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Emergency

Cost estimate exceeded: how binding is it?

A cost estimate is initially a non-binding estimate, but not arbitrarily exceedable. If it is substantially exceeded, the contractor must warn you in time so that you can decide. If they fail to do so, you can often reject the unannounced additional costs.

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Your chances of getting your money back

A cost estimate is as a rule non-binding, but for a substantial overrun the contractor must point it out to you without delay (§ 650 BGB). Then you can terminate the contract or decide on continuation.
If the company did not announce the substantial overrun in time, you can often reject the unannounced additional costs. A cost estimate designated as 'binding' or a 'fixed price' binds anyway.

What you should do now

  1. 1

    1. Clarify the type of estimate

    Was it a non-binding estimate, a binding cost estimate or a fixed price? That determines your rights.

  2. 2

    2. Check the overrun

    How far is the bill above the estimate? A substantial overrun triggers the duty to inform.

  3. 3

    3. Check the warning

    Were you informed in time about the additional costs? If not, the unannounced additional costs are attackable.

  4. 4

    4. Dispute

    Dispute unannounced substantial additional costs in writing and pay the justified part.

How to spot the scam

  • The bill is significantly above the estimate without you having been warned.
  • A 'binding' estimate is simply exceeded.
  • Additional costs are only disclosed with the final invoice.

Frequently asked questions

Is a cost estimate binding?

As a rule it is a non-binding estimate. For a substantial overrun, however, the contractor must warn you without delay (§ 650 BGB). A cost estimate expressly designated as 'binding' or as a fixed price, by contrast, binds from the outset.

How much overrun is permissible?

Small deviations have to be accepted. For a substantial overrun, often a range around 15-20 % is roughly cited, the duty to inform applies. The company must then inform you in time so that you can decide on continuation.

What if I was not warned?

If the contractor did not announce the substantial overrun in time, you can often reject the unannounced additional costs. Dispute them in writing and pay the justified part contemplated in the estimate.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.