Document background
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.
