immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Baumängel

  • Parliament extends deadline for reporting construction defects

    Parliament extends deadline for reporting construction defects

    The amendment to the law on sales and contracts for work and labour aims to strengthen the legal position of house buyers and builders. The previous practice of reporting construction defects as soon as they were discovered often led to uncertainty and legal disputes. The Federal Council therefore put forward a compromise proposal, which was supported by both chambers, for a sixty-day period for notifying defects in contracts for work and property purchase contracts.

    Debate on notice periods and limitation periods
    The National Council had originally proposed dispensing with the notice periods altogether and instead introducing an extended limitation period of ten years. However, this solution was not accepted by the Council of States. The concern was that a complete abolition of the time limits for lodging complaints would lead to considerable legal uncertainty and practical problems in providing evidence.

    In the end, Parliament agreed to leave the period for lodging complaints at sixty days and not to extend the limitation period of five years. A balanced model that guarantees both legal certainty and protection for building owners.

    Better protection for buyers and builders
    Another key point of the reform is the protection of property buyers and builders from liability clauses that have often been interpreted to their disadvantage in the past. In many contracts, liability for construction defects was passed on to subcontractors, which put private developers in the difficult position of having to enforce their claims directly against the subcontractors. With the new regulation, the right to rectify defects may no longer be contractually excluded in future, which represents a considerable advantage for private construction projects.

    Increased protection in the event of unpaid invoices
    The issue of double payment obligations for building owners is also particularly controversial. If general contractors do not pass on payments to their subcontractors, building owners run the risk of them asserting their builder’s lien. Parliament decided that building owners can now avert the lien by means of a bank guarantee. However, the default interest only has to be covered for a period of ten years – a considerable relief for construction projects.

    The reform of sales and work contract law represents an important step towards greater legal certainty and protection in the construction industry. The extension of the time limits for notifying defects and the strengthening of the position of builders and buyers strike a balance between the interests of the construction industry and the needs of private builders. The bill will now return to the Council of States for final finalisation.

  • Legal need for action in the event of construction defects

    Legal need for action in the event of construction defects

    The current legal situation is proving to be disadvantageous for buyers of new builds and private developers. Problematic contractual clauses that have developed in practice put them at a considerable disadvantage. The existing law assumes two equally strong negotiating partners, which is not the case in reality. Professional contractors and sellers dictate the terms of the contract, while private developers have no negotiating power due to the high demand in the real estate market. This “eat or die” mentality puts them under massive pressure.

    The National Council’s proposals: Abolition of the separatenotice period
    The National Council has created a practicable proposal, the core of which is the abolition of the separate notice period for defects. Currently, buyers and builders have to observe two deadlines: the notice period and the limitation period. The notice period requires a detailed notification of defects to the right person within a short period of time. If this deadline is missed, buyers and builders lose all warranty rights. The limitation period is the second requirement. The abolition of the notice period would solve the main problem that many lose their statutory liability claims because they are unable to give notice of construction defects in good time. HEV Switzerland supported this decision by the National Council.

    The position of the Council of States: Extension of the notice period, but no abolition
    The Council of States recognizes the need for action to improve liability for construction defects, but maintains the notice period, albeit extended to 60 days. However, this extension does not solve the fundamental problem that private buyers and builders lose their rights in the event of defects if they do not comply with the legal requirements of a notice of defects within the deadline.

    No extension of the limitation period
    The Council of States is also adamant about the limitation period. The existing period of five years remains in place and can be shortened further by contract. The National Council had called for this period to be extended to ten years in order to do justice to the buyer’s claims for defects. For homeowners and condominium owners, the onset of the limitation period means that they can no longer enforce their rights in the event of construction defects and must bear the costs themselves. In view of the long service life of many building components, this short limitation period is problematic. HEV Switzerland is disappointed that private lay purchasers and building owners continue to be disadvantaged.

    Referral back to the National Council
    The bill will now be referred back to the National Council. HEV Switzerland remains committed to improving the legal situation of private home and condominium owners in the event of construction defects. The hope remains that further discussions and adjustments will lead to a solution that meets the needs and rights of private builders and property buyers.