Understanding handover and acceptance of construction works: which legal consequences it triggers, why the handover protocol matters and when to accept only with reservation.
BRANDAUER Rechtsanwälte
Salzburg law firm for real estate, construction and corporate law
Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In construction cases we look at contract, evidence, deadlines and commercial consequences together.
At the end of a construction project stands the handover of the finished works. Many clients underestimate that handover is far more than a formal end point. It is a legal act that triggers several important legal consequences and considerably changes your position.
With handover, the risk for the works passes to the customer, the remuneration falls due and the warranty period begins to run. Anyone who accepts the works without reservation although defects are apparent can worsen their position. Conversely, acceptance with reservation secures the customer’s rights.
This article explains which legal consequences handover triggers, why a handover protocol is so important and what you should pay attention to with the formal acceptance. From a lawyer’s perspective, handover is one of the most delicate moments in the construction process.
Answer one or two questions about your situation and apparent defects. You will receive an initial classification.
Already know you want to get in touch? Go straight to the enquiry form.
Handover is a legal act with significant consequences. What is decisive is whether you are still accepting or have already accepted.
If you can see defects or outstanding remaining work at handover, you should record them in the handover protocol and declare the acceptance only with reservation. That preserves your rights to repair and avoids an acceptance without reservation being held against you. Demand the repair while setting a deadline.
Have a precise handover protocol drawn up describing all defects found. That is an important piece of evidence later.
If the works appear free of defects, you may accept them. Even then a handover protocol is sensible, recording the condition at handover. With acceptance, the risk passes to you, the remuneration falls due and the warranty period begins to run. For construction works it is three years under section 933 of the Austrian Civil Code (ABGB).
Hidden defects that you could not detect at handover can still be asserted later. Report such defects immediately after their discovery.
If you have accepted the works without reservation, apparent defects that you did not raise can be held against you to your disadvantage. For hidden defects that were not apparent at handover, however, the warranty rights remain. The warranty period runs from acceptance.
Check which defects were apparent at handover and which were hidden. This distinction determines your claims. A legal assessment creates clarity.
Handover is the acceptance of the finished works by the customer. With it, the risk for the works passes to the customer. If the works are accidentally destroyed after handover, for example by an event through no one’s fault, the customer generally bears that. Up to handover the risk lies with the contractor.
With handover, the remuneration also falls due. Under section 1170 ABGB, the remuneration is generally to be paid after completion of the works. Handover marks the point from which the contractor can demand payment, insofar as the works were performed in accordance with the contract.
Finally, with handover the warranty period begins to run. For construction works it is three years under section 933 ABGB. Within this period you can assert warranty claims for defects that already existed at handover but were not necessarily apparent.
If you can see defects at handover, you should accept the works only with reservation. Record the defects in the handover protocol and expressly reserve the rights to repair. This avoids it later being held against you that you accepted the works without reservation despite apparent defects.
The handover protocol is the central document of the handover. It describes the condition of the works, records defects found and outstanding remaining work and documents the time of handover. In a later dispute it is an important piece of evidence about the condition at handover.
Even if the works appear free of defects, a protocol is sensible. It creates clarity about the accepted condition and the start of the warranty period. Allow yourself sufficient time for drawing up and signing it and check the works carefully.
How the legal position changes through handover.
| Point | Before handover | From handover |
|---|---|---|
| Risk Risk lies with the contractor | Risk passes to the customer | The time of handover is decisive |
| Remuneration Not yet due | Due after completion (section 1170 ABGB) | For performance in accordance with the contract |
| Warranty Period not yet running | Period begins, three years (section 933 ABGB) | For construction works |
The overview shows the essential consequences. It does not replace a review of the individual case.
If you have accepted the works without reservation although defects were apparent, this can make enforcement harder for you. For hidden defects that were not apparent at handover, however, the warranty rights remain. The distinction between apparent and hidden defects is therefore decisive.
If a hidden defect only shows after handover, you should report it immediately after discovery and safeguard your rights. How to give a notice of defects correctly is explained in the article on notice of defects and deadlines. Which rights you have after handover is explained in the article on construction defects after handover.
The wider context of warranty and damages is covered in the article on warranty and damages. An overview is offered by our focus page on handover and notice of defects.
Practical tip: Never accept construction works under time pressure. Check the works carefully, record apparent defects in the protocol and, where there are defects, accept only with reservation. With uncertainty about the consequences of handover, a review is worthwhile. Booking an initial consultation (72 euros) clarifies your position.
With handover, the risk for the works passes to the customer, the remuneration falls due under section 1170 ABGB and the warranty period begins to run. For construction works it is three years under section 933 ABGB. Handover is therefore a legal act with significant consequences, not a mere formality.
Yes. If you can see defects at handover, you should record them in the handover protocol and declare the acceptance only with reservation. That secures your rights to repair and avoids an acceptance without reservation being held against you.
Yes. For hidden defects that were not apparent at handover, the warranty rights remain, even if you accepted without reservation. Report such a defect immediately after its discovery. The warranty period, which runs from handover, is decisive.
The focus page on the handover of the construction works and the correct notice of defects.
How to give notice of defects correctly and which deadlines you have to observe.
Which rights you have when defects in the construction works appear after handover.
The difference between warranty and damages for construction defects and how the two complement each other.
In construction law, deadlines and evidence decide. Call us directly or send an email, callback within one business day.
Address
BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
Phone
+43 662 6280000