Contract disputes and construction disputes
Real estate lawyers with decades of experience
With decades of experience, we assist both contract clients and construction companies as well as contractors in legal issues related to contracting.
Our specialist real estate lawyers assist you in all matters relating to contracts, from drafting the contract to any disputes that may arise. Thanks to our extensive experience, we negotiate the best possible solution for our clients as efficiently as possible and minimize the possibility of additional damage. Often, a solution is found through mutual agreement. If necessary, our extensive litigation experience will be at your service in general courts and arbitration tribunals.
We assist in contract and construction disputes between companies and between companies and consumers. Disputes often involve contractual disputes between the contractor, the client, the supervisor, or the financier.
Contact us if you need legal expertise related to contracting
We will first assess the situation with you and present recommended follow-up measures. It is advisable to contact us as early as possible, as timely action can prevent potential loss of rights and possibly also a long, burdensome and expensive legal process.
Contract and construction disputes are often covered by legal expenses insurance. We will verify the coverage of your insurance for you at an early stage and, if necessary, submit the necessary applications to the insurance company. Contact us and we will assess your situation.
Liability for construction defects
Construction disputes often arise in situations where the client considers that the fulfilment of the contract does not meet expectations or what has been agreed. This may involve, for example, breaches of contract, such as delays in the execution of the contract, or construction-related issues, such as errors in the technical implementation of the contract. There may also be disagreements relating to warranties or the rectification of defects.
Contract disputes and construction disputes often arise from disagreements about what has been agreed upon. The parties to the contract interpret the contract differently. Therefore, in order to avoid disputes, it is particularly important to draw up the contract carefully. When contract negotiations and the drafting of the contract, including all stages prior to signing, are carried out in detail and in mutual agreement, there is little room for potential disagreements and, consequently, disputes.
Contractor's liability
If a contract dispute or construction dispute arises, the responsibilities and rights of the various parties must always be carefully clarified. The contractor’s liability for defects comes into question in the event of possible construction defects, for example, when good construction practice has been neglected in the construction. If liability for defects is established, the Consumer Protection Act applies when consumers are acting as clients.
According to the Consumer Protection Act, a contractor’s performance can be considered defective if it does not correspond to what can be considered agreed upon. The contractor’s performance is also defective, for example, when it does not comply with the requirements set out in the regulations or provisions in force at the time of delivery of the contract or with good construction practice.
In addition, it is considered a defect if, for example, the contractor’s performance causes or can reasonably be expected to cause harm to health, or if another task falling within the contractor’s obligations has not been performed professionally and with due care.
When necessary, through us you can also have construction experts assess the defects and the amount of damage
Contractor's liability for delays
The contract is delivered when the work agreed upon in the contract has been completed and any agreed acceptance inspection has been carried out.
If the contract specifies a schedule for the performance of the work, the delay is determined according to the agreed schedule.
If no schedule has been agreed for the contract, the contract must be delivered within a reasonable time after the signing of the contract. A reasonable time is assessed on a case-by-case basis. A reasonable time can be considered to refer to time during which it is possible to complete the contract.
The contract may include a clause on contractual penalties payable in the event of a delay, on the basis of which compensation for the delay may be obtained. The client may be entitled to compensation for damage caused by the delay, such as the cost of renting alternative accommodation.
Under the Consumer Protection Act, if the delivery of the contract is delayed, the client is entitled to standard compensation. The amount of compensation is 0.5% of the corresponding part of the price for each week of delay during the first month of delay and 1% of the corresponding part of the price for each week of delay thereafter. The maximum amount of standard compensation is 10%.
The client is also entitled to compensation for damage suffered as a result of the contractor’s delay. The right to compensation for damage applies in cases where the contractor cannot prove that the delay was caused by an obstacle beyond his control, which he could not reasonably have been expected to take into account at the time of entering into the contract and the consequences of which he could not reasonably have avoided.
The builder's liability period
Compensation for damages may be claimed within ten years of the breach of contract or the event that led to the damage. The builder is therefore liable for a new or renovated building for 10 years. In legal practice, the limitation period is considered to begin from the assignment of possession. For example, in the sale of a prefabricated house, the builder of a detached house is liable for 10 years from the assignment of possession.
Termination of contract
As a rule, the client has the right to terminate the contract if the contractor fails to fulfil their contractual obligations despite being given notice. In the event of termination, the client is generally only obliged to pay for work already performed. The client is entitled to compensation for damage caused by the termination.
Complaints
It is particularly important for the client to remember one’s obligation to file a complaint. If the client discovers a defect or defects in the contractor’s performance, one must file a complaint to the contractor within a reasonable time after the defect was discovered or should have been discovered. Complaints should preferably be filed in writing.
Common disputes between businesses and consumers
Disputes between consumers and contractors often concern home renovations, such as bathroom renovations, roof renovations, drainage renovations, or other major repairs.
Disputes between businesses
Disputes between companies often concern defects in the contract chain or invoicing. For example, disputes related to subcontracting, contract interpretation, or unpaid invoices are common.