Construction law issues

Construction law issues

Multiple parties are often involved in the construction process. Examples include the contractor, the designer, and the client. Separate contracts must be concluded for the various parties. Industry-specific general terms and conditions are often declared applicable (DNR 2011, UAV 2012, UAV-GC 2005). Should a dispute arise during the execution of the work, we can provide an organization with legal advice. We assist clients in the event that legal proceedings need to be initiated. This can take place in the court, but in some cases also before the Council of Arbitration for Construction Disputes or another dispute resolution committee.

Questions regarding construction law issues? Contact us.

Common construction law issues

In practice, we see the same disputes recurring time and again between client, contractor, subcontractor, and consultant. The most common construction law issues are:

• Additional and reduced work – discussion regarding the costs of extra or cancelled work. You can read more about this on our Additional and reduced work.
• Late delivery – delay in construction, with a possible entitlement to a penalty or compensation.
• Defective construction and hidden defects – work that does not conform to the agreement. See also Liabilities for defective construction.
• Unpaid invoices and right of retention – disputes regarding payment, in which the contractor may invoke his right of retention .
• Interpretation of the contract – disagreement about exactly what the parties agreed upon, often recorded in a purchase and construction agreement.

Whether you are an international construction group or the contractor around the corner: our mixed teams of lawyers and in-house counsel know the playing field and think along with you, both legally and practically.

The legal framework: contracts for work

Most construction law issues revolve around the contract for the performance of work, regulated in Title 7.12 of the Dutch Civil Code (Articles 7:750 et seq.). A few provisions that repeatedly recur in disputes:

• Article 7:754 of the Dutch Civil Code – the contractor’s duty to warn regarding inaccuracies in the contract or errors in items originating from the client.
• Article 7:758 of the Dutch Civil Code – the completion of the work and the moment at which the contractor's liability passes; after acceptance, the contractor is in principle no longer liable, except for hidden defects.
• Article 7:759 of the Dutch Civil Code – the remedy of defects that become apparent within the liability period.
• Article 7:765 of the Dutch Civil Code – the contractor's right of retention as security for payment.

In addition, industry-specific general terms and conditions almost always apply, such as the UAV 2012, the UAV-GC 2005, or the DNR 2011 for consultants and architects. These conditions supplement the law and sometimes deviate from it, for example regarding the time limit within which you can claim for hidden defects. It is therefore of great importance to first clearly establish which conditions apply in the event of a dispute.

Litigating before the court or the Arbitration Board

A frequently asked question is where a construction dispute should actually be fought out. That depends on the contract. If the general terms and conditions (such as the UAV 2012 or UAV-GC 2005) contain an arbitration clause, the ordinary court usually has jurisdiction, rather than the Council of Arbitration for Construction Disputes. This specialized body adjudicates disputes with arbitrators who know construction practice inside out. If an arbitration clause is absent, the civil court has jurisdiction. We assess for you which route applies, whether an appeal to the arbitration clause holds up, and which course of action is strategically the wisest – after all, sometimes a fast-track procedure or mediation is more effective than a full trial on the merits.

Our approach to construction law issues

We handle construction law issues across the full spectrum of the business landscape, from international corporations to the baker on the corner. Our mixed teams of lawyers and in-house counsel work in fixed steps:

1. File analysis – we review the contract, the general terms and conditions, and the correspondence, and determine your legal position.
2. Strategy – we advise on the opportunities, the risks, and the most suitable route: negotiation, formal notice of default, court, or Arbitration Board.
3. Action – we handle correspondence, negotiations, or proceedings on your behalf and monitor deadlines.
4. Solution – we aim for an outcome that best serves your construction project and your business.

More about construction law

Construction law issues form part of our broader expertise in the field of construction law. On that page, you will also find our other topics, such as purchase and construction contracts, additional and reduced work, liabilities for defective construction , and the right of retention.

Frequently asked questions about construction law issues

When is the best time to seek legal assistance in a construction dispute?
Ideally, as soon as you notice a dispute developing. By seeking advice in a timely manner, you avoid missing deadlines or making rulings that weaken your position.

Do I need to go to court or the Arbitration Board?
That depends on your contract. If there is an arbitration clause in the general terms and conditions, the Arbitration Board for Construction Disputes is usually competent; otherwise, the civil court. We will look into this for you.

Can I still hold the contractor liable after completion?
For hidden defects, this is often still possible, based on Article 7:758 of the Dutch Civil Code and the applicable general terms and conditions. The precise time limit varies depending on the situation; therefore, a timely assessment is important.

Questions about a specific construction law issue? Feel free to contact us – we provide advice and support to both large clients and small business owners.