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 Central Association of German Skilled Crafts (ZDH)"The reform will noticeably improve the legal situation for craftsmen in warranty cases. This is a great success for the skilled trades. With their compromise, the parliamentary group's rapporteurs make it clear that in future, the person responsible for the defective materials 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.
However, retailers can exclude their liability in their general terms and conditions (GTC). The trade's demand for the regulation to be made binding in terms and conditions has not been met due to opposition from the CDU.. DPoliticians point out that the Federal Court of Justice's case law provides sufficient protection for businesses. The argument goes that the case law treats typical craft businesses like consumers in this context and thus protects them from liability exclusions in their suppliers' general terms and conditions. This conviction should be explicitly emphasized and recorded in a statement of record of 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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