Construction contract

A construction contract is the contract by which a contractor undertakes, outside employment, to build a physical work and deliver it, for a price payable by the client.

Legal basis

Title 12 of Book 7 of the Dutch Civil Code contains the regime, from Article 7:750. Article 7:752 governs the price where none has been agreed: a reasonable price then applies. Article 7:754 imposes the duty to warn: the contractor must warn the client of inaccuracies in the commission and of defects in materials or plans supplied by the client, in so far as it knew or ought to have known of them. Since the Building Quality Assurance Act that warning must be in writing and unambiguous. Article 7:755 governs additional work: a price increase is only possible where the contractor pointed out the need for it in good time, unless that was obvious in itself. Article 7:758 fixes completion: on acceptance the work is delivered and the contractor is discharged from liability for visible defects. Since 1 January 2024, for new build in consequence class 1, the tightened rule applies that the contractor remains liable after completion for defects attributable to it. For consumers, Article 7:765 adds the five per cent retention scheme for new-build homes.

How it works in practice

Most disputes concern additional work, delay and defects. Good records of variations, with written confirmation of price and timing, prevent most of them. Completion should be accompanied by a written record with a snagging list; anything not on it that was visible is hard to claim later.

Where it goes wrong

Additional work is agreed orally and disputed afterwards. A second error is completion without a written record. Third, the contractor does not warn in writing about a defective design supplied by the client and so bears the risk itself.