These are boom years for the construction industry, but that emphatically does not mean that everything is hosanna. In fact, the strongly attracted market is struggling with new problems: the builder's diary is overflowing, good and affordable personnel are scarce, and the price and delivery time for building materials continue to increase. This creates the risk of compromising the quality of new construction. The recently published article by the Home Owners Association confirms this picture: the number of delivery defects has increased by 40% compared to the crisis period. A good time to touch on the legal context of completion defects and discuss some tips to prevent completion defects (and resulting disputes).
Legal status delivery point
After the builder gives notice that the construction of the home is finished, the client inspects the home and then accepts the work or not (with reservations). After acceptance, the home is considered completed. The work is then at the client's risk and the builder is, in principle, released from liability from that moment on for defects that the client should reasonably have discovered at the time of delivery ("the visible defects"). Completion thus has legal consequences. The client is therefore well advised to carefully survey the house during the survey - possibly together with an expert.
All discrepancies and defects noted by the client during the tour, the builder must note them on the completion report (if the builder does not agree with a point, he may make a reservation). The builder is obliged to remedy these completion defects within three months of completion. The client has a "leverage" in this regard: the 5% deposit rule. Under this arrangement, the client can deposit up to 5% of the final instalment of the contract price in a deposit with the notary. If the builder does not repair the defects within three months, the client can suspend (part of) the payment of the deposit by the notary to the builder.
Tips for preventing completion points (and resulting disputes)
The question is how the builder prevents the client from resorting to the 5% deposit rule or some other legal remedy. Here are four tips:
1. Organize a pre-delivery meeting
During a preliminary inspection, the client makes an independent tour of the house - usually several weeks before the formal delivery. The preliminary inspection has no legal status, but the builder can correct any discrepancies and shortcomings on the basis of the client's comments before the time of delivery. It is thus an extra "quality check" for the builder.
2. Postpone the time of completion if the remaining construction time allows it
This can be a good choice if the home still has a multitude of defects just before completion. By doing so, the builder avoids having to return - or his subcontractors - at a later date to fix completion points with all the costs that this entails. Delaying completion is often a more efficient and cheaper solution for the builder. Moreover, the builder thereby ensures that the work is carried out without inconveniencing the client (because, for example, he would have already moved into the house and would have to stay home for every work visit).
3. Invest in communication and expectation management
The delivery is generally an important and exciting moment for the client to conclude a long process with many moments of choice. With open communication, the builder can better manage the client's expectations about the (quality of the) home. Moreover, with good communication, the builder can gain insight into the client's underlying interests. For example, proper delivery may be essential for the client because otherwise the subsequent planning with the painter or tiler may be jeopardized. Should a setback eventually occur, there will most likely be more mutual understanding and support for an appropriate solution.
4. Provide sound recovery
If, despite the foregoing, there is a delivery defect, the builder would do well to ensure proper repair. If the repair takes (too) long, produces new defects (e.g. damage) and/or is not carried out properly, this inevitably leads to irritation on the part of the client. Builder and client can therefore become increasingly involved in a negative spiral that is difficult to break.
Conclusion
The builder bears the responsibility for repairing completion defects. As a result, a home with a large number of completion defects will return to the builder like a boomerang. Therefore, preventing completion defects is and always will be better than - the time, energy, image damage and costs associated with - curing them.
