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[BUSINESS] · Germany · 3 sources

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Germany proposes ‘Building Type E’ to reduce construction costs

The German federal government has introduced a legislative draft for ‘Building Type E’ to simplify construction and curb rising costs. Proposed jointly by Federal Justice Minister Stefanie Hubig and Federal Construction Minister Verena Hubertz, the initiative aims to allow builders and companies to legally bypass certain expensive comfort standards and bureaucratic requirements.

Under the new proposal, if all contracting parties agree, construction can proceed using simpler and more cost-effective methods. This may include features such as fewer electrical outlets, thinner concrete ceilings, and unheated stairwells. The government argues that reducing reliance on strict DIN norms and the legal concept of ‘recognized rules of technology’ will help create more affordable housing.

However, associations from the construction and housing industries have expressed criticism, warning of legal risks for both tenants and builders. While the government seeks to eliminate ‘unnecessary extras,’ industry experts note that approximately one-fifth of construction cost increases are attributed to new or tightened standards.

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German Federal Government · Germany · Stefanie Hubig · Verena Hubertz

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