Comparing construction companies (Berlin): creditworthiness, guarantees and pre-qualification

Compare construction companies on more than price: consider company-specific criteria such as the commercial register and creditworthiness, prequalification, guarantees, insurance and references. For larger construction companies — usually organised as GmbHs and covering several trades — this evidence matters more than for an individual trade business. This is particularly important in Berlin, where construction had one of the highest insolvency rates of any sector in 2025.⁵ This guide explains which criteria are reliable and how to recognise a reputable construction company.

Key points at a glance

• A construction company is a larger generalist (often a GmbH, covering several trades); a trade business usually covers a single trade
• Reliable checks: commercial register, creditworthiness/insolvency check, prequalification (PQ-VOB), guarantees, public liability insurance, reference projects
• Prequalification (PQ-VOB) is an advance suitability assessment — there are 5 assessment bodies nationwide, one in Berlin¹
• According to the BGH, a performance guarantee of up to 10 % of the contract value is permissible in standard terms and conditions³
• As a consumer, you are generally better off with a BGB contract for work: 5 years' defect liability for the building instead of 4 years under VOB/B

Construction company or trade business — what is the difference?

A construction company is usually a larger generalist, often run as a GmbH, that coordinates several trades or carries them out with its own teams. A trade business generally covers a single trade, often one requiring authorisation. The difference is crucial when comparing: for a larger construction company, additional company-specific evidence such as creditworthiness, prequalification and guarantees makes sense — for a one-person painting business, it would be excessive. Choosing between individual trade businesses is covered in the guide Comparing contractors; for the overall picture, see the guide Finding & comparing renovation companies.

Which criteria should I use to compare construction companies?

Checking creditworthiness and prequalification

Prequalification (PQ-VOB) is an advance suitability assessment of construction companies, independent of specific contracts — public clients recognise the listing as evidence of suitability.² There are five approved prequalification bodies nationwide, one of which (Zertifizierung Bau GmbH) is based in Berlin.¹ A PQ listing certifies that suitability, capability and reliability have already been assessed — a valuable signal for private project owners too. You should also check creditworthiness through a credit report: construction recorded one of the highest insolvency rates of any sector in 2025.⁵ If your construction company becomes insolvent midway through the project, advance payments are often lost.

What guarantees can I request?

Two guarantees are customary — and should not be confused:

• Performance guarantee: Secures completion in accordance with the contract. The Federal Court of Justice has ruled that an amount of up to 10 per cent of the contract value is permissible in standard terms and conditions.³ Important: the same clause becomes invalid if the guarantee is also intended to secure defect claims beyond acceptance.⁴
• Defect liability guarantee: Secures rectification of defects arising after acceptance — around 5 per cent is standard in the market. It must be agreed separately; there is no statutory entitlement to it.

BGB or VOB/B — which contract?

As a consumer, you are usually better protected by a BGB contract for work. One key reason is that the building's defect liability period is five years under § 634a BGB, compared with only four years under § 13(4) VOB/B.⁶ In addition, VOB/B only applies to consumers if its full text has been provided — simply stating "VOB applies" is insufficient. Therefore, check carefully which contract form the construction company uses. Before signing, an independent quote review can uncover inflated prices and unclear clauses.

Frequently asked questions

What is the difference between a construction company and a trade business?

A construction company is usually a larger generalist, often run as a GmbH, that coordinates or carries out several trades itself. A trade business generally covers a single trade, often requiring authorisation. For larger companies, additional criteria such as commercial register entries, creditworthiness and guarantees are useful.

How can I assess a Berlin construction company's creditworthiness and reliability?

Check its commercial register entry (legal form, founding year, managing director), obtain a credit report on its ability to pay and — for larger companies — check the prequalification register (PQ-VOB). A long market presence and verifiable reference projects are further indicators.

What does prequalification (PQ-VOB) mean for a construction company?

Prequalification is an advance suitability assessment of construction companies, independent of specific contracts. There are five approved assessment bodies nationwide, one in Berlin. A PQ listing certifies that suitability, capability and reliability have already been assessed — primarily intended for public contracts, but also a strong quality signal for private project owners.

What guarantees can I request from a construction company?

A performance guarantee (the BGH permits up to 10 % of the contract value in standard terms) and a separate defect liability guarantee after acceptance (typically around 5 %) are customary. However, a performance guarantee must not also secure defect claims indefinitely — otherwise the clause is invalid.

Should I sign a contract under BGB or VOB/B?

As a consumer, a BGB contract for work usually protects you better, partly because the building's defect liability period is five years (§ 634a BGB) rather than four under VOB/B. VOB/B also only applies to consumers if its full text has been provided.

Would you like quotes directly from prequalified Berlin construction companies? Use our referral service for vetted specialist companies. Further reading: General contractors in Berlin and Reviewing a construction quote.

Sources

1. Verein für die Präqualifikation von Bauunternehmen e.V., prequalification bodies (5 nationwide, one in Berlin)
2. Verein für die Präqualifikation von Bauunternehmen e.V., prequalification under VOB (suitability assessment independent of specific contracts)
3. BGH, judgment of 07.04.2016, VII ZR 56/15: 10 % performance guarantee permissible in standard terms (commentary by Kümmerlein Rechtsanwälte)
4. IWW, security agreements: performance guarantee invalid if it also secures defect claims (§ 307 BGB)
5. Federal Statistical Office (Destatis), press release 085/2026: corporate insolvencies 2025 — construction among the sectors with the highest insolvency rates
6. § 13(4) VOB/B (4 years' defect liability for buildings) compared with § 634a BGB (5 years)