The Works Contract in Condominiums: Defects and Warranties

The works contract is the agreement by which a firm undertakes to carry out a work for a price, bearing the organisational risk. In condominium works it defines the object, price, timing and warranties, and sets out what happens if the work turns out defective. The Italian Civil Code provides two fundamental protections for the client: the warranty for defects and non-conformities under Article 1667 and the contractor's ten-year liability for serious building defects under Article 1669. Knowing them is essential to sign and manage the contract.

The parties' obligations

Under the contract the firm undertakes to carry out the work to professional standards, on time and in line with the specification, while the condominium undertakes to pay the agreed price. The contractor acts with its own organisation and at its own risk: it chooses the means, coordinates the workforce and answers for the result. The contract must precisely identify the object, the price, the terms of payment by progress states, the timing with the related penalties and the warranties, referring to the specification as an integral part.

The warranty for defects and non-conformities

Article 1667 of the Italian Civil Code places on the contractor the warranty for non-conformities and defects of the work. Non-conformities are departures from what was agreed; defects are imperfections that diminish the value or make the work unfit for its purpose. A client who discovers defects must report them within the time limits set by law, unless the contractor has acknowledged or concealed them. Where defects exist the client may demand their removal at the contractor's expense, a reduction of the price and, in serious cases, termination of the contract, plus compensation for loss.

• Non-conformities: the work departs from what was agreed in the contract and specification
• Defects: imperfections that reduce the value or fitness of the work
• Reporting of defects within the legal time limits from discovery
• Remedies: removal at the firm's expense, price reduction, termination
• Right to compensation for loss due to the contractor's fault

The ten-year liability under Article 1669

For works meant to last, such as buildings, Article 1669 provides reinforced protection. If, within ten years of completion, the work collapses in whole or in part, or shows clear danger of collapse or serious defects that compromise its stability or make it unusable, the contractor is liable to the client and its successors. Case law has brought within this rule even non-structural but serious defects, such as widespread infiltration or the detachment of claddings that affect the enjoyment of the building. The report must be made within the legal time limit from discovery of the defect.

How to report defects

Reporting defects is an act the condominium must carry out promptly, in writing and with a description of the defects found. It is advisable to document them with photographs, technical reports and, in complex cases, a technical assessment. Promptness is decisive: letting the time limits pass forfeits the warranty. This is why the manager must monitor the work even after testing and act as soon as anomalies emerge, informing the meeting and keeping a record of the communication to the firm.

Useful contract clauses

A well built contract strengthens the legal protections without replacing them. It is useful to provide for the retention on each payment, the firm's duty to hold insurance cover for damage, the rules on variations, the timing and conditions of testing, the delay penalties and the ban on unauthorised subcontracting. These clauses do not derogate from the defects warranty or the ten-year liability, which remain in force, but give the condominium immediate tools to react without waiting for the outcome of litigation.

The role of the meeting and the manager

Signing the works contract for extraordinary works presupposes a meeting resolution approving the work, the firm and the amount. The manager signs the contract in execution of the resolution and manages it, but decisions on action for defects, on termination or on any litigation belong to the meeting, as choices that go beyond ordinary management. Involving the meeting and documenting every step protects both the condominium and the manager.

Keeping the contract, specification, testing records and defect reports in a single file allows the warranties to be asserted within the correct time limits. With AmministraPro the manager archives the contract documentation, monitors the warranty deadlines and keeps track of communications with the firm: the tools are described on the features page and the plans on the pricing page.