Defects in a Contract for Work
In practice, construction companies most frequently encounter contracts for work. However, a contract for work is not only intended for the execution of a work—construction, for example—but also for installation, demolition work, interior fit-outs and other activities.
If you are the contractor (the person performing the work), you must bear in mind not only the deadlines for handing over the work and its proper performance, but also the provisions governing liability for defects, warranties and, most importantly, the grounds for withdrawing from the contract in the event of defects in the work.
They are divided into defects:
(i) that result in a material breach of the contract for work, and
(ii) that result in a non-material breach of the contract for work.
In the event of a material breach, the client may withdraw from the contract when they discover the defect (they assert claims arising from the defects, one option being withdrawal from the contract); in the event of a non-material breach, the client must first call upon the contractor to fulfill the obligation and set a period for its fulfillment (removal of the defect). Only subsequently, once the period has expired without result, may they proceed to withdraw from the contract. However, they must inform the contractor of their intention to withdraw already when asserting the procedure for remedying the defects and setting the period for their removal.
▪️What other options do the parties to the contract have when asserting claims arising from defects, what are the precise procedures for setting a period for remedying defects, and what requirements must a contract for work contain—all this and more can be professionally advised on:
skypalova@skylex.sk
