Question
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Contract for Work or Service Contract – Which Fits?
Short answer
A contract for work guarantees a result and ends with acceptance – suitable for clearly defined scope. A service contract guarantees the activity, not the outcome – suitable for ongoing development and operation. In practice, both are often used: contract for work for construction, service contract for operation.
Contract for Work
A result is guaranteed. The contractor bears the risk that it works. There is an acceptance, from which warranty periods begin.
Suitable for: clearly defined scope, fixed deliverable.
Disadvantage: Any change is a contract modification. This slows things down.
Service Contract
The activity in agreed quality is guaranteed, not a specific outcome. Billing is based on effort.
Suitable for: ongoing development, operation, consulting, unclear direction.
Disadvantage: You bear the outcome risk and need ongoing management.
The Combination in Practice
- Contract for Work for concept and first expansion stage – with acceptance
- Service Contract for further development and operation thereafter
This way, the risky part is secured with a results-oriented approach, while the ongoing part remains flexible.
What Belongs in Every Contract
- Usage rights to the source code
- Handling of third-party libraries and their licenses
- Acceptance criteria and defect classification
- Order processing according to Art. 28 GDPR, if personal data is processed
- What is to be handed over upon termination
This text does not replace legal advice.
Key facts
- Contract for Work
- Result guaranteed, with acceptance
- Service Contract
- Activity guaranteed, based on effort
- In Practice
- Contract for work for construction, service contract for operation
Sources
All external claims are backed by traceable sources.-
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Datenschutz-Grundverordnung (Verordnung (EU) 2016/679) Amt für Veröffentlichungen der EU