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Construction defects and warranty

Identify, notify and enforce defects in the building. Remedy, price reduction, rescission and the warranty periods under Austrian civil law.

A construction defect exists where the building does not have the quality agreed in the contract or the quality ordinarily to be expected. We clarify for you whether a defect is legally relevant, who is liable for it and which claims are open to you.

At the centre is the statutory warranty under the ABGB (Austrian Civil Code). It applies regardless of any fault on the part of your contracting partner and gives you a tiered system of rights. Acting early secures the evidence and preserves the deadlines.

When a construction defect counts in law

What matters is the deviation between the performance owed and the performance actually delivered. What is owed follows from what was agreed, supplemented by the state of the art and the relevant ÖNORM standards. Even work that follows the plans but is not fit for its function can be defective.

  • moisture, rising damp or defective sealing
  • cracks in walls, ceilings or the screed
  • thermal bridges, mould or insufficient insulation
  • deviations from the plan, the building specification or the ÖNORM
  • materials used that do not match the agreement

Your rights under the statutory warranty

The law arranges the remedies in two stages. First you have a right to remedy or replacement. Only where that fails, is unreasonable or is refused do price reduction or, for serious defects, rescission come into consideration.

  • remedy: rectification of the defect by the contracting partner
  • price reduction: reduction of the fee in line with the diminished value
  • rescission: unwinding of the contract for defects that are not minor
  • alongside this, possible damages where the contracting partner is at fault

Deadlines you need to know

For immovable property such as buildings the warranty period is in principle three years from handover. In dealings between businesses there is additionally a duty to give immediate notice of defects under the UGB (Austrian Commercial Code). Even when the period starts can be disputed, so you should document the handover date and the defects early.

How we support you

  • legal classification of the defect and the prospects of success
  • drafting a notice of defects that preserves the deadline and secures the evidence
  • coordination of court-appointed experts and the preservation of evidence
  • out-of-court enforcement or representation in construction litigation

This article provides 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.

Frequently asked questions

What clients often ask.

How do statutory warranty and guarantee differ? +
The statutory warranty is the statutory liability for defects that were already present at handover. It exists regardless of any fault. A guarantee, by contrast, is a voluntary assurance whose scope and duration can be freely shaped. Both can exist alongside one another.
Do I have to give the contractor the chance to remedy first? +
As a rule, yes. The law gives priority to remedy. Anyone who repairs or has repairs carried out without a prior request risks losing claims. There are exceptions, for example where remedy is seriously refused or is unreasonable. You should clarify these in advance with a lawyer.
What is a hidden defect? +
A hidden or concealed defect only shows itself after acceptance, for example a faulty seal that is only noticed in the rain. You are not barred from claiming for such defects by accepting the works. What remains decisive is the warranty period and timely notice once the defect becomes apparent.
Who bears the costs of a court-appointed expert? +
In the judicial preservation of evidence the applicant initially bears the costs, but they can become part of the later award of costs. You pay for a private opinion yourself, although it can be worthwhile as leverage and to assess the prospects of success.
Related topics

This may also be relevant to you.

Construction litigation and evidence preservation

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

Construction contract and remuneration

Works contract, lump-sum and unit prices, additional orders, final invoice and enforcing or defending remuneration claims.

Developer contract and BTVG

Protection of buyers under the Austrian Developer Contract Act: instalment schedule, security models, escrow and unwinding when problems arise.

Defects, a remuneration dispute, looming litigation?

In construction law, deadlines and evidence decide. Call us directly or send an email, callback within one business day.

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

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Address

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg