The term “botched construction” refers to improperly executed construction work that often leads to significant defects and financial burdens for building owners. Unfortunately, this phenomenon is not uncommon in Austria: according to a focus campaign by the financial police in March 2024, 377 violations were identified in the construction industry, according to a Kurier article published in the spring. These figures underline the need for preventative measures and careful contract drafting to protect builders from such problems.
But how can you avoid botched construction work? We asked two experts about this. One is Edwin Brunner, Managing Director of BauManagement Brunner in Langenrohr, and a long-standing expert in the supervision and coordination of construction projects. The other is Dr. Daniela Witt-Dörring, a lawyer who sheds light on the contract component (article here: Botched construction: Drafting contracts to counter risks).
Mr. Brunner, what measures should be taken in a construction contract to clearly define the responsibilities and obligations of the contracting parties from the outset?
A precise construction contract is essential to avoid misunderstandings and disputes. Important components include detailed bills of quantities with mass and price information, clear descriptions of the work services, payment deadlines and terms, a defined schedule and provisions for delays and construction time overruns, including rights of withdrawal and contractual penalties, a penalty.
How important is detailed technical planning and what role do specific construction plans play in avoiding misunderstandings during the construction process?
Thorough technical planning is crucial to minimize the risk of errors and clearly define the contractually agreed service. Construction plans should include specific details on materials and finishes to ensure accurate implementation. Clear planning documents promote communication between architects, engineers and contractors and reduce the likelihood of disputes.
How do you ensure that the quality of the construction work is guaranteed through regular inspections? Which experts should be involved?
Regular site inspections by external consultants are crucial. The involvement of specialist engineers, such as structural engineers, at various stages to assess quality and compliance with standards is an advantage. The documentation of inspection results and effective defect management ensure quality. The local building inspectorate often takes on these tasks.
Which contractual penalties and guarantees do you consider to be particularly effective in ensuring compliance with the agreed construction quality?
The penalty is an effective contractual penalty for non-compliance with deadlines. In addition, the construction contract should include a right of withdrawal in order to be able to terminate the contract in the event of delays, non-compliance with quality standards or the use of inferior materials. It is important that the additional costs incurred are claimed in such cases.
How do you integrate dispute resolution mechanisms into a construction contract to avoid expensive and lengthy legal proceedings?
By contractually agreeing arbitration and mediation clauses, we offer the parties alternative ways of resolving disputes before legal action is taken. Establishing binding arbitration as an option for resolving disputes can also help to avoid legal proceedings. Regular meetings to review project progress and identify problems at an early stage are also helpful.
How do you promote open communication during the construction process to minimize conflicts and prevent botched work?
We promote open communication by establishing regular construction site meetings at which all parties involved – architects, contractors and subcontractors – are present. The use of modern communication tools, such as project management software, enables the transmission of information in real time. A positive communication culture in which feedback is expressed and accepted helps to identify and resolve misunderstandings and conflicts at an early stage.
Photo credits: Schwarzenegger OG
Related posts:
