materialverzug

Materialverzug is a term used in German contract practice to describe a delay caused by late delivery of material or materials that are essential to perform a contract. It is a specialized form of Verzug (default) in which the supplier or contractor fails to provide the required materials by the agreed time, hindering the timely completion of the project or the fulfillment of the contract.

In general, Verzug arises in German law when a debtor does not perform on time after a due date is fixed or after a contractual date becomes due. Materialverzug focuses on the delivery side: the non-delivery or late delivery of material, components, or equipment that a party needs to proceed with the work. If the creditor has requested performance or a reasonable grace period (Nachfrist) has been set, the party in default may be liable for damages resulting from the delay.

Consequences of materialverzug can include entitlement to damages for the delay, suspension of work, and, in some cases, contract termination or adjustment of the schedule. The exact remedies often depend on the governing contract terms (for example, general terms and conditions or industry-specific rules) and on applicable civil code provisions, notably those governing default and damages. In construction and procurement practice, materialverzug is frequently addressed with project milestones, delivery schedules, and force majeure clauses to allocate risk and provide remedies for delays.

Overall, materialverzug describes the impact of late material delivery on contractual performance, with remedies typically tied to the contract and the statutory framework for default and damages.