An oral agreement, or a written one based merely on a concise cost estimate, carries immense risk for the investor. A safe contract should be concluded in writing and must precisely specify, in particular: the scope of work, work schedule, rules and deadlines for partial acceptances / final acceptance, protective mechanisms (e.g., performance retention deposits), contractual penalties for delay, and rules for contract termination or withdrawal.

It is also important to regulate the procedure for reporting defects and to introduce a mechanism for controlling the engagement of subcontractors. Such a contract protects your money when the contractor fails to deliver on their promises—both to you and to their subcontractors, whose claims you are liable for.

This is one of the most stressful situations for the client investor. Instead of waiting, you must act-promptly and formally. The better and more precise the contract, the greater your options.

In a typical situation, if you as the investor drafted the contract properly, the first step is a written demand to resume work, specifying a final deadline. If this produces no result, you have the right to withdraw from the contract, impose contractual penalties, and hire a new company (so-called substitute performance) at the expense and risk of the defaulting contractor. Conducting an inventory of the interrupted work is crucial in such a situation. However, at its core, you must draft the contract well so that it provides for these options.

The fact that the final acceptance protocol was signed does not relieve the contractor of liability for defects and faulty workmanship. Under the law, in a typical situation, you are protected by statutory warranty (rękojmia), which lasts up to 5 years for real estate. You have every right to demand the free removal of defects within a specified timeframe, a price reduction, or-in the case of material defects-even withdrawal from the contract.

It is advisable to document defects and report them in writing without delay. Furthermore, it is worth stipulating contractual warranty obligations (gwarancja) in the agreement, detailing the contractor’s exact duties (response times for defects/faults, categorizing types of defects, etc.), as well as financially securing both the guarantee and statutory warranty periods (e.g., through a bank or insurance guarantee).

Unfortunately, Polish law provides for joint and several liability of the investor for paying subcontractors’ remuneration if the investor was aware of their presence on the construction site and accepted it (i.e., if they were registered and the investor did not effectively object). This means that a subcontractor can demand payment directly from you, even if you have already paid the general contractor.

To avoid this, you should structure the contract to monitor the status and claims of subcontractors – in particular by making the release of payment installments to the general contractor conditional upon presenting proof of payment to subcontractors.

It depends on the nature of the defects. Current case law indicates that the investor may refuse acceptance only if the defects are material (i.e., they prevent the structure from being used for its intended purpose, such as a leaking roof or non-functioning utilities).

If the defects are non-material (e.g., a poorly painted wall, minor scratches), the investor is obliged to accept the work, but should record a punch list/list of defects and a deadline for their removal in the protocol, or have them rectified under statutory or contractual warranty procedures.

Unpermitted construction (illegal development) is a serious issue (e.g., expansion without a permit or construction inconsistent with the design), but it does not always have to end in demolition. Current regulations (including, for example, the simplified legalisation procedure for structures older than 20 years) offer broad possibilities for legalising such conditions.

The Law Firm’s attorneys can help you navigate the legalisation procedure before the building supervision authorities, prepare the necessary documentation in cooperation with other specialists, and minimise potential penalty fees.