Default (delay in performance)
The failure to render a performance due on time; in case of construction delay the client has specific remedies depending on the situation (sections 918 et seq. ABGB).
Default exists where a performance is not rendered at the agreed time. In case of construction delay the client may, under section 918 ABGB, set a reasonable additional period and insist on performance or rescind the contract. If the default is culpable, damages for the delay loss are added.
The parties often secure deadlines additionally by a contractual penalty. The client too can fall into default, for instance with acts of cooperation or payments; the legal consequences then shift accordingly.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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Contractual penalty
An amount agreed in advance that falls due on a breach of contract, for instance on construction delay; reducible by the court (section 1336 ABGB).
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Damages
Fault-based compensation for loss caused by a defect or breach of duty; on construction projects often alongside warranty (sections 1293 et seq., 933a ABGB).
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Contract for work
A contract under which the contractor undertakes to produce a specific result (the works) in return for payment (sections 1165 ff ABGB).
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