Real Estate & Construction

The golden rule for additional work, confirmed quite recently by the Supreme Court, is that the contractor must at all times immediately inform the client that additional work will lead to additional payment. If you do not do this, there is a risk that your right to additional payment will be cancelled (the Supreme Court is very strict about this). According to the Supreme Court, it is not so much required that exactly how much additional payment will have to be made is indicated immediately; what matters, according to the Supreme Court, is that the client is immediately aware that the additional work will lead to additional payment. In other words, as soon as you are faced with additional work, it is important to inform the client immediately that the wallet will have to be opened (and indicate, for example, that you will inform the client about this). The explicit advice is also to do this (also) in writing. Otherwise, this may lead to problems with evidence; if you only make the verbal announcement, it will be more difficult to prove that you have given the correct signal.

In other words, as soon as you are faced with additional work, it is important to inform the client immediately that the wallet will have to be opened (and indicate, for example, that you will inform the client about this). The explicit advice is also to do this (also) in writing. Otherwise, this may lead to problems with evidence; if you only make the verbal announcement, it will be more difficult to prove that you have given the correct signal.

It is important to inform the contractor as quickly and effectively as possible of the mistakes he has made or the mistakes for which he is responsible. If the contractor has not yet delivered the work, the risk lies with the contractor. If the work has been delivered, but the maintenance period is still running, the contractor is obliged to repair these defects at his own expense. If the work has been delivered and the maintenance period has expired, the work is at the risk of the client, unless there are hidden defects or a guarantee has been issued for the work.

When reporting, the contractor must be given a reasonable period to remedy the defects. The length of the period for compliance depends on the circumstances. A relevant circumstance is the time the debtor had to prepare before the reminder. Article 7:761 paragraph 1 BW stipulates that any legal action due to a defect in the delivered work expires after two years after the client has protested in this regard. It is possible to interrupt this period (read: extend it). If the UAV 2012 applies to the construction contract, paragraph 12 stipulates for hidden defects that the client's legal action is inadmissible if it is instituted after five years after the day of delivery, or in the case of a maintenance period, the day after the expiry of that period. This is a forfeiture clause and cannot be interrupted – unlike a limitation period. Forfeiture periods are applied by the court ex officio. This means that regardless of whether the contractor invokes a limitation period, the judge himself assesses whether that limitation period applies. It is therefore important to keep a close eye on the periods and to respond adequately.

We often experience that (also) an appeal can be made to the client's insurer. For example, think of a building and contents insurance in the event of leakage. Whether this is possible depends on the policy conditions.

The UAV 2012 stands for the Uniform Administrative Conditions for the execution of works and technical installation works 2012. This is a standard set of administrative conditions that is often used in the Netherlands for often larger, more complex construction projects. The UAV 2012 regulates the legal relationships between clients and contractors in construction projects.

The UAV 2012 contains provisions on a wide range of subjects, such as the execution of the work, the obligations of the contractor and the client, changes to the work, additional and reduced work, delivery, and disputes. These conditions are intended to provide a clear and balanced framework for the execution of construction projects, in which the rights and obligations of both parties are clearly defined. The UAV 2012 is often used by governments and in the private sector and is a successor to earlier versions, such as the UAV 1989.

It is important what is rented and for how long. The rental agreement for a rental car or holiday home that is rented for 'a certain period' (for example 1 week) does not have to be terminated. Such a rental agreement ends when the agreed period expires. However, if you rent the rental car or holiday home for 'an indefinite period', the rental agreement must be terminated.

Specific legal rules apply to built real estate such as homes, retail spaces (including cafés and restaurants) and office spaces/other business premises. The starting point is that the lease agreement for built real estate must be terminated, taking into account a statutory or contractual notice period.

For independent homes and retail spaces that are rented for less than two years, and for non-independent homes (rooms) that are rented for less than five years, there are (still) a few exceptions for the landlord: he must only inform the tenant that the lease will not be continued. The tenant must always terminate such a lease agreement.

Landlords of residential and commercial premises can only terminate if a legally regulated ground for termination occurs. Examples of this are poor tenancy, urgent personal use or the realisation of a zoning plan.

Notice of termination is not required if the tenant and landlord terminate the lease agreement by mutual consent.