Baurecht
DE EN BKS
Menü
Focus area · Construction law

Construction defects & warranty.

When a defect appears, remedies and deadlines decide your claims. We assess which route holds and enforce it, from the first request for repair to construction litigation.

BRANDAUER Rechtsanwälte
Your law firm

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.

Call directly +43 662 6280000 WhatsApp Send email Book initial consultation (72 euros)

A defect in a structure means the work does not have the agreed or the ordinarily expected qualities. The ABGB provides building owners, purchasers and businesses with a tiered set of tools: the warranty under sections 922 to 933 ABGB restores the contract-compliant work, while damages under section 933a ABGB cover consequential losses beyond it.

Success usually turns on timing. The warranty for a building becomes time-barred three years after handover; during the first six months a presumption works in your favour; and in business transactions section 377 UGB requires prompt notice of defects. Knowing the deadlines and cleanly separating your claims secures the full range of remedies.

This page orders the remedies, their sequence and their deadlines. The guide below helps you assess your situation in time, but does not replace an examination of the individual case.

Assess your deadline

Where do you stand on the warranty deadlines?

Answer one or two questions about handover and your role. You will receive a first, non-binding assessment of your situation in time.

Already know you want to get in touch? Go straight to the enquiry form.

01 Question 1

How long ago was the structure handed over?

The warranty period for a building is three years from handover (section 933 ABGB). During the first six months an additional presumption works in your favour (section 924 ABGB).

All paths at a glance

Overview of all answers.

01

During the first six months the burden of proof works for you. Secure the defect now.

If the defect appears within six months of handover, section 924 ABGB presumes it already existed at handover. The contractor would have to prove otherwise. You can demand repair regardless of fault; only if repair fails do price reduction or rescission come into play.

Document the defect with photos and dates and request repair in writing. The exact start of the period can be disputed in an individual case, so an early legal assessment is worthwhile.

02

The three-year warranty period is still running. Demand repair first.

As a consumer you are not subject to the duty to give notice under section 377 UGB. While the three-year period under section 933 ABGB runs, you can demand repair or replacement regardless of fault. Only if repair is impossible, disproportionate, refused or unsuccessful do price reduction or rescission replace it (section 932 ABGB).

You should still report the defect promptly, because an obvious defect accepted without reservation may be deemed approved. The start of the period is often disputed, so a legal assessment provides clarity.

03

In a business transaction the duty to give notice under section 377 UGB counts. Act quickly.

In a transaction between two businesses you must give notice of the defect within a reasonable period under section 377 UGB; otherwise the work is deemed approved and warranty and damages claims may be lost. In addition, the three-year warranty period under section 933 ABGB runs from handover.

Missed notices can hardly be repaired. Have it checked early whether the notice was timely and sufficient in content, and secure the defect in parallel.

04

Once the warranty period has expired, damages move to the foreground.

After the three-year period under section 933 ABGB expires, a warranty claim is generally excluded. A fault-based damages claim under section 933a ABGB may nonetheless exist: under section 1489 ABGB it only becomes time-barred three years after knowledge of the loss and the party causing it, and absolutely after thirty years. Particularly for long-hidden defects this route gains importance.

Have it checked whether the warranty period has actually expired, as its start is often disputed, and whether a damages claim applies.

The remedies at a glance

Repair, price reduction, rescission and damages

The ABGB arranges the warranty remedies in tiers. Repair or replacement come first, only then price reduction or rescission. Damages apply in addition where there is fault.

Warranty remedies and damages for construction defects under the ABGB
Remedy When it applies Effect
Primary Repair or replacement First, as long as possible and reasonable The defect is remedied, the work becomes contract-compliant
Secondary Price reduction If repair fails or is refused The remuneration is reduced in proportion to the loss of value
Secondary Rescission Only for a defect that is not merely minor The contract is reversed, performances are returned
In addition Damages (section 933a ABGB) Where the contractor is at fault Consequential losses to other property are compensated as well

The sequence under section 932 ABGB must generally be observed: rescission as a reversal of the entire contract is only permissible for a defect that is not merely minor. The table offers an overview and does not replace an examination of the individual case.

