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=S=> BGB 648a. 1 A contractor for a building , outdoor facilities or a part thereof may demand a security from the customer for the remuneration also agreed in additional commissions and not yet paid , including associated incidental claims , which are to be estimated at ten per cent of the remuneration claim to be secured . Sentence 1 also applies to the same degree to claims replacing the remuneration . The claim of the contractor for a security is not ruled out by the customer being able to demand fulfilment or having accepted the work . Claims with which the customer is able to offset against the contractors right to remuneration are disregarded when calculating the remuneration unless they are non-contentious or have been ascertained with the force of law . The security is to be deemed sufficient even if the provider of the security reserves the right to revoke his promise , in case of substantial deterioration of the financial circumstances of the customer , with effect for claims to remuneration for building work that the contractor has not yet performed when the declaration of revocation is received .
=S=> BGB 648a. 2 The security may also be provided by means of a guarantee or other promise of payment by a banking institution or credit insurer authorised to conduct business operations within the area of application of this Code . The banking institution or credit insurer may only make payments to the contractor to the extent that the customer recognises the claim of the contractor to remuneration or has been ordered by a provisionally enforceable judgment to pay the remuneration and the requirements are met under which execution of judgment may be commenced .
=S=> BGB 648a. 3 The contractor must pay to the customer the customary costs of provision of security up to a maximum amount of two per cent per year . This does not apply to the extent that the security must be maintained because of objections of the customer to the remuneration claim of the contractor and the objections turn out to be unfounded .
=S=> BGB 648a. 4 To the extent that the contractor has obtained a security for his claim to remuneration under subsections ( 1 ) and ( 2 ) , the claim to be granted a mortgage under section 648 ( 1 ) is excluded .
=S=> BGB 648a. 5 If the contractor has unsuccessfully set the customer a suitable deadline to provide the security in accordance with subsection ( 1 ) , the contractor may refuse to carry out the work or may terminate the contract . If he terminates the contract , the contractor is also entitled to claim the agreed remuneration ; he must however allow set-off of the expenses he saves as a result of cancelling the contract or acquires or wilfully fails to acquire from other use of his labour . There is a presumption that the contractor is accordingly entitled to five percent of the remuneration accounted for by the part of the work not yet provided .
=S=> BGB 648a. 6 The provisions of subsections ( 1 ) to ( 5 ) are not applicable if the customer is a legal person under public law or a special fund under public law with regard to the property of which insolvency proceedings are not permissible , or is a natural person and is having the construction work done to build or repair a one-family house with or without a self-contained apartment attached . Sentence 1 No . 2 does not apply if the construction project is looked after by a construction agent authorised to dispose of the financial resources of the customer .
=S=> BGB 648a. 7 Any agreement deviating from the provisions of subsections ( 1 ) to ( 5 ) above is ineffective .
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