This survey investigates and evaluates the legal framework which an engineer faces when
stepping into an ARGE partnership with other planning offices. ARGE in the German construction
industry an established form of partnership becomes more and more important in acquiring and
accomplishing construction projects. The ARGE underlies the regulations of the German
Partnership under Civil Law consequently the ARGE partners are jointly and individually
liable for the contract. Thus the principal of the overall project enjoys fundamental
advantages: He reduces his risk should it come to an insolvency of an ARGE partner he
increases competition and he gets services out of one hand. Engineering firms who want to
participate in these projects have to handle their capacities and risks. Presently many
engineering firms are not interested in participating in ARGE partnerships as they see no
reason for a voluntary sharing of liability and want to be responsible and liable only for
services they performed. Therefore engineering firms are interested in an ARGE agreement which
divides the responsibilities and liabilities in consideration of the rendered services. In
external discussions with principals ARGE partner could not change the joint and individual
liability. Principals will not deal with the limitation of ARGE partners liabilities. However
other regulations could be defined in internal arrangements. Besides the law-related aspects
it is advisable to redefine other regulations in the ARGE agreement. Partners for example
should define a fulfillment obligation. In case of insolvency of one partner the other
partners still have to fulfill the contract. If there are services which they cannot carry out
by themselves they have to involve other partners.
