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The contractor is generally responsible for handing over defect free work to the employer and must rectify any defects caused by non-contractual performance. However, sometimes only ‘visual defects’ occur during the construction of buildings, such as cracks, scratches, unevenness, dirt or deviations that are largely inconspicuous when viewed impartially and
Bank guarantees issued in connection with construction contracts sometimes contain ambiguous wording and do not state clearly enough the purpose for which they were issued (e.g. advance payment or performance bond). Under Austrian law, if the wording of the guarantee is not clear, the intention of the parties must also
In construction contracts, both an advance payment guarantee and a performance bond in the form of a bank guarantee are often agreed, which the contractor must provide. This distinction is particularly important if the employer makes unlawful use of the bank guarantee. A performance bond ensures that the work is
Pursuit of warranty claims and claims for damages in a construction project not only requires knowledge of the contractual legal framework. In practice, efficient project implementation will first of all depend on the quality of the project organisation. Such already starts with release of the tender documentation which should provide for an as clear as