When a structure has a defect

A defect exists under section 922 ABGB if the work does not have the agreed or the ordinarily expected qualities. The decisive moment is the state at handover: the defect must at least have been latent at that point. Later wear and tear or improper use do not give rise to a warranty claim.

The warranty is independent of fault. You do not have to prove any misconduct by the contractor; it is enough that the structure is objectively defective. This distinguishes the warranty from damages, which require fault but also cover consequential losses.

Notice of defects secures your claims

An obvious defect that you recognise at acceptance and accept without reservation may be deemed approved. Therefore record defects in the handover protocol and give provable notice of them. Hidden defects that only appear later are not affected by this.

In a transaction between two businesses section 377 UGB sharpens the position: defects must be reported within a reasonable period, otherwise warranty and damages claims are deemed lost. Consumers are not subject to this duty to give notice but should still report the defect promptly. What an effective notice looks like is explained in the linked article.

Three years, six months, thirty years

The warranty for a building becomes time-barred under section 933 ABGB three years after handover. Within this period you must enforce your claims in court if necessary, should the contractor not repair voluntarily. The decisive moment is handover, not the moment a defect becomes visible.

During the first six months after handover the presumption under section 924 ABGB helps: if a defect appears in this period, it is presumed to have already existed at handover. This reversal of the burden of proof relieves you regardless of the chosen remedy.

Damages under section 933a ABGB follow their own rules. Under section 1489 ABGB they become time-barred three years after knowledge of the loss and the party causing it, and absolutely only after thirty years. Particularly for long-hidden defects this route may still be open once the warranty period has expired.

This page offers a general overview of the Austrian legal position and does not replace advice in an individual case. The start, suspension and interruption of deadlines are often disputed in an individual case.

Frequent questions

Construction defects and warranty.

How long do I have for the warranty on a building? +

For a building the warranty period under section 933 ABGB is three years from handover. Within this period you must enforce your claims in court if necessary. The start of the period, that is the exact moment of handover, is often disputed in an individual case and should be documented early.

Must I first demand repair or can I reduce the price straight away? +

In principle the sequence of section 932 ABGB applies: repair or replacement come first. Only if these are impossible, disproportionate, refused or unsuccessful do price reduction or rescission come into play. Rescission as a reversal of the entire contract additionally requires that the defect is not merely minor.

My defect only appeared after three years, is everything lost? +

Not necessarily. The three-year warranty period is likely to have expired. A damages claim under section 933a ABGB, however, follows section 1489 ABGB and becomes time-barred three years after knowledge of the loss and the party causing it, and absolutely only after thirty years. Particularly for long-hidden defects this route may still be open.

What is the difference between warranty and damages? +

The warranty restores the contract-compliant work regardless of fault. Damages under section 933a ABGB require fault on the contractor's part, but reach further and also cover consequential losses to other property, for example furniture soaked by a leaking roof. Both claims can exist alongside each other.

In depth

Articles on this focus area

Construction defects after handover

Which deadlines under section 933 ABGB run from handover, who must prove what and which claims exist.

Warranty or damages

The two routes compared: the fault-independent claim and compensation for consequential losses under section 933a ABGB.

Notice of defects and deadlines

Form, content and deadlines of the notice of defects for consumers and businesses under the ABGB and section 377 UGB.
Related topics

This might also affect you.

Construction damages and liability

Liability of planners, contractors and site supervision. Damage, fault, contributory fault and the line between damages and warranty.

Handover and notice of defects

Acceptance of the works, the handover protocol, timely notice of defects and dealing with hidden defects.

Construction litigation and evidence preservation

Secure evidence before it is built over: judicial preservation of evidence, court experts and the preparation of construction litigation.
Risk check

Construction project risk analysis

Role-based risk axes, one radar chart: see the overall level, top-3 risks and next steps for your project.

Start the risk analysis

Found a defect, watching a deadline?

In construction law, deadlines and evidence decide. Call us directly or write to us, with a callback within one business day.

+43 662 6280000 [email protected] Book initial consultation (72 euros)
Contact

A direct line to the firm.

Address

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg