Project-Based Contract Template for Germany

A Project-Based Contract (Projektvertrag) sets clear terms for completing a specific business project in Germany, typically with defined deliverables and a fixed end date. These agreements spell out exactly what work needs to be done, when it should be finished, and how much it will cost - making them different from ongoing service contracts under German Civil Code (BGB).

Under German law, these contracts must include detailed project milestones, payment schedules, and quality requirements. They're especially common in IT development, construction, and consulting sectors, where companies need precise control over project scope and outcomes. The contract ends once the agreed deliverables are complete, offering both parties clear expectations and legal protection.

Use a Project-Based Contract when you need precise control over a specific, time-bound business initiative in Germany. These contracts work perfectly for software development projects, construction work, consulting engagements, or research assignments where you can clearly define the end result and timeline.

This contract type proves especially valuable when working with external partners, as it helps prevent scope creep and budget overruns under German contract law (BGB). It's essential for projects requiring specialized expertise, strict quality standards, or complex deliverables - particularly when your business needs to maintain clear documentation for regulatory compliance or audit purposes.

• Fixed-Price Project Contracts: Define exact costs and deliverables upfront, ideal for construction or IT projects with clear specifications
• Time-and-Materials Contracts: Bill based on actual hours and resources, common in consulting or development work with flexible scope
• Milestone-Based Contracts: Structure payments around completion stages, popular in large-scale German engineering projects
• Hybrid Project Contracts: Combine fixed and variable elements, often used in research and innovation projects
• Framework Project Agreements: Set general terms for multiple related projects, typically used by large corporations managing ongoing initiatives

• Project Managers: Lead the contract execution, oversee deliverables, and ensure compliance with agreed terms
• Corporate Legal Teams: Draft and review Project-Based Contracts to protect company interests and ensure BGB compliance
• External Contractors: Deliver specified project outcomes while adhering to contract terms and quality standards
• Department Heads: Define project requirements, approve budgets, and sign off on contract terms
• Procurement Officers: Negotiate terms, manage vendor relationships, and ensure contract alignment with company policies
• Finance Teams: Handle payment schedules, track project expenses, and maintain financial documentation

• Project Scope: Define clear deliverables, timelines, and quality standards for the specific work
• Party Details: Gather complete legal names, addresses, and registration numbers of all involved companies
• Budget Planning: Calculate total costs, payment schedules, and any milestone-based compensation
• Technical Requirements: Document specific technical specifications, tools, or methodologies needed
• Risk Assessment: Identify potential project risks and appropriate mitigation measures under German law
• Compliance Check: Review BGB requirements and industry-specific regulations affecting your project
• Review Process: Plan internal approval steps and establish change management procedures

• Party Information: Full legal names, addresses, and registration details of all contracting parties
• Project Definition: Detailed scope, deliverables, and quality standards per BGB requirements
• Timeline Specifications: Start date, completion milestones, and final delivery deadline
• Payment Terms: Price, payment schedule, and invoicing requirements in compliance with German law
• Change Management: Procedures for scope modifications and additional work requests
• Liability Clauses: Risk allocation, warranty terms, and limitation of liability provisions
• Termination Rights: Conditions for contract termination and associated consequences
• Dispute Resolution: Jurisdiction choice and conflict resolution procedures

A Project-Based Contract differs significantly from a Service Contract in several key ways under German law. While both involve professional services, their structure and application serve distinct business needs.

• Duration and Scope: Project-Based Contracts have a defined end point tied to specific deliverables, while Service Contracts typically run continuously with ongoing obligations
• Payment Structure: Project contracts often use milestone-based payments or fixed prices, whereas Service Contracts usually involve regular periodic payments
• Success Metrics: Project contracts require concrete, measurable outcomes; Service Contracts focus on maintaining quality standards over time
• Risk Allocation: Project contracts place more emphasis on delivery guarantees and completion dates, while Service Contracts focus on performance standards and availability
• Termination Terms: Project contracts typically end upon completion, while Service Contracts require specific notice periods under German law