Shocking construction revolution: The new building type E changes everything!

Shocking construction revolution: The new building type E changes everything!

There is currently intensive discussion in Germany about the new “Building Type E”, which is designed as an innovative contract type and allows deviations from existing standards in the construction industry. This discussion has now also reached Austria, where builders are confronted with a multitude of rules, standards and laws in order to obtain a building permit. Failure to comply with such building laws will result in a building permit not being issued, and funding will also not be granted if technical guidelines are ignored. This creates a complex legal environment that puts buyers in a position to demand warranties if generally accepted rules of technology are not followed.

Tenants can similarly request rent reductions if the usability of their rental apartment is not guaranteed. Interestingly, there are cases in which minor violations of the technical rules do not cause any relevant damage and are classified as a “defect without damage”. These legal and practical challenges are in addition to rising construction costs, which in recent years have made implementing costly standards economically prohibitive.

The approach of building type E

In order to meet these challenges, “Building Type E” is intended to enable more cost-effective construction by introducing lower quality standards. The new type of contract allows deviations from recognized technical rules without the entrepreneur being obliged to explain this in detail. However, the existing legal situation remains in force for consumers and non-expert entrepreneurs. The critics of these initiatives, including the Federal Court of Justice (BGH), have not questioned the goal of simplification, but rather criticize the proposed path, in particular the lack of transparency.

As part of the debate, the BGH suggests developing standardized guidelines to educate end consumers. The “Hamburg Standard” was also launched in Hamburg, which aims to reduce construction costs and optimize construction processes. However, it is important to note that in Austria there are differences between federal and state legislatures that affect the regulation of construction procedures.

Changes in building law and their effects

The Federal Ministry of Justice is also planning to change the term “recognized rules of technology” in the Civil Code (BGB). New presumptive regulations are intended to ensure that equipment and comfort standards are generally not recognized rules of technology for all construction contracts. However, the opposite presumption should apply to safety-relevant technical standards. These regulations limit the building contractor's responsibility, which is not without controversy.

A few concrete examples illustrate how building law is being adapted. According to DIN standard 18015, at least four sockets are no longer required in small living rooms. According to DIN EN 12831-1, underfloor heating no longer necessarily needs to be supplemented with a towel radiator. These changes apply in particular to contracts between expert entrepreneurs, where information about the risks and consequences of deviations from the recognized rules of technology is no longer required.

In summary, it should be noted that changes in warranty law alone cannot solve all challenges in the construction industry. Technical regulations and ÖNORMEN do not have a binding legal quality, which leads to uncertainty in everyday construction work. A multi-step process involving comprehensive policy reviews and removal of excessive standards is necessary to ensure uniformity at the local and federal levels. These measures could achieve the goal of making construction easier and more cost-effective while still maintaining consumer protection.

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