Developer or building contractor liable for construction defects

 Each has its own obligations, its own liability and its own deadlines for claims. 

Although the distinction seems clear at first, the roles  of Developer and Building Contractor are often confused (we know this from the questions and enquiries we receive). The developer is the company that promoted the construction project and sold the homes; the building contractor  is the contracting company  that carried out the works. Their liability will be different.

The developer of the building is liable to the buyers and, because of its role in the construction process, assumes the obligation “to carry out the works without defects, placing a sound product on the market”. It will be ultimately liable for the construction defects.

                Therefore, regardless of the actions available to the homeowner under the Spanish Building Act (Ley de Ordenación de la Edificación, LOE), the owner retains all the actions arising from the purchase contract, including those aimed at terminating the contract or obtaining the repair of any construction defects that may arise, and these contractual liability actions are not subject to the time limits laid down in the LOE.

                That liability  arises from the private contractual  relationship between the homeowner and the Developer/Seller, and from the consideration (price) paid. The developer will therefore always have to answer. Under its contractual liability for 5 years from the sale of the homes, or even jointly and severally for the longer period under the LOE, 10 years.

                The parties involved in the construction (architect, quantity surveyor, building contractor and even the insurers) are not party to that Buyer/Developer contractual relationship and are only liable under the guarantees established in the LOE, the contractor normally being liable for defects in finishes (1 year) and habitability (3 years).

If you have any questions, get advice with no obligation.