New legislation in favor of the skilled trades. (Photo: © kzenon/123RF.com)
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February 2017
For the first time, tradespeople will have a legal right to reimbursement of removal and installation costs. This will finally change the previously disadvantageous legal situation.
The parliamentary groups in the Bundestag have agreed on a new law governing defects and construction contracts. The draft takes into account the demands of the skilled trades in almost all respects. Most importantly, suppliers of defective materials will in future be required to reimburse the tradespeople who installed them not only for the material costs, but also for the installation and removal costs. Previously, the law denied tradespeople such compensation.
Holger Schwannecke , Secretary General of the German Confederation of Skilled Crafts (ZDH) : "The reform will noticeably improve the legal situation for tradespeople in warranty cases. It is therefore a major success for the skilled trades. With their compromise, the parliamentary group rapporteurs have made it clear that in the future, the party responsible for the material defects will be liable for the consequences of defective materials. This is right and fair."
In addition, the law now covers all material-processing craft businesses. The draft law initially only covered cases where craftsmen installed materials. Other activities, such as painting and varnishing, were originally not covered. Furthermore, craftsmen now have the right to choose the method of rectification. They decide whether the supplier must pay them money or carry out the repair at the customer's premises. The original draft law still gave the supplier the right to choose.
Merchants can exclude their liability in their general terms and conditions (GTC). The trades sector's demand for a legally sound provision regarding GTCs was not met due to resistance from the CDU . Politicians argue that the Federal Court of Justice's jurisprudence offers sufficient protection for businesses. The case law treats typical craft businesses in this context like consumers, thus protecting them from liability exclusions in their suppliers' GTCs, they contend. This conviction is to be explicitly emphasized and recorded in a statement of record by the Bundestag's Legal Affairs Committee.
Operations management
Operations management
Operations management
"A legally binding T&Cs would have led to greater legal clarity," Schwannecke emphasized. "However, the solution now found provides a suitable basis for protecting small businesses from inappropriate T&C clauses. It will therefore be important that the new claims become established in business practice and that the T&C protection actually works."
Under general terms and conditions law, certain unfavorable contract clauses are invalid by law. This serves to protect consumers and therefore only applies to consumers, not between businesses. However, the courts have developed exceptions to this principle over decades of case law. Unfavorable general terms and conditions clauses are also said to be invalid for small businesses and tradespeople.
According to the coalition parties' wishes, the Bundestag is to pass the law by the end of March 2017. Due to the need for practical adjustments, the reform is to enter into force on January 1, 2018. In order to identify the actual impact of the law and any need for improvements, the law will be evaluated in the foreseeable future.
Photo: © kzenon/123RF.com
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