Dutch construction law: contracts, permits and contractor liability

On a Dutch construction project your legal position is decided mainly by the contract, the standard conditions (usually the UAV 2012 or the UAV-GC 2005) and the specifications, with the Dutch Civil Code (BW) filling the gaps. Since 1 January 2024 the Quality Assurance for Building Act (Wet kwaliteitsborging voor het bouwen, Wkb) has made the contractor liable for defects not discovered at delivery, unless they cannot be attributed to him.

A construction contract is a contract for work (aanneming van werk) under Article 7:750 BW: the contractor builds and delivers a physical work for a price, outside an employment relationship. This article explains contracts, permits, the contractor’s duties and liability, and how disputes are resolved.

Which rules govern a construction project?

Most professional projects use standard conditions. The UAV 2012 is used for traditional contracts, where the client provides the design; the UAV-GC 2005 is used for integrated contracts, where the contractor also designs. These conditions regulate variations, delay, completion and liability, and they only apply if they are expressly declared applicable in the contract.

The statutory rules in Articles 7:750 and following BW apply in addition, and some of them cannot be set aside to the detriment of a consumer client. Reasonableness and fairness (Article 6:248 BW) can also add obligations to what the contract literally says, but clear written terms remain the best protection.

What should the contract contain?

The contract should at least set out the scope of work, the price and price mechanism, payment schedule, completion date, quality requirements, warranties and the procedure for variations (meer- en minderwerk). It should also state which standard conditions apply and which forum decides disputes: the civil courts or arbitration.

Which permits do you need?

Since 1 January 2024 the Environment and Planning Act (Omgevingswet) governs building, environmental and demolition consents. For most construction work you need an environmental and planning permit (omgevingsvergunning), applied for through the Omgevingsloket and usually decided by the municipality.

Under Article 16.64 of the Omgevingswet the authority must decide within eight weeks, and may extend that period once by at most six weeks. If the extended procedure applies (Article 16.65 Omgevingswet), the decision period is six months under Article 3:18 of the General Administrative Law Act (Awb). Build these periods into your planning.

Technical building requirements, including energy performance and safety, are set out in the Buildings in the Living Environment Decree (Besluit bouwwerken leefomgeving). On site, the Working Conditions Act (Arbowet) requires a risk assessment, safety measures and instruction of workers, supervised by the Netherlands Labour Authority (Nederlandse Arbeidsinspectie).

What are the contractor’s main legal duties?

The contractor must deliver a work that meets the contract and is free of defects. Under Article 7:754 BW he must also warn the client about errors in the assignment, in the client’s designs, drawings, calculations or materials, and about the soil, as far as he knew or ought to have known of them.

For building works this warning must be given in writing, unambiguously and in time, and must point out the possible consequences (Article 7:754(2) BW). A contractor who stays silent may be liable for the resulting damage, even if the client prescribed the faulty design.

When is a contractor liable for defects after delivery?

Under Article 7:758(4) BW the contractor of a building work is liable for defects that were not discovered at delivery, unless they cannot be attributed to him. Towards a consumer this rule cannot be set aside; towards a business client it can only be excluded expressly in the contract.

A claim for a defect becomes time-barred two years after the client complained about it (Article 7:761(1) BW). For building works it is in any case time-barred twenty years after delivery (Article 7:761(2) BW). Liability for known hidden defects that the contractor concealed cannot be excluded or limited (Article 7:762 BW).

Which extra rules protect consumers?

When a private individual commissions the construction of a home, Articles 7:765 to 7:769 BW apply. Under Article 7:768 BW the consumer may withhold up to 5% of the contract price from the last instalment and deposit it with a civil-law notary (notaris) as security for the repair of defects found at delivery.

How are construction disputes resolved?

Many contracts require negotiation or mediation first. Where the UAV or UAV-GC applies, disputes are often referred to the Council of Arbitration for the Building Industry (Raad van Arbitrage voor de Bouw), which uses arbitrators with technical expertise. Without an arbitration clause, the District Court decides, or the subdistrict court (kantonrechter) for claims up to €25,000.

For urgent matters, such as a stopped project or a disputed bank guarantee, you can start summary proceedings (kort geding) before the preliminary relief judge. That judge gives a provisional ruling, usually within a few weeks, while the main dispute is resolved later.

What should you check as a contractor?

• Whether the UAV 2012 or UAV-GC 2005 is expressly declared applicable in the contract.
• Whether you have warned the client in writing about errors in designs or materials (Article 7:754 BW).
• Whether variations are agreed in writing before the work is done.
• Whether any limitation of your liability under Article 7:758(4) BW is stated expressly.
• Whether the permit is granted and final before you start.

What should you check as a client?

• Whether the scope, price and completion date are fixed in the contract.
• Whether the contract limits the contractor’s liability for hidden defects.
• Whether you record all defects in writing at delivery.
• Whether you complain about later defects promptly, given the two-year period of Article 7:761 BW.
• As a consumer: whether you use your right to withhold 5% under Article 7:768 BW.

What can we do for you with construction law?

Our construction lawyers and real estate lawyers assist contractors and clients:

• We review your construction contract and the applicable UAV or UAV-GC conditions before you sign.
• We draft written warnings under Article 7:754 BW and notices of default.
• We assess a defects claim and its limitation period under Article 7:761 BW.
• We conduct proceedings before the Council of Arbitration for the Building Industry or the District Court.
• We start summary proceedings (kort geding) when a project is blocked.

Summary

• The contract, the UAV or UAV-GC and the specifications decide most questions; Articles 7:750 and following BW fill the gaps.
• Since 2024 the contractor is liable for defects not discovered at delivery, unless not attributable to him (Article 7:758(4) BW).
• The contractor must warn the client in writing about errors in the design or materials (Article 7:754 BW).
• An omgevingsvergunning is decided within eight weeks plus at most six weeks, or six months in the extended procedure.
• Defect claims lapse two years after the complaint and at the latest twenty years after delivery.

Frequently asked questions