clauses and a drafting skeleton. It is general information, not legal advice; confirm a live deal with a qualified local lawyer. ## The statutory right to order changes: BGB 650b and 650c Since the 2018 construction-contract reform, the BGB gives the client of a construction contract a right to order changes. Under section 650b BGB the parties should first try to agree a change and the adjusted price; if they cannot agree within a set period, the client may order the change unilaterally in defined circumstances. Section 650c BGB then governs how the additional or reduced remuneration is calculated, based on the actually required costs with reasonable overhead and profit. This statutory mechanism is a defining feature of German change orders, so a change order should be consistent with it rather than only with what the parties negotiate. ## The VOB/B standard terms Many German building contracts incorporate the VOB/B (Vergabe- und Vertragsordnung fuer Bauleistungen, Part B), a widely used set of standard construction terms. The VOB/B has its own rules on changes to the work and on how varied or additional work is priced. If a contract incorporates the VOB/B, draft change orders to fit those rules. Where the VOB/B and the BGB both bear on a point, confirm which governs for the specific contract. ## Werkvertrag basics and VAT A contract for work (Werkvertrag) owes a defined result and carries rules on acceptance (Abnahme) and defect liability, which a change can affect. VAT (Umsatzsteuer, USt) applies under the German VAT Act at the standard 19 percent rate for most construction services. A change order that increases the price increases the VAT base, so state whether the amount is inclusive or exclusive of USt. ## Key clauses in a German change order - Reference to the base contract: name the contract, date and parties, and confirm other terms continue.
- Basis of the change: whether it is agreed under section 650b BGB, ordered unilaterally, or made under the VOB/B.
- Description of the change: a precise statement of the altered works.
- Remuneration: the adjusted price and how it is calculated, consistent with section 650c BGB or the VOB/B.
- Time: any adjustment to the construction period.
- Acceptance and defects: the effect on acceptance (Abnahme) and defect liability.
- VAT (USt): treatment of the added value.
- Governing law: German law and jurisdiction. ## A simple drafting skeleton 1. Title, change-order number and date
- Reference to the base contract and parties
- Basis of the change (section 650b BGB or VOB/B)
- Description of the varied works
- Remuneration and calculation (section 650c BGB or VOB/B)
- VAT (USt) treatment
- Adjustment to the construction period
- Effect on acceptance and defect liability
- Statement that other terms continue
- Signatures Give the most attention to the basis of the change and the remuneration calculation, because the BGB sets a specific method for pricing ordered changes. ## Common mistakes to avoid - Ignoring the client's statutory right to order changes under section 650b BGB and the pricing rule in section 650c BGB.
- Pricing a change freely when the VOB/B or the BGB prescribes a method.
- Overlooking the effect of a change on acceptance (Abnahme) and defect liability.
- Treating a Werkvertrag like a simple service contract.
- Leaving VAT (USt) silent on the varied amount. ## The negotiation window and interim pricing The way section 650b BGB sequences a change is worth understanding. The client first requests the change, and the parties are expected to try to agree both the change and the adjusted price. German law sets a short window for this attempt; if no agreement is reached within it, the client may, in the defined circumstances, order the change, and the work proceeds while the price is settled under the method in section 650c BGB. To manage cash flow during that gap, the law allows the contractor, in defined cases, to claim a portion of the extra remuneration on account. A well-drafted change order records which stage applies: an agreed change with a fixed price, or an ordered change with the price to be determined by the statutory method. ## Documentation and acceptance Keep the request, the negotiation and the order in writing, along with the cost basis used to price the change, because section 650c BGB ties the extra payment to the actually required costs plus reasonable overhead and profit. Note too that a change can affect acceptance (Abnahme) and the defect-liability period for the varied work, so record how the change fits the acceptance process. Clear documentation protects both sides if the pricing or the time effect is later disputed. ## Keeping a contract portfolio under control One German change order is manageable by hand. A portfolio is not. The hard part is tracking which version is current, when each notice period runs, which clause carries risk, and which renewal is due. That work (drafting from a tuned template, flagging risky clauses, tracking dates, keeping versions straight) is what an AI contract workspace can hold in one place. Adira is built for this, with per-clause risk review, plain-English clause editing and a live activity timeline. It is India-first today, with other jurisdictions architected but not yet at the same depth, so verify local depth before relying on it for German law. More at Adira. The law above stands on its own. ## Bottom line A German change order must fit the statutory change regime of the BGB (section 650b on ordering changes, section 650c on pricing) and, where incorporated, the VOB/B standard terms, while handling acceptance, defect liability and VAT (USt). Price the change by the prescribed method, and get German construction advice for anything contentious.
Frequently asked questions
- Can a client order a change in Germany?
- Yes, for a construction contract. Since the 2018 reform, section 650b BGB lets the parties first try to agree a change and its price, and if they cannot agree within a set period the client may order the change unilaterally in defined circumstances. Section 650c BGB then governs how the extra or reduced payment is calculated.
- How is a change priced under German law?
- Under section 650c BGB the adjusted remuneration is based on the actually required costs with reasonable overhead and profit. Where a contract incorporates the VOB/B standard terms, its own pricing rules for varied or additional work apply instead. Confirm which governs the specific contract.
- What is the VOB/B?
- The VOB/B (Vergabe- und Vertragsordnung fuer Bauleistungen, Part B) is a widely used set of standard construction terms in Germany. Many building contracts incorporate it, and it has its own rules on changes to the work and pricing, so change orders should be drafted to fit it where it applies.
- Is VAT charged on a German change order?
- Yes, on the added value. German VAT (Umsatzsteuer, USt) applies at the standard 19 percent rate for most construction services. State whether the change-order amount is inclusive or exclusive of USt.
- Is this guide legal advice?
- No. It is general information. German construction law combines statutory rules with standard terms and the facts matter, so confirm with a qualified German lawyer before relying on it.
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