When a Unit Owner Does Not Pay for Extraordinary Works: What the Administrator Can Do

When a unit owner does not pay for extraordinary works, the administrator faces a problem that risks stalling the whole construction site: contractors must be paid according to the progress of the work, and failure to collect even a single instalment can strain the condominium's cash flow. Fortunately, Italian law provides tools designed precisely for these situations, faster and more effective than the ones used for ordinary arrears.

Why arrears on extraordinary works are more critical than ordinary ones

Extraordinary expenses involve often costly interventions, such as rebuilding the facade, structural reinforcement or replacing the central heating system, and are usually split into several instalments tied to construction progress. If a unit owner fails to pay their share, the administrator cannot simply wait: the contractor is entitled to the agreed payments, and a prolonged delay can trigger late interest, suspension of the works or even disputes with the contractor, with damages falling on all the other, blameless owners.

The immediately enforceable payment order when a unit owner does not pay for extraordinary works

The main tool available to the administrator is a petition for a payment order, which the condominium can obtain based on the cost allocation approved by the assembly, without having to wait for an ordinary lawsuit. For obligations relating to urgent expenses, or those otherwise necessary to avoid harm to the management of the building, the order can be requested and granted with a clause of provisional enforceability, meaning the condominium can proceed with forced recovery of the debt, for instance through an attachment, without waiting for the outcome of any opposition proceeding brought by the defaulting owner.

This feature makes the payment order particularly well suited to extraordinary works, where contractors' payment timelines cannot wait for the ordinary pace of civil justice. The administrator, once authorized or otherwise acting within their powers, must move promptly as soon as they notice the delay, preventing the arrears from building up and becoming harder to recover.

The mandatory special reserve fund for extraordinary works

To reduce the risk of arrears during construction, the law requires setting up a special reserve fund equal to the cost of the works, at the same time as the resolution approving the extraordinary intervention, unless the condominium already has a policy or guarantee suitable to cover execution of the work. The fund must be paid in before the works begin and serves precisely to advance the necessary resources, reducing dependence on each owner's timely payments during construction.

Even with the special reserve fund in place, every owner is still required to pay their own share: the arrears of one or more participants still translate into a hole in the condominium's cash, which the administrator must cover or promptly report to the assembly.

Joint liability, shares and the responsibility of other owners

An aspect that is often misunderstood concerns the liability of other owners for a defaulting owner's share. The creditor, meaning the contractor or supplier, may initially turn to the condominium as a whole, but the administrator is required to communicate the names of defaulting owners to creditors who request them, so that the creditor can pursue those owners directly before turning to the owners who are current on payments. This mechanism protects those who have already paid their share, but it requires precise and up to date accounting on the administrator's part.

Creditors cannot act against owners who are current with payments until after pursuing the defaulting owners.

Formal notice, reminders and the steps before legal action

Before resorting to a payment order, it is good practice for the administrator to send a formal reminder to the defaulting owner, indicating the amount owed, the missed deadline and a final term for voluntary payment. This step, besides offering an opportunity for amicable settlement, also provides useful documentation in the event of later litigation, showing that the condominium acted fairly and transparently before turning to legal remedies.

Late interest and legal costs borne by the defaulting owner

Beyond the principal share, the defaulting owner is required to pay accrued late interest and, generally, the legal costs incurred by the condominium to recover the debt, including those relating to the summary proceeding. This principle discourages unjustified delays and protects the condominium community, which should not have to bear the costs generated by a single participant's default.

Orderly management to prevent and address arrears

Keeping track of deadlines, payments and the progress of extraordinary works is easier with digital tools designed for condominium management: automatic reminders, clear reporting on the special reserve fund and precise payment tracking reduce the risk of arrears getting out of hand. The features page of AmministraPro describes the tools dedicated to collection and monitoring of extraordinary works, while the pricing section allows comparing the plans available for one's own management.