The warranty in construction contracts: Know the essential deadlines to consider.

From the small works we often undertake in our homes to large-scale commercial projects, these types of businesses and constructions are subject to special guarantees. These guarantees aim to ensure that the work is properly executed and fit for its intended purposes.

It is, therefore, important to understand what types of guarantees exist in construction works and their main features.

Before proceeding, it is crucial to distinguish between civil works contracts and consumer works contracts. The difference lies in the fact that consumer works contracts occur when one party is a professional and the other is a consumer, meaning the project owner is not acting within the scope of their commercial, industrial, artisanal, or professional activity.

A. Therefore, when it comes to a consumer works contract, the warranty periods are as follows:

1. 10 years for non-conformities related to structural construction elements;
2. 5 years for other non-conformities.

In the event of a non-conformity in the property, the consumer has the right to have it remedied free of charge through repair or replacement, a proportional price reduction, or contract termination.

However, it is important to note that these rights expire—meaning they can no longer be exercised—three years after the communication of the non-conformity, without prejudice to any causes that may suspend the ongoing deadlines.

B. In the case of a general civil works contract, the terms and deadlines are different.

For long-lasting properties, the Civil Code establishes a 5-year warranty period. During this period, the owner can claim the detection of a defect in the construction.

However, attention must be paid to two additional deadlines:

1. The deadline for reporting defects, which is one year from the moment the defects are discovered; and
2. The deadline for filing a legal action against the contractor, which is one year from the timely reporting of the defects.

Both these deadlines are subject to the overarching 5-year period, after which they can no longer be exercised.

In cases where the property is not intended to be long-lasting, the deadline for reporting defects is 30 days from their discovery.

Regarding the warranty periods within which the report must always be made, they are as follows:

1. When the acceptance of the work is refused or accepted with reservations – one year from that date;
2. When the work is accepted, and the defects were unknown at the time of acceptance – the deadline is counted from the reporting of the defects, with a maximum limit of two years after the delivery of the work.

"It is crucial, whether as a contractor or project owner, to safeguard your responsibilities and rights, always recommending the contract be put in writing."

As for possible remedies, the first step is usually the repair/elimination of defects, which is preferred; in the second step, if repair is not possible, the right to rebuild arises. If neither option is feasible, meaning the defects are not eliminated or the work is not rebuilt, a price reduction or contract termination can be requested. Lastly, in either case, compensation for losses incurred can also be claimed under general terms.

It is further advised that, in either type of works contract, the project owner should inspect the work before accepting it. If any faults or defects are detected, they should be documented (e.g., with photos) and reported immediately to the contractor. This step is crucial, particularly in civil works contracts, because failure to inspect or communicate in these cases implies acceptance of the work.

In summary, it is crucial, whether as a contractor or project owner, to safeguard your responsibilities and rights, always recommending the contract be put in writing.