Compensation for bad workmanship in a new building

DEFECTIVE works in a newly constructed building, house or apartment entitle the owner to claim compensation for violation of the sale agreement or for negligence, equal to the cost of repairs.

There are often many defects, omissions, snags and unsuitable materials used in buildings ready for delivery, even when they are constructed by their owner. It is a serious problem observed because of the great demand concerning immovable property. Some land developers and building contractors are only interested in maximising profit instead of concentrating on construction. Moreover, there is lack of inspection on the government’s behalf, allowing this problem to continue.

When there are defects or omissions in a building, the owner (purchaser) is entitled to claim compensation based on the violation of the agreement between him and the vendor (contractor). He can also file a claim based on the civil offence of negligence. The person aggrieved is entitled to compensation equal to the cost of repairs at the time, while the contractor has the obligation to restore them. The damages that can be claimed must be reasonably foreseen and attributed to the violation of the sale agreement or caused by the negligence of the obliged party.

In a court action, the purchaser should include: details concerning the negligence; the violation of the agreement and damages caused; costs of repairs of the damages. During the hearing of the case, the claimant is obliged to submit evidence by an expert to justify his claim. Such an expert would be a civil engineer, a geologist engineer, a quantity surveyor or the building contractor who has repaired the defects.

In a case before the District Court of Paphos, the claimant, who bought a house, found many serious omissions and defects, since her house was not built according to the building regulations and the art of good workmanship. She filed an action claiming £57,864 from the contractor and his guarantor for the costs of repairs. The court awarded her £55,391, plus legal costs. She based her claim on the fact that the contractor had violated a stated and agreed term of the sale contract according to which he was obliged to build the house with attention and care; she also based her claim on the civil offence of negligence.

Some of the defects the owner reported were:

l the filling in with earth – soil was not made either with appropriate materials or in the right way and the compaction was not normal, causing problems to appear on the house such as cracks in the building and gaps between slabs

l There were defects in the supporting walls
l No insulation was made in many places, resulting in moisture
l The walls around the drainage were built with bricks instead of concrete, so they broke because of the subsidence. Thus, they were reconstructed and the cost was very high

l Many problems appeared on the outside staircase, subsidence was caused and the stairs were dislodged from the building
l There was also subsidence underneath the paving-stone of the swimming pool, dislodging it from the main building
l The materials used for the insulation and painting of the swimming pool area were not proper causing two-colour printing and chipping-off.

In another case before the Supreme Court, a well known construction company sold an apartment within a complex but when the purchaser took delivery of the apartment, he found serious defects. He filed an action claiming compensation for repairing 60 defects and the court adjudicated compensation for many of the defects. Some of the defects were: cracks in the bedroom because of the absence of proper joints; cracks on the floor because of subsidence of the building; subsidence of the entrance veranda because of structural defects related to the building foundations and omission in priming the bedroom woodwork.
Therefore, it is absolutely necessary for a prudent purchaser of an off-plan or a newly constructed building, house or apartment, to seek advice from experts, such as a lawyer, a civil engineer or architect, to assist in taking the right decisions and making proper agreements in every legal, technical and building aspect to avoid being in a difficult position later.

n George Coucounis is a Larnaca-based lawyer, email: [email protected]