Liability For Defects In Contracts Of Work
Liability for defect
a. Determination of defect
ARTICLE 474- After the delivery of the work, the owner of the work is obliged to inspect the work as soon as he has the opportunity according to the ordinary course of business, and if there are defects, to notify the contractor within an appropriate period of time.
Either party may, at its own expense, request the work to be inspected by an expert and the result to be determined by a report.
b. Optional rights of the owner
ARTICLE 475- In cases where the contractor is responsible for the defect in the work, the owner may use one of the following optional rights:
1. If the work is defective to the extent that the owner cannot use it or cannot be forced to accept it in equity, or if it is contrary to the provisions of the contract to the same extent, to rescind the contract.
2. Retain the work and demand a discount in proportion to the defect.
3. Request free repair of the work at the contractor’s expense, unless it requires an excessive expense.
The right of the owner to claim compensation according to general provisions is reserved.
If the work is constructed on the property of the owner and dismantling and removal of the work would cause excessive damage, the owner may not exercise his right to rescind the contract.
c. Responsibility of the owner
ARTICLE 476- If the defective work arises from the instructions given by the owner of the work, despite the explicit warning of the contractor, or if it can be attributed to the owner of the work for any reason, the owner of the work cannot use his rights arising from the defective work.
d. Acceptance of the work
ARTICLE 477- After the acceptance of the work explicitly or implicitly, the contractor shall be relieved from all kinds of liability; however, his liability shall continue for the defects which are deliberately concealed by him and which cannot be recognized during the inspection according to the procedure.
If the owner neglects to inspect and notify, he shall be deemed to have accepted the work.
If the defect in the work is discovered later, the owner is obliged to notify the contractor without delay; if he fails to do so, he shall be deemed to have accepted the work.