Site risk

Site Risk - Site risk refers to the danger that the building site of a property may have unforeseen characteristics that increase construction costs, cause delays, or, in extreme cases, make construction impossible. These include, among other things, insufficient bearing capacity, contaminated sites, high groundwater levels, bedrock, or contaminated soil. According to established case law, the building owner generally bears the site risk.

Typical Site Problems

The most common site risks in practice are diverse and can occur individually or in combination:

Soft or non-load-bearing soil (peat, fill material, alluvial sand) requires extensive foundation measures such as pile foundations or soil improvement. Depending on the scope of work, the additional costs can range from 20,000 to 80,000 euros. Particularly problematic are historical fill deposits on former landfills or construction debris sites, which settle unevenly.

High groundwater levels necessitate a watertight basement construction (white tank) or the complete elimination of the basement. A white tank costs an additional 15,000-40,000 euros compared to a standard basement construction. Additionally, rising groundwater can permanently affect the structural integrity and usability of the basement.

Contaminated sites such as those with heavy metals, mineral oils, chlorinated hydrocarbons, or chemical residues from previous industrial or commercial use trigger expensive soil remediation. Depending on the extent and type of contaminant, remediation costs can reach five- to seven-figure sums. Authorities are obligated to compel the owner to undertake remediation measures-even if they did not cause the contamination.

Rock or boulders significantly increase the cost of excavation, as blasting or special machinery must be used. Costs of 10,000-30,000 euros for rock excavation at a single-family home are not uncommon.

Unexploded ordnance: In many German cities-including Nuremberg-there are still risks posed by unexploded ordnance from World War II. Before any excavation work, information should be obtained from the responsible Bavarian Explosive Ordnance Disposal Service (KBD).

Cost overview of typical building site problems

Problem	Measure	Estimated additional costs
Soft soil / insufficient bearing capacity	Pile foundation or soil replacement	€20,000-80,000
High water table	Waterproof basement	€15,000-40,000
Contaminated sites (moderate)	Soil excavation and disposal	€30,000-150,000
Contaminated sites (severe)	Large-scale soil remediation	€100,000-500,000
Bedrock	Rock blasting, specialized machinery	€10,000-30,000
Unexploded ordnance	Excavation, defusing, evacuation	€5,000-50,000

Site Investigation Report as a Safety Net

A geotechnical report (site investigation report) prepared by a geotechnical expert is the most important measure for minimizing risk. This involves taking core samples and analyzing the soil layers, bearing capacity, groundwater conditions, and any potential contamination. The cost of a standard report ranges from €1,500 to €3,500-a fraction of the additional costs that can arise from undetected soil issues.

The report provides the architect and structural engineer with the basis for foundation planning and minimizes the risk of costly cost overruns. Banks often require the report as a prerequisite for financing approval. We recommend always commissioning the report before purchasing the property or at least including it as a condition precedent in the purchase agreement.

Legal Classification

According to the case law of the Federal Court of Justice, the risk associated with the building site is assigned to the client (building owner)-the contractor is generally not obligated to conduct a building site investigation. If it only becomes apparent during construction that the soil has unforeseen properties, the contractor is entitled to claim the additional costs as a cost-plus item pursuant to Section 2(8) VOB/B or Section 313 BGB (falling away of the basis of the transaction).

Only if the contractor fails to disclose identifiable site conditions issues prior to contract conclusion, or if the developer’s building specifications contain incorrect information regarding the site conditions, may the building owner assert claims for recourse.

Practical Tip for Building Owners in Nuremberg

In the Nuremberg metropolitan region, soil conditions vary greatly from one area to another. In the Pegnitz Valley and along the Rednitz River, high groundwater levels are to be expected; in parts of Fürth and Nuremberg-South, there are former industrial sites suspected of containing contaminated soil, and in the Nuremberg countryside, one encounters sandy Keuper soils with varying load-bearing capacity. In Nuremberg’s Old Town and Gostenhof, preliminary surveys for unexploded ordnance should always be planned-the Bavarian State Criminal Police Office (BLKA) offers preliminary information on this.

We recommend that every builder have a building site survey conducted before purchasing the property-ideally as a condition precedent in the purchase contract. At the same time, the contaminated sites registry should be consulted at the City of Nuremberg’s Environmental Office or the relevant district office. Also, obtain information on unexploded ordnance before commissioning any earthwork.

Frequently Asked Questions

Who bears the costs in the event of unforeseen soil problems?

Generally, the building owner - according to Federal Court of Justice (BGH) case law, the building site risk is the client’s responsibility, not the contractor’s. The contractor is entitled to reimbursement of additional costs as a cost-plus arrangement if the actual soil conditions deviate significantly from what was assumed at the time the contract was concluded. In property development contracts, the building site risk is usually factored into the fixed price-check the relevant clause carefully, as many developers include cost reservations for exceptional soil conditions in the fine print. Negotiating a total flat-rate price “including building site risk” protects you from unpleasant surprises.

Is a site survey mandatory?

There is no legal obligation, but many banks require a site survey as a prerequisite for financing. Architects and structural engineers also need the results for foundation planning-without a survey, they must plan with significantly higher safety margins, which also increases costs. In practice, a survey is therefore virtually indispensable. Anyone who builds without a report risks unpleasant surprises during construction and bears the full financial risk. The costs of 1,500-3,500 euros are generally more than offset by the planning certainty and the avoidance of cost overruns.

Can I insure against the building site risk?

There is no standard insurance policy against building site risks. However, some developers and general contractors offer fixed-price guarantees that include the building site risk-in this case, the risk is factored into the flat rate, which comes with a corresponding surcharge. Construction performance insurance covers weather damage and unknown building site events to a limited extent, but is no substitute for a building site survey. We recommend carefully reviewing the contractual provisions regarding building site risks before signing a construction contract and, if in doubt, consulting a specialist attorney for construction law.

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