Craftsmen should demand advance payments

Unfortunately, payment morale isn't great in Germany. One of the most important ways to protect yourself against bad debts is to make advance payments.

This article is part of the special topic Tax bonus for tradesmen's invoices: What you should know

Craftsmen should insist on an initial payment early on. In 2009, the legislature The Claims Security Act has significantly strengthened the position of craftsmenWhat some contractors aren't yet fully aware of is that, by law, they can now invoice advance payments at any time. The prerequisite is that the client has realized an increase in value through the work underway. For example, if the ground floor of a four-story building is completed. Advance payments can also be demanded for delivered materials and components.

"To avoid trouble, it is recommended to To contractually stipulate discounts, even if they are provided for by law," says Anne Kronzucker, a lawyer at DAS Legal Protection Insurance. However, she advises using this instrument sparingly: "Clients often react suspiciously when they receive too many invoices too early."

As a rule of thumb, tradespeople should estimate the initial payment upfront for materials. The next invoice is issued after the preparatory work is completed. The customer pays the remainder when the job is finished.

The increase in value must be documented

However, the craftsman not the right to demand advance payments of any amountIn general, the individual installments must correspond to the increase in value. A clear and verifiable breakdown of the services is important. The invoice must clearly show how the increase in value is broken down.

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The craftsman therefore has the duty to To accurately document the progress of the projectSuitable documents include timesheets, measurements, or other documentation. A special rule also applies to work contracts with consumers: The tradesman must provide a security deposit of five percent of the contract amount with the first installment payment – ​​to ensure timely completion of the work.

"The FordePayment is due as soon as the craftsman has proven his services, which is usually upon receipt of the invoice," explains the lawyer. "It is therefore advisable to send it by registered mail with return receipt."

In case of minor defects, the customer may not refuse payment

Disagreements often arise when the client complains about defects. However, they may not generally refuse payment for minor defects.However, the customer has the right to retain double the coststhat are incurred to remedy the defects – no matter how serious they are," explains the legal expert.