The questions below offer a general framework on proof of handover in a construction contract, incomplete and defective work, and delay in construction in return for a land share. In a specific case, time limits, documents and the regulations in force are assessed separately.
Showing 1–6 of 6 questions
How is it proven that handover has taken place in a construction contract?
Whether handover has taken place is determined on the basis of the acceptance criteria of the contract and objective, verifiable records.
In construction work, actual use, the giving of keys or photographs alone are not always proof of a handover in accordance with the contract. The project, the technical specification, whether an occupancy permit is required, the provisions on provisional/final acceptance, the handover record and unremedied deficiencies are examined together. The burden of proof on the party asserting on what date and within what scope the handover took place is determined according to the rules of procedure. The fact that progress payments and the final payment have been made may also not, by itself, show that all deficiencies or defects have been accepted.
Which rights may be considered in the face of incomplete or defective work?
Incomplete work and defective work are different; the right to claim is determined according to the contract, the nature of the defect and the notification conditions.
Incomplete work refers to the agreed performance not having been completed; defective work refers to the work performed not conforming to the contract or to the expected qualities. The conditions of the project owner’s rights, such as rescission, price reduction, repair and compensation for loss, may differ. Apparent and latent defects, the obligations of inspection and notification, and the statute of limitations must also be examined separately. Site inspection, photographs, technical reports, progress payments and acceptance records are the basic documents of the examination.
How is delay handled in a construction contract in return for a land share?
In a delay, the start and end dates, additional periods, the obligations imposed on the parties and the contractual penalty must be calculated separately.
In a construction contract in return for a land share, obtaining the permit, site handover, design, commencement of construction and the periods for handing over the independent units may be separate obligations. A delay attributable to the contractor is distinguished from a delay arising from an administrative obstacle or from the landowner. The conditions under which claims for delay compensation, contractual penalty, loss of rent, use of securities, termination and transfer of title deeds may be asserted together must be examined according to the contract provisions.
Is a construction considered delivered without an occupancy permit?
The same result does not arise in every contract; the handover conditions and the suitability of the work for its intended use are assessed.
Whether the occupancy permit was made a condition of handover in the contract, actual use, incomplete works and administrative obstacles are examined together. The giving of the key alone may not show that all contractual performances have been completed.
Is it necessary to send a formal notice to the contractor in defective construction?
Depending on the type of defect and on the Code of Obligations and the contract provisions, the obligations of inspection and notification are important.
The discovery of the apparent or latent defect, the timing of the notification, photographs, expert examination and remediation attempts should be documented. Claims of gross fault and concealment may affect the statutory periods.
When a construction contract is terminated, do the land title deeds automatically revert?
No; the effect of termination or rescission, the type of contract and the title deed transfers already made are examined separately.
In a contract in return for a land share, the official form, the level of the contractor’s performance, the rights of third parties and liquidation claims are decisive. Claims for cancellation of title and registration, and for price or compensation, must be directed at the correct parties.