Guarantee Construction defects

Do general contractors have to stick to their quotes?

Fixed prices agreed in the contract are binding. It is crucial to ensure clear, unambiguous wording and to have a clearly defined project. But beware: elements not originally included in the quote often suddenly appear on the final invoice. This is why you must check carefully exactly what is included in the fixed price, what will be invoiced according to the materials used, and how much it will cost to make changes. If no fixed price is agreed, the accuracy of the cost estimate must be specified.

Who can guarantee that the construction will go according to plan?

The documents in writing are authoritative, i.e. the contract and everything that goes with it – building specifications, plans and standards, etc. The project must then proceed and be built in accordance with these requirements. The desired features should be clearly defined in the contractual documents.

Is an equipment supplier responsible for ensuring that it works properly?

In Switzerland, claims by the customer due to defects in work lapse two or five years after acceptance of the work. The duration is determined by the cause of the defect. However, depending on the basis for the defect, other limitation periods may apply. It is often not the manufacturer who is liable to the customer, but the installer, e.g. the heating engineer. If the installer wants to limit the guarantee or not provide one, it may be wise to look for a different partner.

Does the general contractor have to guarantee that I can move in on time?

The general contractor must ensure that the building is completed in full and on time, and that it meets the desired quality standards. Here too, the wording in the contract is decisive. If a fixed date has been defined, this must be adhered to, but make sure that there are no provisos or ambiguous wording in the small print that could alter the deadline. The phrase “desired handover date” is not clear enough, for example. It can make things difficult if the contractor only announces the handover date three months before completion. Remember that making additional requests can lead to extra costs and delays.

What is regarded as a construction defect?

Construction defects include everything that differs from the contract, or could have been expected under “recognized building practice rules.” Signs of a defect could be water gathering in an underground garage or awnings that have been installed incorrectly.

What should I do in the event of defects?

In Switzerland, claims by the customer due to defects in work lapse two or five years after acceptance of the work. The duration is determined by the cause of the defect. However, depending on the basis for the defect, other limitation periods may apply.

The customer must inspect the work as soon as possible after acceptance (as soon as this is feasible in the ordinary course of business). Defects must then be reported and declared immediately. As a rule, general complaints are not sufficient; each defect must be listed individually. The report and declaration must be properly substantiated and indicate that the customer does not acknowledge the delivery as being in accordance with the contract, and that they hold the contractor liable.

According to the Swiss Code of Obligations, defects that were not recognizable at the time of acceptance – hidden defects – must be reported as soon as they are discovered. However, the usual limitation periods are still applicable.

What are guarantee exclusions in a construction contract?

General contractors often refuse to accept responsibility for defects. Although some exclusions are legal, an exemption from liability based on the alleged approval of intentionally concealed defects is excluded, for instance.

In certain cases, general contractors transfer rights regarding defects by craftsmen to the real-estate buyers or customers. This sounds like an improvement, but could actually be problematic. Assignments may prove to be inadmissible in individual cases, or it may be difficult to determine who can effectively be held accountable. Assignment should therefore be avoided. A general contractor should take responsibility for their own work and for the tradespeople involved. It is vital to obtain references in advance and to seek advice from experts if necessary.

Can the general contractor guarantee low energy consumption?

If you specifically ordered a building that meets Minergie standards or another quality label, the general contractor must deliver this. Energy consumption is not as clear-cut. The contract would have to contain explicit assurances that the energy consumption will meet a certain target value. The guarantee options are limited, however, as energy consumption depends not only on the building, but also on user behavior.

What are the risks associated with modifications or adaptations during a construction project?

Changing specifications is very risky, and can rapidly lead to disputes about the basis for calculations. To avoid any problems, it is best not to start construction work until the planning has been completed and all the costs have been defined. If any subsequent changes are made, a written quote stating the cost implications should always be obtained and recorded in the contract.

How accurate do expert appraisals have to be?

Appraisers are responsible for the accuracy of their valuations. However, there are limits to accountability. If, for example, an expert values real estate on the basis of recognized assumptions, this does not necessarily mean that potential buyers will be guided by this estimate, and changes in the overall situation could still alter the picture.

Overall, a precisely drafted contract is a key factor for a successful construction project. Every aspect should be clearly defined, be it the construction costs, technical installations, construction defects or guarantee exclusions. Special care must be taken if changes are made during a construction project. Inspecting the work carried out is essential, and must be done as soon as possible. Enough time must be allowed for a thorough check. In addition, a critical view should be taken of appraisals, especially estimates of market value. It may be worth obtaining assistance from experts. If everything is in order, there is nothing standing in the way of the construction project from a legal point of view.